11 car sales firms hauled up for failing to charge 10% deposit from buyers

Selangor chief enforcement officer Azman Adam (third from left) and other officers showing documents seized during the operation. (Bernama pic)

SHAH ALAM: The domestic trade, cooperatives and consumerism ministry hauled up 11 car sales companies in Selangor for not charging vehicle buyers the 10% deposit in “Ops 0 Peratus Deposit” conducted statewide yesterday.

Its Selangor chief enforcement officer Azman Adam said the companies involved were among 35 selling new and used cars inspected during the operation from 10am to 6pm.

It involved nine personnel and an enforcement officer.

“We found that these people took less than 10% deposit from buyers and this means they are in violation of Section 31 (1) of the Hire Purchase Act 1967,” he told a press conference here today.

He said the section provides for a fine of up to RM100,000 for the first offence and a fine not exceeding RM250,000 for the second or subsequent offence, upon conviction.

According to him, the companies aimed to increase sales by not charging the 10% deposit for the vehicles.

He said such a situation could cause problems to buyers in the event of an accident or a vehicle being repossesed by the bank.

Meanwhile, in a separate case, he said the ministry had seized about five tonnes of milk powder from the premises of a company in the Klang Valley found to have re-packaged the milk without a valid halal certification and logo.

“In the raid on Feb 28, the company was found to be importing milk from New Zealand and then repackaging it in smaller packets of 1kg and 500gm for the local market.

“We doubt whether during the packaging process and storage of the milk, the premises complied with the proper procedures and whether the equipment used was clean or handled in accordance with regulations,” he said.

He said the case was being investigated under Paragraph 5 (1) of the Trade Descriptions (Certification and Marking of Halal) 2011, that all imported food and goods marketed in Malaysia cannot be described as halal unless it is certified halal by foreign halal certification bodies recognised by the Department of Islamic Development Malaysia.

He said if found guilty of the offence the company could be fined up to RM200,000.