The Customs & Excise Department and the Office of the Communications Authority today launched a public consultation on the draft Enforcement Guidelines concerning the Trade Descriptions (Unfair Trade Practices) (Amendment) Ordinance 2012.

The amendment, enacted on July 17, enhances the existing Trade Descriptions Ordinance by prohibiting specified unfair trade practices that may be deployed by traders against consumers, and strengthens the enforcement mechanism.

Speaking at a press conference, Commissioner of Customs & Excise Clement Cheung said the consultation will solicit views from stakeholders, business sectors and the general public on the draft enforcement guidelines.

The guidelines set out the manner in which the two enforcement agencies will exercise their powers under the new fair trading sections of the amendment, and provide guidance on compliance with the provisions by traders.

Key amendments include the expansion of the definition of trade descriptions in relation to goods, as well as an extension of scope to cover services; the creation of new criminal offences on unfair trade practices, namely misleading omissions, aggressive commercial practices, bait advertising, bait-and-switch and wrongly accepting payment; the introduction of a civil compliance-based enforcement mechanism in addition to criminal sanctions to promote adherence to the ordinance; and, the creation of a new private right of action for damages to facilitate consumer redress.

The department is the principal agency responsible for enforcing the new fair trading sections. Concurrent jurisdiction is conferred on the Communications Authority to enforce the new fair trading sections in relation to the commercial practices of licensees under the Telecommunications and Broadcasting Ordinances, which are directly connected with the provision of telecommunications or broadcasting services under the relevant laws. 

When the amendment starts operation, the existing provision under the Telecommunications Ordinance concerning prohibition of misleading or deceptive conduct of telecommunications licensees will be repealed, and enforcement against such conduct will be made under the new cross-sector regime.

The amendment is scheduled to come into operation by the second quarter of next year.

Comments on the draft guidelines should be submitted by email by January 17.