Stiff penalty: B.C. sex shop fined $1M for selling Viagra and Cialis as natural health products

Yan (Andy) Zhang, the owner of four Lower Mainland sex shops, recently faced a landmark decision in which his company, MFH International Enterprise Incorporated, was fined $1 million for advertising, packaging, and selling disguised erectile dysfunction drugs as “natural health” remedies. The products, named Harmony and Passion Fem, were marketed as traditional herbal formulas but were found to contain prescription drugs such as Cialis and Viagra.

During the trial, Zhang claimed that he took Harmony almost daily and experienced no adverse reactions. However, the court found that the products contained three times the recommended dose of tadalafil (Cialis) and significant quantities of sildenafil (Viagra), posing serious health risks to consumers. The judge, Bonnie Craig, emphasized the importance of consumers being informed about the ingredients in the products they consume to ensure proper treatment in case of adverse reactions.

The case against MFH International involved allegations of false and misleading advertising, as well as a lack of due diligence in verifying the contents of the products sold in their stores. Despite Zhang’s claims of innocence, the court found him to be an unreliable witness and held the company accountable for the deceptive practices.

At sentencing, the Crown sought a fine of $1.75 million and two years of probation, while MFH argued for a lower fine ranging from $370,000 to $550,000. However, Judge Craig determined that the company’s culpability fell on the higher end of the spectrum, considering the significant profits they stood to make from selling the disguised drugs at inflated prices.

In addition to the monetary penalty, MFH International is required to publish a public notice warning consumers about the health risks associated with Harmony and Passion Fem. The judge also noted that the company’s financial viability was not as dire as claimed by Zhang, as they were owed $1.8 million by another business owned by Zhang’s wife.

Overall, the case serves as a precedent-setting decision in Canada, highlighting the importance of transparency and truthfulness in marketing and selling health products. Consumers must be able to trust that the products they purchase are safe and accurately labeled, to avoid potential harm or complications in their health.