Customs officials in Hong Kong searched three chain stores after finding, rather than toys, a claw machine filled with about 3,000 fake branded perfume products at the stores, believed to be the first such find by customs officials.
Hong Kong Customs and Excise Department said on Wednesday that the counterfeit goods bore luxury brand labels and had an estimated street value of HK$120,000 (US$15,400).
Among the counterfeit products were perfumes bearing Chanel and Dior labels.
Six claw machines worth about HK$60,000 were also seized during the investigation, the police said.
Three claw machine parlours in Kwai Chung and Tsuen Wan were raided on Tuesday and counterfeit goods were seized, leading to the arrest of the shop owners and female staff members.
“These machines, which store counterfeit branded perfumes, were usually installed near the main entrances of shops to attract customers,” said Chau Hui-man, a senior investigator from the Customs Intellectual Property Investigation Department.
The perfumes that were seized were said to be in small bottles not used by genuine brands.
“Customers were told the perfumes were genuine samples sold at a low price,” Chau said.
He said this was the first time that customs officials had discovered a claw machine parlor selling counterfeit perfume brands.
According to a source familiar with the case, each bottle of counterfeit perfume was worth HK$30 to HK$50, and each claw game cost HK$5. The counterfeit goods were being sold for 20 to 50 percent of the original price.
When asked about the odds of winning a bottle, he said: “It’s all down to luck.”
Customs officials are investigating how long the three stores have been selling counterfeit perfume brands, as well as the source of the counterfeit goods.
The searches were part of an operation that was carried out from August 8 to Tuesday following a complaint filed with police.
After conducting a thorough investigation with the cooperation of copyright owners, customs officials raided three claw machine parlours and seven shops in Mong Kok, Tung Chung and Sai Kung. The remaining seven consisted of three pharmacies and four retail stores.
A senior inspector said around 5,000 counterfeit goods were seized from 10 shops along with six claw machines and eight people, including four men and four women, were arrested in the operation.
Customs also expressed health and safety concerns as the seized products were intended for direct use on the skin. Photo: Mei Tse
According to Chau, the counterfeit goods consist of skin care products, cosmetics and perfumes, with a total estimated street value of HK$270,000.
He warned that the seized products were intended for direct use on the skin and therefore lacked quality assurance, raising health and safety concerns, adding that samples would be taken to a government laboratory for testing.
The eight suspects were released on bail pending further investigation.
Under the Trade Names Ordinance, selling or possessing with intent to sell products bearing counterfeit trademarks carries a maximum imprisonment of five years and a fine of HK$500,000.
The department said the investigation is still ongoing and more arrests are possible.