City Council - November 14, 2023 - Minutes (Special) - City of Richmond, BC

1 . BUSINESS LICENCE SUSPENSION - TOKYO BEAUTY (File Ref. No.: 12-8275-06) (REDMS No. 7402771, 7453877, 7457956) Staff provided an overview, highlighting that there were nine products found to be in violation of Health Canada’s rules and regulations in the most recent investigation and this is the third violation since 2019, demonstrating a pattern of non-compliance by Tokyo Beauty. Staff noted that the recommendation is to suspend the business licence for a period of 30 days, effective immediately. Charlene Zhu, Coordination Manager, Tokyo Beauty, shared a letter written by Frank Zhu, CEO, Tokyo Beauty, regarding their business and recent inspections (attached to and forming part of these Minutes as Schedule 1). In reply to a query from Council, Ms. Zhu advised that Tokyo Beauty has approximately 15 employees. In response to queries from Council, staff advised that (i) the report lists specific products seized by Health Canada on multiple occasions as a result of previous investigations, (ii) the noted repeat violations occurred at one specific Tokyo Beauty location, (iii) enforcement action under the Business Licence Act could be taken, the suspension length could be increased or decreased, or the business licence could be cancelled at the discretion of Council, and this particular offense is not finable under the Notice of Bylaw Violation adjudication or Municipal Ticket Information system, (iv) there have been business licence suspensions and cancelations as a result of not adhering to COVID-19 health regulations, (v) a 30-day suspension is past practice and a limited approach, noting that each case is assessed differently and staff weighed the risk to the public, (vi) they were notified of this case through media coverage, (vii) Health Canada’s public advisory noted unauthorized products that were labelled with ingredients that may pose serious health risks, (viii) there are multiple techniques to find business in violation, including open and closed source information, and (ix) a memorandum summarizing Health Canada’s standard operating procedures for repeat violations can be provided. SP 23 /4-1 It was moved and seconded That the business licence for Nagoya Trading Ltd., doing business as Tokyo Beauty, operating from 8191 Westminster Highway Unit 120, Richmond BC, be suspended for a period of 30 days. The question on the motion was not called as in reply to queries from Council, staff indicated that an indefinite suspension would be beyond the scope of permitted condition. Discussion ensued regarding the need for significant suspensions for repeat offences. As a result of the discussion, the following amendment motion was introduced: SP 23 /4-2 It was moved and seconded That the business licence for Nagoya Trading Ltd., doing business as Tokyo Beauty, operating from 8191 Westminster Highway Unit 120, Richmond BC, be suspended for a period of 90 days. The question on the amendment motion was not called as further discussion ensued. The question on the amendment motion was then called and it was CARRIED with Mayor Brodie and Councillors Au and Loo opposed. The question on the main motion as amended, which reads as follows: That the business licence for Nagoya Trading Ltd., doing business as Tokyo Beauty, operating from 8191 Westminster Highway Unit 120, Richmond BC, be suspended for a period of 90 days. was then called, and it was CARRIED with Councillor Au opposed.

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