The founder and a director of KK Super Mart convenience stores in Malaysia were charged on March 26 with "wounding the religious feelings of others" over the sale of socks printed with the word "Allah".
KK Super Mart's vendor, Xin Jian Chang, was charged with abetment.
KK Super Mart founder Chai Kee Kan, 57, and his wife Loh Siew Mui, 53, who is also the company's director, pleaded not guilty before Judge Muhammad Anas Mahadzir at the Shah Alam sessions court.
They were charged under Section 298 of the Penal Code, which provides for imprisonment of up to one year, a fine, or both, upon conviction.
Meanwhile, Xin Jian Chang directors Soh Chin Huat and Koh Lee Hui were charged under Section 109 of the Penal Code for abetment as the supplier of the socks.
The two could be jailed for up to a year or given a fine, or both, if found guilty.
Judge Anas set bail at RM10,000 for all four accused, and fixed April 29 for the case to go on trial.
The controversy first broke online on March 13, spurring calls for a boycott after the made-in-China socks were found in several outlets of the 24-hour chain.
The socks angered Muslims because the word "Allah", the Arabic word for God, is considered sacred.
Malaysia's King, Sultan Ibrahim Iskandar, on March 19 waded into the issue and demanded "stern action" against those responsible.
Since the controversy started, the directors of the stores have apologised publicly twice, and the cash registers and electronic signboards at its 800 shops across Malaysia have also displayed an apology.
KK Super Mart has sued supplier Xin Jian Chang for at least RM31 million (S$8.8 million) over loss of profits, brand damage and an aborted listing on the stock market, among other damages.
Xin Jian Chang has said it is considering legal action against its China supplier for negligence, as the Malaysian company had not ordered the socks, but they were mistakenly sent as part of a consignment.
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This article was first published in The Straits Times. Permission required for reproduction.