A simple pricing error has ended up costing a well-known pharmacy in Terengganu tens of thousands of ringgit.
RM2 price difference leads to RM50k fine
Lau & Tan Pharmacy Sdn. Bhd. was fined RM50,000 by the Sessions Court after it was found guilty of misleading consumers by underpricing a goat’s milk product by RM2.
The court ruled that the price tag displayed was lower than the actual selling price from three years ago.
The item was labelled at RM89.90, which was RM2 less than its actual selling price of RM91.90.
The company, represented by its managing director Datuk Lau Tiam Kwee, was found guilty after Judge Nazlyza Mohamad Nazri stated that the defence failed to counter the prima facie case presented by the prosecution.
What happened?
According to Kosmo!, incident took place on 25 May 2022 at around 9.30am at the pharmacy’s branch in Pusat Komersial Chabang Tiga.
The product in question was an 800g tin of Purenat Goat Gold Milk Powder, which was labelled as RM89.90, RM2 cheaper than its actual price of RM91.90.
The prosecution argued that this pricing could mislead consumers, and the court agreed.
The company was charged under Section 12(1)(a) of the Consumer Protection Act 1999, which prohibits misleading price displays and carries a maximum fine of RM250,000. In this case, the pharmacy was fined RM50,000.
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