Retail in Asia

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HK telecommunications industry adopting Industry Code to enhance consumer protection

The Office of the Telecommunications Authority (OFTA), Hong Kong, on Tuesday welcomed the efforts of the Communications Association of Hong Kong (CAHK) in promulgating an Industry Code of Practice for Telecommunications Service Contracts (Industry Code) for adoption by the telecommunications industry.

The Industry Code serves as a guideline for the telecommunications industry in drawing up contracts on telecommunications services with its customers.

"OFTA welcomes the efforts of the CAHK and the participating telecommunications service providers in formulating the Industry Code. OFTA fully supports this collaborative action of the industry to adopt a harmonised practice for drawing up contracts on telecommunications services that is fair, balanced and reasonable for both the consumers and the industry. This initiative demonstrates the responsiveness of the industry in addressing the needs and expectations of the telecommunications service users," a spokesman for OFTA said.

The code includes requirements which align with Hong Kong government’s recent legislative proposal to enhance consumer protection against unfair trade practices through amendments to the Trade Descriptions Ordinance. All the major fixed and mobile network operators and one major external telecommunications services operator in Hong Kong have agreed to follow the Industry Code and will implement the necessary measures in the coming three to six months in preparation for their full adoption of the provisions of the Industry Code for all new contracts in future, according to OFTA.

With a view to protecting consumers’ interest and addressing consumer complaints on contractual matters for communications services, OFTA issued a code of practice on the subject in February this year. The code of practice aims to provide the industry with guidelines on the drawing up of communications service contracts on a voluntary compliance basis. OFTA notes that, in drawing up the Industry Code, CAHK has made close reference to the code of practice issued by OFTA and has incorporated the key measures that OFTA has recommended, taking into account the circumstances specific to the telecommunications industry, the expectations of consumers, and the legislative proposals that have been put out for consultation by Hong Kong government to tackle unfair trade practices.