A leather goods retailer in Admiralty started selling knock-offs of Louis Vuitton and Chanel handbags and other branded products stored in a secret chamber of the shop six months ago.
Within a short period, the place gained popularity among fashion-conscious office ladies working in the district.
Business was brisk, until someone reported it to authorities. The Customs Department deployed undercover agents who learned that the shop had a secret storeroom for the fake products.
On Thursday, customs officers raided the shop and seized more than 600 counterfeit products worth around HK$1.05 million, Apple Daily reported.
A supervisor and an employee of the shop were arrested, and later released on bail pending further investigation.
It was learned that the 300-square-foot store has a storeroom with an area of around 90 square feet behind the cashier.
Different counterfeit products, including handbags, purses, clothes, shoes and sunglasses, were displayed inside the room. Most were fake Louis Vuitton and Chanel items.
Phoebe Wong Wai-chuen, commander of the intellectual property general investigation division, said the shop has been operating for a few years, mainly selling leatherware and tailor-made leather goods.
Since the shop started selling fake goods, staff would allow frequent customers to enter the hidden chamber and choose from the store’s collection of knock-offs.
The counterfeit goods were of very high quality, the report said, selling for about 30 to 60 percent below the original prices of the genuine goods.
Under the Trade Descriptions Ordinance, the maximum penalty for selling counterfeit goods or possessing them for sale is a HK$500,000 fine and five years in jail.
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