Overall Complaints Down Amid Upsurge in Online Purchase and Tourist Complaints
Consumer complaints took a slight dip of 1% in the first half of this year, according to statistics released by the Consumer Council today (July 30).
Between January and June 2013, the Council received 13,691 cases of complaints in total compared with 13,894 cases in the corresponding period last year.
In keeping with the continual growth of service industry in Hong Kong, the service sector had a larger share of overall consumer complaints than the goods sector - with 7,368 cases (54%) and 6,323 cases (46%) respectively.
Although the complaints appeared to be quite evenly distributed between the two sectors, the goods sector had, in fact, during the period under review, gone up a notable 20% - not seen in many years since 2005 (+20%), with the exception of 2007 (+2%) and 2011 (+3%) - while the service sector slipped 14%.
This resurgence was primarily attributed to a recent upsurge in complaints involving largely goods in relation to online purchase and tourist shopping amid continual strong growth in these two sectors.
Online Purchase
The first six months of this year saw consumer complaints against online purchase up a hefty 111% to 869 cases compared with 412 cases in the corresponding period last year.
The breakdown showed the dominant complaints arising from online purchases were with computer products (+231%), personal care products (+176%), and travel (+128%). Consumers were dissatisfied mostly over price disputes (+198%), late or non-delivery (+144%).
Non-Delivery
Complaints from online group purchase, during the period under comparison, were roughly the same - although the number last year was a high 2,149 cases due to the closure of one online operator, which alone drew over 1,500 cases.
A large proportion of the complaint cases was related to non-delivery of the goods purchased online but could not be redeemed as promised for reasons of stocks running out or lack of supply - though refund was mostly offered upon request.
Online operators are, therefore, urged to exercise caution to ensure adequate stocks or supply to avoid unnecessary consumer disputes. They may also run the risk of "wrongly accepting payment" which is an offence under the newly amended Trade Descriptions Ordinance.
Tourist Sector
The strong growth in the tourist sector, particularly tourists from the Mainland, saw the number of complaints (1,358 cases) up by 30% between January and June 2013.
Mainland tourist complaints took up a huge slice of the total: 1,124 cases or up 49% (of these, 954 cases from individual travellers and 170 cases from inbound tours) over the corresponding period last year.
Top on the list of mainland tourist complaints were: medicinal products and health foods up a sharp 161% followed by watches (+98%) and telecom equipment and services (+56%). Consumer dissatisfaction was mostly with repair and maintenance service (+109%), sales practices (+77%), and price disputes (+62%).
Price Marking
Common in these two categories of rising complaints was the high incidence of disputes in prices or charges. Complaints arose when consumers discovered that the prices they paid were substantially higher that what the other shops or sellers were charging.
In most cases, such disputes can be traced to the absence of price marking in some retail outlets, giving the shopkeepers the opportunity to price willfully on customers as they see fit.
Or where price marking is available the consumers have not made the effort to shop around for price comparison.
The Consumer Council is supportive of mandatory price marking to increase price transparency and to facilitate price comparison by discerned consumers intent on obtaining value for money.
Sales Practices
Consumer complaints against undesirable sales practices declined 3% in the first half of this year, with 1,654 cases of complaints compared with 1,701 cases in the corresponding period last year.
Top on the list of sectors under complaint were: telecom services/equipment (252 cases), drugs and Chinese herbal medicines (177 cases), photographic equipment (166 cases), broadcasting services (130 cases) and fitness health clubs (126 cases).
The nature of complaints corresponded closely with the prohibitions specified in the amended Trade Descriptions Ordinance (TDO): misleading omissions, aggressive commercial practices, bait advertising, bait-and-switch, and wrongly accepting payment.
The Amendment Ordinance outlawing such unfair trade practices is expected to bring radical changes to the marketplace -over the long term for the better.
The New TDO
Barely a fortnight into operation, the new TDO has generated a new public awareness of unfair trade practices that brought a rash of 14 complaints and 97 enquiries to the Consumer Council.
Declared the Council Chairman, Prof. WONG Yuk Shan, presiding over his first half-yearly review at a press conference today (July 30): "At long last, a new consumer protection regulatory regime has begun.
"It signifies not only the dawn of an important milestone, but also a major victory for the Council in its decades of campaign for a fair trading law, and a fair business environment, in Hong Kong."
The Chairman described the new prohibitions on unfair trade practices under the TDO as a "positive and pragmatic" response to the Council's efforts and recommendations, over the years, for criminal sanctions against a myriad of unfair trade practices in consumer transactions.
Educational Publicity Drive
Stressing the importance of public awareness and understanding of how consumers are protected under the new TDO provisions - a role which the Consumer Council is well placed to play in consumer empowerment - Prof. Wong disclosed that the Council is in its final stage of preparation in mounting a massive educational publicity campaign in the months ahead.
Details of the key events and activities to be produced and held in the multi-media drive across Hong Kong will be announced shortly.
Besides educational publicity support, the Council will be working closely in co-operation with the Customs and Excise Department and Office of the Communications Authority, the principal TDO enforcement agencies, in a new mechanism for complaint referral.
Looking Ahead
The Chairman concluded, "No doubt the Council will be kept very busy with such a full agenda ahead as contained in our new 3-year strategic plan announced earlier on.
"With the continuing support of the Government, our stakeholders, and the consumer public, we are confident in our commitment to bring benefits to the community as a whole and in particular to the betterment of consumer welfare and interests," he added.