The government has declared its determination to enhance protection of consumer rights by mounting a concerted campaign against deceptive sales practices, and even criminalizing some sales malpractices, Rita Lau, secretary for Commerce and Economic Development, said Friday.

Lau made the points at a Legislative Council (LegCo) panel meeting to highlight the policy areas of her portfolio under the 2010-11 Policy Address.

One of the areas to be targeted with new legislation are pyramid selling schemes, Lau said.

She said the government is set to publish a consultation paper. Then there will be a public consultation prior to introduction of amendments to the Pyramid Selling Prohibition Ordinance.

Public consultation is already underway to find means to address unfair trade practices. The Trade Descriptions Ordinance at present prohibits vendors of goods from providing false descriptions. The government intends to broaden the ordinance to cover services as well, Lau said.

A list of common sales malpractices will become subject to criminal sanctions. The shady practices the government intends to target include overly aggressive sales presentation, the bait and switch tactic, and accepting payment without the intention or the ability to provide goods or services contracted by the agreement.

Lawmaker Lee Wing-tat cited his concern over this year's spate of failures among yoga schools. He raised an objection to the practice employed by the companies of asking customers for full payment in advance, then ceasing company operations. Some principals of the business had disappeared, he said.

Lawmaker Starry Lee raised his objections to demands for prepayment by beauty care and slimming services. He called for a cooling-off period for contracted services in those two fields, giving consumers the right to change their minds.

Lau responded that imposition of a cooling-off period depends on the findings of public consultation. The cooling-off period should not, however, target particular industries, she added.

On the matter of planned exemptions from the Competition Law, Lau said she is preparing a preliminary list of 500 statutory bodies which would be exempt from competition legislation, if they meet a list of specified circumstances. Consultation with stakeholders is ongoing, she said, particularly with small and medium sized enterprises.

Panelist Ronny Tong praised the work of drawing up the exemption list but asked Lau to include criteria and justifications for providing exemption or not providing exemptions to the organizations in the list.

Pending summary of public views, the government will introduce legislative amendments to the current laws within the 2010-11 legislative session.

On the subject of the troubled tourist industry, Lau said she believes there must be a thorough review. She said the review should take into account industry practices as well as revisions to the licensing system for guides in order to improve the quality of services. Those comments come in the wake of several widely reported incidents concerning the conduct of tour guides toward visitors to Hong Kong.

China Daily

(HK Edition 10/16/2010 page1)