HK Customs investigates after sudden closure of online Choco Cloud Kids store leaves customers stranded, 2 former directors arrested

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25th April 2024 – (Hong Kong) ‘Choco Cloud Kids’ online company specialising in the procurement of lifestyle goods announced its abrupt cessation of operations, leaving numerous customers without their pre-ordered products or refunds. This has resulted in significant financial losses for those affected.

The company, which dealt in a range of items including clothing, beauty products, food, and household goods, had accumulated around 451 complaints within just two weeks of its closure. The total financial impact is estimated at approximately HK$400,000, with the largest individual order amounting to around HK$20,000.

Following the surge in complaints, the Customs and Excise Department’s Trade Descriptions Investigation Division took over the case. The investigation focuses on allegations of improper acceptance of payments and violations of the Trade Descriptions Ordinance. As part of their initial actions, customs officers arrested two former directors of the company, aged 33 and 38. Both men have since been released on bail pending further investigation.

Authorities have not ruled out the possibility of additional arrests as the investigation progresses. The Customs and Excise Department has issued a call to action for other affected consumers to come forward. They are urged to report their cases promptly, providing details of their purchases and any relevant documentation to assist in the ongoing investigation.