Burger King fined RM40,000 over hike in price of goods

Kuala Lumpur: The Burger King franchise restaurant was fined RM40,000 by the Sessions Court here Thursday for failure to produce information on the increased price of goods sold at its premises. Judge Zulqarnain Hassan passed the sentence on Cosmo Restaurants Sdn Bhd, the franchise holder of Burger King in Malaysia, after the finance manager who represented the company pleaded guilty to the charge of failure to produce the information on the increased price of products as stated in the notice issued by the Domestic Trade, Cooperatives and Consumerism Ministry (KPDNKK) within three days after the issuance of the notice on April 6.

"As the case is related to the Goods and Services Tax (GST) which involves the interests of the public, the court hereby decided to pass a sentence that can serve as a reminder to other traders to adhere to the KPDNKK's notice," the judge said before passing the sentence.

The company committed the offence at the Burger King premises at No 22, Jalan 24/70A, Desa Sri Hartamas here on April 10, 2015. The charge under Section 21(5) of the Price Control and Anti-Profiteering Act 2011, carries a maximum fine of RM100,000 for the first offence and RM250,000 for subsequent offence.

Deputy public prosecutor Zaileen Nadia Zubir prosecuted, while the company was represented by lawyer Wan Nor Izzati Wan Idris.

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Speaking to reporters outside after the proceedings, Kuala Lumpur KPDNKK Director Muez Abd Aziz said the ministry viewed seriously any violations of the Act by any companies or industry players.

He said the company was the first to be charged in Kuala Lumpur Court after the implementation of GST on April 1.

"The action was taken following public complaint on the increased price of the food sold at the restaurant. So, we issued a notice asking for explanation and information, but the company failed to adhere to the notice.

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"It is hoped that the case will serve as a deterrent to other traders not to raise the price of goods at their whims and fancy to make hefty profit and to always adhere to the notice issued to them," he said.

He said eight investigation papers on increased price of goods had been opened by Kuala Lumpur KPDNKK Office.

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