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Enforcement of Consumer Law in Hong Kong

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Enforcement and Effectiveness of Consumer Law

Part of the book series: Ius Comparatum - Global Studies in Comparative Law ((GSCL,volume 27))

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Abstract

The consumer law policy of Hong Kong has transformed over the last few decades owing to rapidly changing concerns and developing economy. While there is no principal statute on consumer protection, there are a number of separate and independent pieces of legislation. In terms of enforcement, the Courts play a significant role along with specialized agencies and private agencies. Class action is unavailable and consumers can only seek collective redress by means of representative proceedings. The Consumer Council, while not a law enforcement body, contributes by researching on consumer matters, educating the public and providing aggrieved consumers a platform to resolve disputes with traders. As there is no consumer rights body that can pursue claims on behalf of aggrieved consumers, an enforcement body should be set up to take representative actions. The government should be more proactive to emerging consumer issues and make financial assistance more accessible to eligible applicants.

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Notes

  1. 1.

    Census and Statistics Department, ‘Population’ (Census and Statistics Department, 19 December 2016) www.censtatd.gov.hk/hkstat/sub/so20.jsp.

  2. 2.

    Consumer Council, Landmark Events of the Council in 40 Years, in Consumer Council Annual Report 2014–2015, www.consumer.org.hk/sites/consumer/files/yearbook/2014/AnnualReport%201415_1.pdf.

  3. 3.

    Ibid.

  4. 4.

    Ibid.

  5. 5.

    Ibid.

  6. 6.

    The Residential Properties (First-hand Sales) Ordinance (Cap 621) came into effect in 2013 and contained provisions on sales brochures, price lists, show flats, disclosure of transaction information, advertisements, sales arrangements and certain mandatory provisions in agreements for sale and purchase.

  7. 7.

    The Competition Ordinance (Cap 619), which came into full operation in 2015, aims to bring a cross-sector competition regime that prohibits a range of anti-competitive practices in Hong Kong. The term “consumers” is mentioned in the Competition Ordinance: s 21 and sch 1. Furthermore, it was the view of the Competition Commission that the Ordinance will bring “the benefits of a level-playing field to Hong Kong consumers, businesses and the wider economy’: Competition Commission, Competition Ordinance Comes Into Full Effect Today (2015) www.compcomm.hk/en/media/press/files/Competition_Ordinance_Comes_into_Full_Effect_Today_EN.pdf. The term “consumers” is also mentioned in the guidelines published by the Competition Commission: see, e.g., the Guidelines to the Applications for a Decision under Sections 9 and 24 (Exclusions and Exemptions) and Section 15 Block Exemption Orders (27 July 2015), para 1.2.

  8. 8.

    Consumer Council, Landmark Events of the Council in 40 Years, in Consumer Council Annual Report 2014–2015.

  9. 9.

    Ibid.

  10. 10.

    The Hong Kong government is considering enhancing protection in this aspect in response to the recent growing number of complaints against a gym chain for deploying aggressive sale tactics: C Lau. ‘Hong Kong chief executive looks to improve consumer protection in wake of California Fitness collapse’ South China Morning Post (14 July 2016) www.scmp.com/news/hong-kong/law-crime/article/1989868/hong-kong-chief-executive-looks-improve-consumer-protection.

  11. 11.

    Commerce, Industry and Tourism Branch, Commerce and Economic Development Bureau, ‘Consumer Protection’ (Commerce, Industry and Tourism Branch, Commerce and Economic Development Bureau, 2017), www.cedb.gov.hk/citb/en/Policy_Responsibilities/consumer_protection.html.

  12. 12.

    Legislative Council Panel on Economic Development, ‘2015 Policy Address Policy Initiatives of the Commerce, Industry and Tourism Branch, Commerce and Economic Development Bureau’ LC Paper No. CB(4)363/14-15(04).

  13. 13.

    See, e.g., the Law Reform Commission of Hong Kong, ‘Report on the Control of Exemption Clauses’ (1986) www.hkreform.gov.hk/en/docs/rexemption-e.pdf.

  14. 14.

    Consumer Council, ‘Hong Kong Consumer Protection Legislations’(Consumer Council, 2015). www.consumer.org.hk/ws_en/legal_protection/hk_consumer_protection_legislations/Index.html.

  15. 15.

    See Hang Seng Credit Card v Tsang Nga Lee [2000] 3 HKC 269 where the provisions concerned are credit card agreements indemnity costs provisions. The court held the agreement to be unconscionable, having considered the bank’s bargaining position, the standard form of agreements, and the extortionate interest rate.

  16. 16.

    See Shum Kit Ching v Caesar Beauty Centre Ltd [2003] 3 HKC 235 in which the Court cited Chitty on Contracts (28th ed, 1999) vol 1, para7-078.

  17. 17.

    Mason (2014), p. 85.

  18. 18.

    Consumer Council, ‘Report on Unfair Terms in Standard Form Consumer Contract’ (Consumer Council, 2012) www.consumer.org.hk/sites/consumer/files/competition_issues/20130304/2012040301Full_en.pdf.

  19. 19.

    南洋商業銀行有限公司及另一人對黃永光及另一人HCA 19541/1999, para 106.

  20. 20.

    Unconscionable Contracts Ordinance, s 5. See, e.g., Cheung Kam Sing & Another v International Resort Developments Ltd [2003] 2 HKLRD 113 where the court refused to enforce an unconscionable contract. It did apply section 5(1) of the UCO, more specially section 5(1)(a), by rescinding the contract after finding it unconscionable.

  21. 21.

    L Mason, ‘Hong Kong consumers deserve fairer deal in goods and services contracts’ (South China Morning Post, 14 July 2014) www.scmp.com/comment/article/1553978/hong-kong-consumers-deserve-fairer-deal-goods-and-services-contracts.

  22. 22.

    Mason (2014), p. 93.

  23. 23.

    Ibid.

  24. 24.

    Consumer Council, ‘Unfair Terms in Standard Form Consumer Contract (Full Report)’ (Consumer Council, April 2012), www.consumer.org.hk/website/ws_en/competition_issues/model_code/2012040301FullText.html.

  25. 25.

    Legal Aid Scheme, ‘Ordinary Legal Aid Scheme’ (Legal Aid Scheme, 29 December 2016) www.lad.gov.hk/eng/las/civil/olas.html.

  26. 26.

    Ibid.

  27. 27.

    Consumer Council, ‘History of Council’ (Consumer Council, 2015) www.consumer.org.hk/ws_en/history.

  28. 28.

    Consumer Council, ‘Frequently Asked Questions’ (Consumer Council, 2015) www.consumer.org.hk/ws_en/faq.

  29. 29.

    There are official statistics on the number of consumer complaints: see Consumer Council, ‘Complaints Statistics’ (Consumer Council, 16 December 2015) www.consumer.org.hk/ws_en/statistics/complaints.

  30. 30.

    Consumer Council, ‘Consumer Council Annual Report 2014–15’ (Consumer Council, 2015), p 17 www.consumer.org.hk/sites/consumer/files/yearbook/2014/AnnualReport%201415_1.pdf.

  31. 31.

    Ibid.

  32. 32.

    Ibid.

  33. 33.

    Consumer Council, ‘Consumer Council Annual Report 2004-05’ (Consumer Council, 2005), p. 18 www.consumer.org.hk/sites/consumer/files/yearbook/2004/AnnualReport20042005PDF.pdf; Consumer Council, ‘Consumer Council Annual Report 2005-06’ (Consumer Council, 2006), p. 20 www.consumer.org.hk/sites/consumer/files/yearbook/2005/CCAR2005-2006.pdf; Consumer Council, ‘Consumer Council Annual Report 2006-07’ (Consumer Council, 2006), p. 12 www.consumer.org.hk/sites/consumer/files/yearbook/2006/PDF20062007_0.pdf; Consumer Council, ‘Consumer Council Annual Report 2007-08’ (Consumer Council, 2008), p. 14 www.consumer.org.hk/sites/consumer/files/yearbook/2007/pdf20072008_0.pdf; Consumer Council, ‘Consumer Council Annual Report 2008-09’ (Consumer Council, 2009), p. 20 www.consumer.org.hk/sites/consumer/files/yearbook/2008/pdf20082009a_0.pdf; Consumer Council, ‘Consumer Council Annual Report 2009-10’ (Consumer Council, 2010), p. 22 www.consumer.org.hk/sites/consumer/files/yearbook/2009/pdf20092010_0.pdf; Consumer Council, ‘Consumer Council Annual Report 2010-11’ (Consumer Council, 2011), p. 21 www.consumer.org.hk/sites/consumer/files/yearbook/2010/ar20102011-3_0.pdf; Consumer Council, ‘Consumer Council Annual Report 2011-12’ (Consumer Council, 2012), p. 19 www.consumer.org.hk/sites/consumer/files/yearbook/2011/03_0.pdf; Consumer Council, ‘Consumer Council Annual Report 2012-13’ (Consumer Council, 2013), p. 16 www.consumer.org.hk/sites/consumer/files/yearbook/2012/03_0.pdf; Consumer Council, ‘Consumer Council Annual Report 2013-14’ (Consumer Council, 2014), p. 20 www.consumer.org.hk/sites/consumer/files/yearbook/2013/03_0.pdf; Consumer Council, ‘Consumer Council Annual Report 2014-15’ (Consumer Council, 2015), p. 17 www.consumer.org.hk/sites/consumer/files/yearbook/2014/AnnualReport%201415_1.pdf.

  34. 34.

    See footnote 65 above.

  35. 35.

    Consumer Council, ‘Overall Consumer Complaints Down 12% amidst Travel Complaints Rising 41%’ (Consumer Council, 2 February 2016) www.consumer.org.hk/ws_en/news/press/2015/yearender.html.

  36. 36.

    Ibid.

  37. 37.

    Consumer Council, ‘3-YEAR STRATEGIC PLAN - New Goals, Strategies and Initiatives Unveiled’ (Consumer Council, 30 May 2013) www.consumer.org.hk/ws_en/news/press/20130530.html.

  38. 38.

    See footnote 65 above, p. 6.

  39. 39.

    Ibid.

  40. 40.

    Travel Industry Council, ‘Advice for Travellers – Inbound Travellers’ (Travel Industry Council of Hong Kong, undated) www.tichk.org/public/website/en/travellers/in_advice/html.

  41. 41.

    Ibid.

  42. 42.

    Travel Industry Council, ‘Code of Conduct for Members – Preamble’ (Travel Industry Council of Hong Kong, undated) www.tichk.org/public/website/en/codes/codes_of_conduct/part_one/html.

  43. 43.

    The Hong Kong Federation of Insurers, ‘The Code of Conduct for Insurers’ (The Hong Kong Federation of Insurers, undated) www.hkfi.org.hk/pdf/en/download/e_abt.code.pdf.

  44. 44.

    The Insurance Claims Complaints Bureau, ‘Powers of the Complaints Panel’ (The Insurance Claims Complaints Bureau, 2006) www.iccb.org.hk/en_powercomplaints.htm.

  45. 45.

    The Insurance Claims Complaints Bureau, ‘Complaints Handling Procedures’ (The Insurance Claims Complaints Bureau, 2006) www.iccb.org.hk/en_complaintshandling.htm.

  46. 46.

    The Law Reform Commission of Hong Kong, ‘Report on Class Actions’ (May 2016), ch 1, www.hkreform.gov.hk/en/docs/rclassactions_e.pdf.

  47. 47.

    Pan Atlantic Insurance Co. and Republic Insurance v Pine Top Insurance Co [1989] 1 Lloyd’s Rep 568.

  48. 48.

    See footnote 92 above.

  49. 49.

    See, e.g., Sales of Goods Ordinance (Cap 26), section 52; Consumer Goods Safety Ordinance (Cap 456), section 28; Money Lenders Ordinance (Cap 163), section 32; Undesirable Medical Advertisements Ordinance (Cap 231), section 6; Travel Agents Ordinance (Cap 218), section 48.

  50. 50.

    Gas Safety Ordinance (Cap 51), section 32; Pesticides Ordinance (Cap 133), section 18; Weights and Measures Ordinance (Cap 68), pt VI.

  51. 51.

    Electricity Ordinance (Cap 406), section 41; Money Lenders Ordinance (Cap 163), section 32; Estate Agents Ordinance (Cap 511), section 55.

  52. 52.

    Toys and Children’s Products Safety Ordinance (Cap 424), section 31; Consumer Goods Safety Ordinance, sections 6, 22.

  53. 53.

    Money Lenders Ordinance (Cap 163), sections 29, 32; Pawnbrokers Ordinance (Cap 166), section 6; Pesticides Ordinance (Cap 133), section 17; Travel Agents Ordinance (Cap 218), section 48; Estate Agents Ordinance (Cap 511), section 55.

  54. 54.

    Chinese Medicine Ordinance (Cap 549), section 107; Weights and Measures Ordinance (Cap 68), section 32.

  55. 55.

    Financial Dispute Resolution Centre, ‘Financial Dispute Resolution Scheme’ (Financial Dispute Resolution Centre, 2015) www.fdrc.org.hk/en/html/aboutus/aboutus_fdrs.php.

  56. 56.

    Consumer Council, ‘Council Names California Fitness for Aggressive Sales Practices Calls for Cooling-off Period to Safeguard Consumer Rights’ (Consumer Council, 28 April 2016) www.consumer.org.hk/ws_en/news/press/fitness.html.

  57. 57.

    Consumer Council, ‘Beauty Salon Named for Unscrupulous Sales Tactics’ (Consumer Council, 13 February 2012) www.consumer.org.hk/ws_en/consumer_alerts/malpracticesshoplist/20120213.html.

  58. 58.

    Consumer Council, ‘Naming 2 AV shops in Tsimshatsui’ (Consumer Council, 9 August 2011) www.consumer.org.hk/ws_en/consumer_alerts/malpracticesshoplist/20110809.html.

  59. 59.

    See Consumer Council, ‘Fairness in the Marketplace for Consumers and Business – Executive Summary’ (February 2008) para 7, www2.consumer.org.hk/2008022501/exec_sum_e.pdf cited in Mason (2014), p. 90.

  60. 60.

    Mason (2014), p. 90.

  61. 61.

    Consumer Council, “Advocating for Establishing a ‘Consumer Dispute Resolution Centre’ to achieve triple wins in consumer dispute resolution for Hong Kong” (Consumer Council, 31 August 2016) p 1, www.consumer.org.hk/sites/consumer/files/competition_issues/20160831/summary_e.pdf.

  62. 62.

    Ibid.

  63. 63.

    Ibid., pp. 79–80.

  64. 64.

    Ibid., p. 86.

  65. 65.

    Ibid., pp. 91–92.

  66. 66.

    Consumer Council, ‘Policy & Research’ (Consumer Council, 2015) www.consumer.org.hk/ws_en/competition_issues/international_best_practices.

  67. 67.

    Consumer Council, ‘Hong Kong Consumer Council’s Comments on the OECD’s Draft G20 High-level Principles on Financial Consumer Protection Public Consultation’ (Consumer Council, 26 August 2011) www.consumer.org.hk/ws_en/competition_issues/policy_position/2011082601.html.

  68. 68.

    Consumer Council, ‘Consumer Council Good Corporate Citizen’s Guide’ (Consumer Council, 15 March 2005) www.consumer.org.hk/ws_en/competition_issues/model_code/2005031501.html.

  69. 69.

    South China Morning Post, ‘Consumers in Hong Kong deserve stronger laws to protect their interests’ (South China Morning Post, 19 August 2015) www.scmp.com/comment/insight-opinion/article/1850607/consumers-hong-kong-deserve-stronger-laws-protect-their.

  70. 70.

    The Hong Kong Law Reform Committee, ‘Report on Civil Liability for Unsafe Products: Administration’s response’ (The Hong Kong Law Reform Committee, November 2010) www.hkreform.gov.hk/en/news/newsArchiveXML.htm?newsDate=2010&selectedSubSection=4&jumpToDetails=#unsafe.

  71. 71.

    Consumer Council, ‘Consumer Council Ordinance Review – Submission of the Consumer Council’ (Legco, February 2001), paras 4(1) and 4(2) www.legco.gov.hk/yr00-01/english/panels/es/papers/a1046e01.pdf.

  72. 72.

    Consumer Council, Advocating for Establishing a “Consumer Dispute Resolution Centre” to achieve triple wins in consumer dispute resolution for Hong Kong (Consumer Council, 31 August 2016).

  73. 73.

    There have been, on average, only two or three successful applications per year since 1995: see Law Reform Commission of Hong Kong (n 95), para 8.117.

  74. 74.

    Mason (2014), p. 92.

Reference

  • Mason L (2014) Inadequacy and ineffectuality: Hong Kong’s consumer protection regime against unfair terms in standard form contracts. Hong Kong Law J 44:85

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Authors and Affiliations

  1. City University of Hong Kong, Hong Kong, China

    Vivian Tang

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  1. Department of Law, Badia Fiesolana, European University Institute, San Domenico di Fiesole, Italy

    Hans-W. Micklitz

  2. Faculty of Law, McGill University, Montreal, Québec, Canada

    Geneviève Saumier

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Tang, V. (2018). Enforcement of Consumer Law in Hong Kong. In: Micklitz, HW., Saumier, G. (eds) Enforcement and Effectiveness of Consumer Law. Ius Comparatum - Global Studies in Comparative Law, vol 27. Springer, Cham. https://doi.org/10.1007/978-3-319-78431-1_13

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