The Consumer Council received 27,327 consumer complaint cases in 2012, as compared with 27,541 cases in 2011 and an encouraging downward trend from 29,048 cases in 2010. For the first time, complaints in relation to food & entertainment services ranked second on the list mainly due to problems in online group purchase. Furthermore, high number of 3,779 cases involving sales practices remains one of the Council's major concerns.
Five major complaint categories
Complaints on telecommunications services decreased 8% though continuing to top the list at 6,657 cases, followed by food and entertainment services (2,558 cases) which saw a surge of 163%. The complaints on telecommunications services mainly involved price and charges disputes (3,273 cases), while dissatisfaction on food and entertainment services were mainly caused by invalid redemption of dining coupons sold online. As a result of the closure of a number of restaurants in early 2012, the dining coupons sold through online group purchase became invalid.
Complaints about telecommunication equipment went up by 13% to 1,952 cases, electrical appliances up by 2% to 1,537 cases, furniture and fixtures was down by 12% to 1,276 cases.
Categories with notable reduction
Consumer complaints on recreation/health clubs and photographic equipment recorded a significant drop in 2012, with the former down by 44% to 397 cases while the latter down by 22% to 603 cases.
In reviewing Council's work in the year 2012, Professor Wong Yuk-shan, Chairman of the Consumer Council, attributed the decrease to the continued effort of the Council in consumer education, and the growing awareness among local consumers towards the undesirable sales practices of some traders.
Online group purchase
Consumer dissatisfaction over online group purchase of goods and services was on the rise during the year. The Council received 2,667 complaints under this category, an increase of 387% from 548 cases in 2011.
More than 60% of the complaints involved food and entertainment services (1,637 cases), mainly concerning non-redeemable dining coupons or unsuccessful booking. Online group purchase in areas like beauty treatments and health club vouchers (294 cases), clothing and personal care products (160 cases), electrical appliance, computer and telecommunication equipment (110 cases) also recorded an increase in consumer disputes.
The major consumer complaints in online group purchase were related to failure or delay in the delivery of goods or services, goods delivered not correspond to description or high pressure sales tactics forcing consumers to purchase expensive packages.
Online group purchase is growing popular due to attractive discounts and convenience offered. However, Professor Wong reminded consumers to assess their needs carefully and rationally before making purchase online and avoid over-consumption due to impulse purchase.
Purchase portals, on the other hand, should have the responsibility to scrutinize traders carefully before marketing their products or services to the consumers.
Beauty service
In view of the tragic medical beauty incidents, the Council urges the government to put in place an effective regulatory framework for medical beauty treatments as soon as possible to protect consumer safety.
In 2012, the Council received 1,041 consumer complaints involving beauty services, an increase of 17% from the previous year.
Complaints related to laser/IPL beauty services as well as plastic surgery/injection treatment marked an alarming growth, with the former rose from 78 cases in 2011 to 129 case in 2012 (+65%) and the latter from 12 cases in 2011 to 32 cases in 2012 (+167%).
Undesirable sales practices
Complaints statistics revealed that undesirable sales tactics in certain trades deserved a much closer scrutiny.
Among the complaints lodged with the Council, 3,779 cases (14%) involved undesirable sales practices in various forms. The common tactics employed by unethical traders are bait-and-switch, false/misleading representation and harassment.
Statistics showed telecommunication services, broadcasting services, photographic equipment, beauty services and recreation/health clubs were the categories topped the list of undesirable sales practices.
The Council is of the opinion that the situation warrants stronger law enforcement and with the implementation of the Trade Descriptions (Unfair Trade Practices) (Amendment) Ordinance (the Ordinance) later this year, malpractices such as misleading omissions, aggressive commercial practices, bait advertising, bait-and-switch and wrongly accepting payment could be liable for criminal offences.
To enhance consumers' awareness in respect of their rights under the Ordinance, the Council plans to carry out a wide range of education programmes and will work closely with law enforcement agencies in areas such as case referral and market information exchange.
Tourists have fewer complaints
Last year the Council saw a drop of 8% in tourist complaints to 2,157 cases, and complaints from mainland individual travellers fell by 6% to 1,597 cases.
Although the Council observed a drop in consumer complaints relating to some of the most frequently purchased items from mainland visitors in Hong Kong: computers 72 cases (-31%) photographic equipment 288 cases (-27%), ginseng and Chinese herbs 78 cases (-22%), there was a notable increase in the category of medical equipment and health food, up 29% to 160 cases. Most of the complaints involved the quality of Chinese patent medicine, drug and health supplement.
Accomplishment in different fronts
Late last year, all the assisted consumers of the Consumer Legal Action Fund in One Beacon Hill case finally reached a settlement with the developer. The 11 flat owners were fully compensated with a collective total sum of HK$3.59 million due to the delay in completion of the property by the developer. The judicial ruling on the preliminary issue concerning the validity of the purported settlement agreement regarding the sale of car park at HK$1 clearly exposed the unfair practice adopted by the developer concerned.
The passage of three important consumer protection statutes long advocated by the Council marked the triumph of the Council in its campaign for better consumer protection. The Competition Ordinance facilitates the healthy growth of the market, the Residential Properties (First-hand Sales) Ordinance provides a legal framework to protect first-hand residential property buyers, and the Trade Descriptions (Unfair Trade Practices) (Amendment) Ordinance prohibits unfair trade practices in different important aspects in the process of the sales of goods and services.
The Council also responded to various consultations from the government and other public bodies. A total of 26 submissions were made in 2012.