The Consumer Council, the police and the Customs and Excise Department have teamed up to set up a channel to deal with future complaints from mainland tourists swindled by shop operators.

The consumer watchdog will look into complaints immediately and decide on what action to take, while Customs officers may be assigned to seize suspected fake products from retailers.

The police, for their part, will investigate allegations of deception and prosecute the businessmen involved if there are sufficient grounds.

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Consumer Council chief executive Connie Lau Yin-hing, who announced the moves Tuesday, said the police will not hesitate to crack down on fraud, while customs officials will deal with any copyright infringement.

Chief Executive Donald Tsang Yam-kuen warned in Beijing Monday the government will not allow such commercial malpractices to continue.

Tsang said he has zero tolerance for dishonest business practices that affect the city's image as a major shopping destination.

The outcry against deceptive retailers followed a scathing report on China Central Television earlier this month that singled out two Hong Kong watch and jewelry retailers as having cheated mainland tourists of hundreds of thousands of dollars by selling fakes passed off as genuine luxury goods.

The Consumer Council said it has so far dealt with five cases referred to them by the police and that only one case has been solved.

Most of the complaints were directed at Majestic Watch & Jewellery in To Kwa Wan - one of the shops named in the CCTV report.

The council said it had already contacted the shop, but received no response.

Customs officers continued raids on suspect tourist shops in Hung Hom, To Kwa Wan and Tsim Sha Tsui Tuesday but is not known whether more suspected fake items were seized.

Officers raided Majestic Watch Friday, seizing some 500 suspected counterfeit watches worth about HK$4 million.

In Tuesday's raids, officers distributed leaflets at various establishments, warning against dishonest business practices and reminding shopowners and staff of the stiff penalties for selling fake products.

Customs officers checked 25 shops at tourist hot spots last week and detained three people for questioning.

Assistant Superintendent Chiu Yuk- hung said officials are very concerned about the problem and have invited a Swiss watch expert to check on products seized from Majestic Watch.

More mainland tourists continued to swamp the To Kwa Wan shop Tuesday to demand refunds, but it has remained shut since Friday.

A company employee, surnamed Lee, said the firm will make an official announcement later to explain the incident.

Wang Guohua, a tourist from Harbin in northern China who alleged he had been cheated by Majestic Watch, lodged a complaint with the Consumer Council Tuesday.

He said he asked some experts to examine two "Vacheron Constantin" watches he had purchased last year for HK$120,000, and the timepieces were found to be modified second-hand products.

Wang said he had lost confidence in shopping in Hong Kong.

"We used to think Hong Kong is a shopping paradise, but it has now turned out to be just the same as the mainland.

"At least we know they are fake products [in the mainland] when they are sold at 10 yuan or so, but you never know in Hong Kong."