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Dishonest sales pitch leads to upsurge in complaints on pay TV services - CHOICE # 358

  • 2006.08.15

What has the forthcoming digital terrestrial TV service in common with the current pay TV service?

The answer is: they are two entirely different services, each having its own mode of operation.

The latest development of TV services has brought more choices to consumers. There are now 4 channels broadcast in analogue format by the 2 existing terrestrial free-to-air TV broadcasters, ATV and TVB, and over 200 channels through the subscription TV services offered by pay TV operators.

Under the Government's plan to launch digital terrestrial TV broadcasting, the 4 free TV channels shall simultaneously be broadcast in both analogue and digital formats from 2007.

Some unscrupulous salesmen of pay TV services have however taken advantage of the lack of technical knowledge of the public over the development of such TV services.

This has brought a deluge of consumer complaints against pay TV services concerning mainly sales practices and subsequent disputes over fees and charges.

The number of complaints on pay TV service received by the Consumer Council has risen from 1,015 cases in 2004, to 2,211 cases in 2005, and 1,689 in the first 7 months of this (2006) year alone, of which 189 concern dispute over channels provided, 141 misleading sales practices.

According to the complainants, they were misled into subscribing to pay TV by salesmen adopting the following dishonest practices:

First, unless they use pay TV service they will not be able to view free TV programmes (or that the reception will become so poor) from 2007 onwards when digital terrestrial TV service comes into operation.

Second, withhold vital information on the service contract or distort certain terms and conditions in order to secure the signature - and transaction - of the unwary consumer.

The fact is the existing pay TV and the future digital terrestrial TV are operating on two different platforms and technologies. Therefore, existing pay TV decoders cannot be used to decode future digital terrestrial TV signals, and vice versa.

Consumers wishing to view digital terrestrial TV programmes need to purchase an integrated digital TV set with a built-in digital decoder or, alternatively, add a digital set-top box connecting it to their existing TV sets. These devices should be available in the market later on.

The truth is that the current free TV service (broadcast in analogue mode) is here to stay - at least for five more years subject to further market and technical studies - after the launch of digital terrestrial TV broadcast.

So, beware of the salesmen who come to sell pay TV service, on the false pretext that it is absolutely necessary in order to receive free TV service or digital terrestrial broadcast on your TV set.

Consumers should pay heed and be alert to the following sales malpractices:

  • Beware of strangers who request to enter your home to check your TV antenna or modem when the devices are working properly. Check their identity with the management office or the pay TV operator. If in doubt, refuse to let the person in.
  • Make sure you understand the terms and scope before signing any document or contract, in particular whether the programmes/channels of your choice are included in the service plan, installation fees, contract period, removal arrangements, and notification period for termination.
  • If the terms and conditions of the service plan are different from what the salesperson has earlier said, ask to write down clearly what has been originally agreed upon, or call the operator to enquire about the details.
  • Do not lightly divulge information of your identity card, bank account or credit card or give photocopies of these documents to the salespersons.
  • Early termination of existing service contract may attract penalty charges contrary to what the salespersons may have told you.

Pay attention to the automatic service renewal clause invariably contained in the contract.

Further, always remind the elderly at home to be careful about strangers and such practices.

Operators are also urged to provide more training and better manage their staff, in order to avoid misconduct of a tiny fraction of their staff who may cause great damage to the reputation of the company. This can also reduce unnecessary disputes between the company and their customers later on.

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