‘Jackie Chan’ BaWang shampoo in HK$630m legal lather
A journalist told a HK$630 million defamation hearing yesterday how she came to write an article alleging shampoos advertised by Jackie Chan could cause cancer.
A journalist told a HK$630 million defamation hearing yesterday how she came to write an article alleging shampoos advertised by Jackie Chan could cause cancer.
BaWang International is suing claiming the article by Lam Yu-ting, which appeared on its pages on July 14, 2010, led to a 20 per cent slump in its share price.
Lam, a defence witness for the publisher, said the article was based on the results of laboratory tests carried out on BaWang shampoos and expert opinion.
Benjamin Yu SC, for , read the opening paragraph of the article in Chinese. It alleged the shampoos contained carcinogenic substance 1,4-Dioxane and long-term contact could harm liver function and even cause cancer.
Lam, who now works as a creative writer for Now TV, said: "I based it on the test results … and a conversation with Dr Lau Fei-lung and Dr Lam Hon-wah."
The High Court heard that a "Mr Chan", a BaWang customer, had approached with the claim that the shampoos were carcinogenic. "It was transferred to the current affairs department for a period of time … I could not see any [earlier] stories [on this complaint]," Lam said. "Then I asked [my senior] if further investigation was required."
Her editor asked her to research the claim and see whether it could be turned into a story, Lam added.
The court heard BaWang was claiming HK$630 million for loss of business and advertising expenses incurred restoring consumer confidence.
BaWang's revenue reached 930.8 million yuan (HK$1.17 billion) in the first six months of 2010 and profits rose by 47.1 per cent.
The financial statement "shows how beautiful the prospect of the plaintiff's business was shortly before the publication of this article", said Jason Pow Wing-nin SC, for BaWang.
The hearing continues today.
