HKTVmall brand sentiments dip over suspected resale of public hospital drug

HKTVmall has seen a dip in brand sentiments after it suspended one of its online store which allegedly resold public hospital drugs. The product has now been removed and the merchant was requested to provide proof of supply of the drug. 

This comes after a consumer, who claimed to be 38 weeks pregnant at the time, said that she received lactulose with a patient’s name and label stating it was from Hong Kong Buddhist Hospital as she ordered from a merchant on HKTVmall, according to The Standard. 

In a conversation with MARKETING-INTERACTIVE, a spokesperson from HKTVmall said the incident occurred in 2023, when a customer received the order on 29 May and reported the product issue to HKTVmall's customer service on 9 July.  
 
To follow up with this customer feedback, HKTVmall made enquiries to the merchant to request ship details. However, the merchant claimed that the relevant CCTV footage and shipment photos were removed and could not be provided as the shipment was made more than one month ago. Subsequently, HKTVmall handled the case with discretion by arranging for a refund and product recall, said the spokesperson.  
 
HKTVmall is very concerned about an online source indicating that a customer had purchased medication with a public hospital label from one of its merchants.  
 
“We are currently investigating the matter to understand the details fully. As an online shopping mall, HKTVmall absolutely does not allow any merchants to engage in unlawful activities,” the statement reads. 
  
During the investigation, HKTVmall has suspended the corresponding online store, and has requested valid proof of supply from the merchant. “In case of violation, penalties will be levied on the merchant, or termination of contract in serious cases. The merchant will also be held legally responsible for the related liabilities.” 
 
According to the preliminary understanding by the Hong Kong government, the incident involved a pharmaceutical product, Lactulose. It does not contain any substance listed in the Poisons List of the Pharmacy and Poisons Regulations and is a type of "non-poison" medicine which does not require a prescription nor under the supervision of a pharmacist for sale. 
 
The government reiterated that the Department of Health (DH) has an established mechanism to monitor the sale of health and pharmaceutical products in the Hong Kong market, including those through the Internet.  

The DH is liaising with the Hospital Authority to seriously investigate into the alleged case and shall take prompt enforcement action as appropriate. For this specific case, the DH will investigate along the lines of illegal sale of unregistered pharmaceutical products.  

Dip in brand sentiments

This has drawn mixed reactions from netizens as media intelligence firm CARMA observed over 500 mentions concerning the incident. Among these mentions, 37.7% conveyed a negative sentiment, while merely 1% expressed a positive sentiment.

"Before the incident, HKTVmall boasted a positive sentiment of 26.4% and a negative sentiment of 12.9%. However, post-incident, the positive sentiment dwindled to 14.3%, while the negative sentiment surged to 28.9%," said CARMA's HK GM Charles Cheung. 

Notably, a LIHKG thread garnered over 300 posts where users recounted their encounters with counterfeit items from HKTVmall and discussed the loophole in public hospitals facilitating easy access to medications, said Cheung. 

"Conversely, some netizens turned to HKTV Mall's official Facebook page to seek clarification on this incident. The page's administrator responded with a comprehensive explanation of the event, which was well-received by the netizens," he added.

How can HKTVmall restore consumer confidence?

The incident has raised concerns among the public and within the medical sector as it is illegal to sell a medicine with a public hospital patient's label online.

So Yiu-wah, president of the Society of Hospital Pharmacists of Hong Kong, said on a RTHK programme that lactulose does not require a doctor's prescription, but the drug has to be sold by a registered pharmacist.

He was shocked as it was the first time he heard that the medicine was sold on eCommerce platforms and sold with a public hospital patient's tag on it, which is illegal. 

On the PR front, David Ko, managing director, RFI Asia believed the incident wont have a significant long-term impact on HKTVmall's brand as this is an isolated incident that happened in one of the numerous shops hosted on the online eCommerce platform.

"However, they do need to take a serious look at their current vetting process for admitting online merchants onto their platform. If there is a consistent pattern of these incidents happening, then that will be cause for concern," he added.

As a gatekeeper to ensure product safety, HKTVmall should monitor the source of products sold online, especially the sale of health and pharmaceutical products, said Celine Cheung, account director of RSVP Communications. 

From a customer experience perspective, transparency is also key. Kevin Kan, chief experience officer, Break Out Consulting Asia, questioned: "How can a customer trust that the dispensed medication is safe and from a reputable source? The stress and worry of an ill customer will get heightened if they are unsure of the the medications source."

"HKTVmall needs to be transparent now to enable customer recovery. Why did the merchant source the medication from the hospital? Was it due to supply issues? Was it a cheaper source? Just be transparent to regain customer trust," he added.

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