Hong Kong Customs today (December 19) arrested four male staff members of a fitness centre suspected of engaging in aggressive commercial practices in the course of selling fitness service, in contravention of the Trade Descriptions Ordinance (TDO).

     Customs earlier received information alleging that staff members of a fitness centre with two branches in Mong Kok and Yau Ma Tei were suspected of falsely claiming that customers had not fully paid for their procured fitness service plans and, by imposing undue influence, requested four customers to pay additional sum of money. The customers were forced to pay a total of $10,800, $16,200, $48,800 and $246,000 respectively.

     After investigation, Customs officers today arrested four men, aged between 21 and 23.

     Investigation is ongoing and the arrested men have been released on bail pending further investigation.

     Customs reminds traders to comply with the requirements of the TDO and consumers to procure services at reputable shops. Before making any purchase decision, consumers should be cautious in providing their identity cards or credit cards to a salesperson. Consumers should firmly refuse signing any documents if they do not clearly know the content and price of the service to be provided, or have no intention to purchase the service.

     Under the TDO, any trader commits an offence of engaging in aggressive commercial practices if harassment, coercion or undue influence is used to impair consumer's freedom of choice or conduct, causing the consumer to make a transactional decision. The maximum penalty upon conviction is a fine of $500,000 and imprisonment for five years.

     Members of the public may report any suspected violations of the TDO to the Customs 24-hour hotline 2545 6182 or its dedicated crime-reporting email account (crimereport@customs.gov.hk).

     Correctional officers at Lai Chi Kok Reception Centre today (December 19) intercepted a male remand person in custody smuggling suspected dangerous drugs into the centre by concealing them inside his body.

     The 54-year-old person in custody was remanded in the institution for the offence of possession of dangerous drugs on December 15. After undergoing X-ray body scanning, he was suspected to have swallowed suspected dangerous drugs before admission and was therefore separated and put under close monitoring.

     By 1.45pm today, he had discharged six packs of suspected dangerous drugs wrapped in plastic sheet. The case has been reported to the Police for follow-up.

     A spokesperson for the Correctional Services Department said, "The department takes every measure to stop the introduction of dangerous drugs or unauthorised articles into correctional institutions in order to maintain good order and discipline and a drug-free environment for all persons in its custody."

     Two men and a company were fined from $6,000 to $12,000 at the Kowloon City Magistrates' Courts today (December 19) for contravening the Clubs (Safety of Premises) Ordinance.

     The courts heard that in May this year, officers from the Office of the Licensing Authority (OLA) of the Home Affairs Department conducted inspections at two clubs on Nathan Road and Hau Fook Street in Tsim Sha Tsui, which had been operating with certificates of compliance (CoCs). 

     The club on Nathan Road was found to have a layout that deviated from the registered drawing and the number of people at the club exceeded the maximum allowable capacity as stipulated in the CoC. Conditions 3 and 6 of the CoC were breached. The man, being the CoC holder of the club, was charged with contravening section 21(2) of the Ordinance.
        
     During the investigation in the club on Hau Fook Street, the OLA officers posed as customers and patronised the club for food and drinks without being asked to show their membership status or being invited to join the club as members. The OLA officers also found that the exit route had been obstructed. Conditions 12 and 19 of the CoC were breached. Also, the OLA officers found that the club had been operating under a name other than the one indicated on the CoC on the day of inspection.
          
     The man, being the manager of the club, was charged with contravening sections 21(1) (a) and 21(1) (c) of the Ordinance and the company, being the CoC holder of the club, was charged with contravening section 21(2) and 21(1) (c) of the Ordinance.

     A spokesman for the department reminded all CoC holders to comply with the conditions as stipulated therein. Enforcement action will continue to be taken against illegal club operations.

     A woman was fined $6,000 at the Kowloon City Magistrates' Courts today (December 19) for contravening the Hotel and Guesthouse Accommodation Ordinance.
      
     The courts heard that in June this year, officers of the Office of the Licensing Authority (OLA), the Home Affairs Department, inspected a suspected unlicensed guesthouse on Reclamation Street in Mong Kok. During the inspection, the OLA officers posed as lodgers and successfully rented a room in the guesthouse on a daily basis.
      
     According to the OLA's records, the guesthouse did not possess a licence under the Ordinance on the day of inspection. The woman responsible for managing the premises was charged with contravening section 5(1) of the Ordinance.
      
     A department spokesman stressed that operating or managing an unlicensed guesthouse is a criminal offence and will lead to a criminal record. Upon conviction, the offender is liable to a maximum fine of $200,000 and two years' imprisonment.
           
     The spokesman appealed to anyone with information about suspected unlicensed guesthouses to report it to the OLA through the hotline (Tel: 2881 7498), by email (hadlaenq@had.gov.hk), by fax (2504 5805) using the report form downloaded from the OLA website (www.hadla.gov.hk), or through the mobile application "Hong Kong Licensed Hotels and Guesthouses".

The following is issued on behalf of the Hong Kong Monetary Authority:

     The Hong Kong Monetary Authority (HKMA) announced today (December 19) the composite interest rate at the end of November 2018 (Note).
      
     The composite interest rate, which is a measure of the average cost of funds of banks, increased by 1 basis point to 0.78% at the end of November 2018, from 0.77% at the end of October 2018 (see Chart 1 in the Annex). The rise in composite interest rate reflected increases in the weighted funding cost for both deposits and interbank funds during the month (see Chart 2 in the Annex).
      
     The historical data of the composite interest rate from the end of the fourth quarter of 2003 to the end of November 2018 are available in the Monthly Statistical Bulletin on the HKMA website (www.hkma.gov.hk). The next data release is scheduled for January 17, 2019 and will provide the composite interest rate at the end of December 2018.

Note: The composite interest rate is a weighted average interest rate of all Hong Kong dollar interest bearing liabilities, which include deposits from customers, amounts due to banks, negotiable certificates of deposit and other debt instruments, and Hong Kong dollar non-interest bearing demand deposits on the books of banks.  Data from retail banks, which account for about 90% of the total customers' deposits in the banking sector, are used in the calculation.  It should be noted that the composite interest rate represents only average interest expenses.  There are various other costs involved in the making of a loan, such as operating costs (e.g. staff and rental expenses), credit cost and hedging cost, which are not covered by the composite interest rate.