Secret Recipe CEO fined RM45k for profiteering
Published on: Saturday, September 10, 2016
SHAH ALAM: The Chief Executive Officer of Kumpulan Secret Recipe Cakes and Cafe Sdn Bhd was fined RM45,000 by the Sessions Court here for profiteering.Judge Ahmad Azhari Abdul Hamid imposed the fine after Sim Leong Thun, 57, pleaded guilty to the three charges made against him in his capacity as an individual.Sim was charged with raising the price of the Pepsi drink at the Secret Recipe Cakes and Cafe, Subang Parade branch, Subang Jaya, from RM4 to RM5 from Feb 23, 2015, based on the price tag exhibited.
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He was charged with profiteering as the price increase raised the net profit margin of the drink by 24 sen per unit, from 77 sen to RM1.01.On the second and third charge, Sim was charged with profiteering over the price of a drink and a food item at the Secret Recipe Kuala Kubu Bharu branch, Jalan Mat Kilau, Kuala Kubu Bharu, near here, from Feb 23, 2015, based on the prices that were exhibited at the premises.He was charged with increasing the price of the Iced Caffe Latte from RM7.80 to RM9, hence raising the net profit margin by 13 sen, from RM1.76 to RM1.89 for each unit.Sim was also charged with raising the price of Lasagna Beef from RM16.50 to RM19 and was charged with profiteering by increasing his net profit margin from RM3.72 to RM4 a unit.
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The charges were made under Section 14(1) of the Price Control and Anti-Profiteering Act 2011 which provides a maximum fine of RM500,000, and for the second and subsequent offences, a maximum fine of RM1 million, if found guilty.Earlier, Sim, who was not represented, appealed to the court to reduce the fine, citing a drop in profit by the company.
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