Mask makers using public funds warned against promos

The Secretary for Commerce, Edward Yau Tang-wah  warned local face mask manufacturers today to tread carefully when using a government subsidy scheme to help market their products – saying they may be in breach of the Trade Descriptions Ordinance if they give consumers inaccurate information, RTHK reports.

So far, the government has approved 13 local production lines for its Local Mask Production Subsidy Scheme – which provides subsidies of up to HK$3 million to firms that can manufacture masks here in Hong Kong for government use.

The subsidies are to help cover the costs of equipment and setting up the production lines, along with any expenditure over testing and standards compliance issues.

Approved firms are required to give a specified number of masks to the government at a set date each month before they can sell any extras to the public.

However, one suppliers has been found to have already been selling masks in the open market, even though it has yet to sign a formal contract with the government, or give the administration a single mask.

On the package of the masks, the firm states that they are the first to produce masks for the government.

But Yau said any firms involved in the program must be very careful when making claims about their product.

“I would urge any of this sort of company be very cautious in promoting themselves through the scheme because that would create a lot of misunderstanding to the consumer market”, he said.

Yau added that the government would only sign contracts with these suppliers after their masks are certified to be safe after passing the relevant tests.

“All products, in particular, surgical masks, when they are being sold in Hong Kong they have to fulfill the Trade Descriptions Ordinance and the Consumer Products Safety Ordinance. These are the prerequisites, irrespective of whether they are produced in Hong Kong or under any sort of scheme. They need to be subject to these consumer protections.”

The government scheme will only subsidise seven more production lines in addition to the 13 already approved.

The Hong Kong Productivity Council says there are still 26 applications involving 33 production lines which meet all the eligibility criteria of the scheme.

A government spokesman said these remaining applications will be processed as soon as possible.