"When a deal looks too good to be true, well, it usually is," said Massey University Associate Professor in Marketing Henry Chung, a China market specialist.
"It can be hard for those who don't know much about sea cucumbers to tell the difference, but when the price is too cheap, then it's very likely that it's not the real thing."
Chung said sea cucumbers are "highly valued" in Asia, where many consider them to be a nutritious delicacy with health benefits.
"In these markets, price is not a key issue and people are prepared to pay top dollars for safety and quality," he said.
"Sea cucumbers is a lucrative, but still very new export product for New Zealand, and what is happening could well damage our reputation."
The sea cucumber market in Asia is estimated to be around $81 million, and the dried form accounts for 95 per cent of those traded annually in the region.
Jimmy Kouk, a New Zealand sea cucumber product exporter, lodged a complaint with the commission after finding the falsely-labelled sea cucumbers being sold on local Chinese websites.
Kouk, a director of Shark 8 Seafood, said he believed most are being sold to buyers in China, who are being deceived into thinking they are getting premium New Zealand sea cucumbers for a bargain.
A 500g pack he purchased for $400 as evidence were smaller and darker than the New Zealand sea cucumbers processed at his factory.
From looking at pictures of the specimen, aquaculture scientist Leonardo Zamora said they were unlikely to be the New Zealand species.
"If they have not being really fished here in New Zealand then a likely source would be the multispecific tropical sea cucumber fisheries, which in terms of traceability is pretty bad," said Zamora, a sea cucumber expert.
"The Asian origin cannot be discarded entirely either."
Zamora's scientific study of sea cucumber found the New Zealand species to be "highly suitable" for global markets.
Research at the University of Auckland identified that they contained a range of bioactives, including anti-inflammatory compounds - health-giving benefits expected by Asian consumers of sea cucumbers.
Sea cucumber wholesaler Duncan Wong, of Belkee Marine Products, had been assisting the commission with its investigation.
"We do not label the imported sea cucumbers as New Zealand products," Wong said.
"The 'made in NZ' sticker is sold everywhere, so we cannot control what people do after they buy from us."
A Commerce Commission spokeswoman said it had been in contact with the trader.
We have...raised our concerns with them," she said.
"We do not intend to further investigate this matter at this time."
The Consumers' right to know (Country of Origin of food) Bill is currently before a Select Committee.
