The year 2013 saw consumer complaints tot up to a total of 30,006 cases - a 10% increase over the last year and the highest in four years since 2010.
The high turnout is not unexpected by the Consumer Council in a year of extensive publicity to heighten consumer awareness of the newly amended Trade Descriptions Ordinance (TDO), which came into enforcement last July.
In the year under review was also recorded the highest number of complaints relating to goods (13,579 cases), as distinct from services, since 2010. The level of complaints relating to services maintained approximately the same as 2012 at 16,427 cases.
Given the changes in the marketplace in recent years, the surge in goods-related complaints could be attributed to: notably, the strong markets in online and tourism shopping (57% and 82% respectively of complaints being goods-related), and the rising range and complexity of products nowadays exacerbating consumer problems - and subsequent consumer complaints.
Top 5 Consumer Complaints
The top 5 consumer complaints, out of a classification of nearly 50 categories of complaints on goods and services, drew altogether some 45% (13,379 cases) of all complaints.
Telecommunication services had the dubious distinction of being top on the list - with 6,410 cases, a 4% decline over the last year but still a significant 39% of the overall number of complaints against the service sector.
The bulk of the complaints were concerned about mobile phone and internet services (2,165 and 1,836 cases respectively) as well as mobile data services including GPRS (884 cases). More than half of the cases (3,628, +11%) involved disputes over price and charges.
Following a distant second was telecommunication equipment - with 2,371 cases (+21%). Not surprisingly, they were overwhelmingly related to mobile handsets with 2,165 cases arising mostly over issues of repair and maintenance (1,053 cases), and over quality of goods (645 cases).
It seems that technological advances and product innovation do not necessarily fully meet consumer needs if achieved at the neglect of after-sales services to consumers. This is a problem that is by no means unique or confined to any one particular trade.
Between the telecom services and telecom equipment, they took up a combined total of 8,781 cases, or some one-third of all complaints. It is clearly in their own interest that the telecom industry should review and implement measures to strengthen its quality of services to consumers.
In third and fourth place were electrical appliances, and furniture and fixtures, both of which routinely occupied the top spots in consumer complaints, with 1,623 cases (+6%) and 1,512 cases (+44%) respectively.
Travel matters, last but not least, stood out among the top 5 with the highest increase over the last year - 1,463 cases rising by a significant 55%. 851 cases or 58% were related to airline tickets and services.
Fueling the increase in this sector is the growing use of online flight booking and the internet, resulting in the delay of issuing e-tickets, lack of timely information on delays and cancellations, and quality of cabin service falling short of consumer expectations, etc.
Sectors of High Increases
Insurance was another sector of concern. Although still comparatively low in the number of complaints (489 cases), the increase was high reaching 62% over the last year.
The sharp increase was due partly to a major insurer terminating the use of insurance agents' service prompting a rash of complaints from irate policyholders deprived of an essential service to ensure quality service. Disputes over claims and charges were also on the rise totaling 189 cases or 36% of insurance complaints.
As expected, the year recorded 310 complaints relating to the baby food infant formula, a staggering 195% increase, the majority of which were caused by an apparent acute shortage of supply of the product and quality of services by suppliers as well as overcharging by retailers taking advantage of the situation.
TDO and Sales Practices
Another area of consumer complaints also much in the public limelight during the year, in the wake of the enactment of the newly amended TDO enactment, concerned undesirable sales practices against consumers. A total of 3,969 cases with an increase of 6% were brought to the Council for redress assistance.
Prominent among these sales practices were alleged to involve false or misleading representation (1,654 cases); coercion or harassment (471 cases); bait and switch (193 cases); deceptive price indications (167 cases); and accepting payment without intention to supply (108 cases).
Among the main culprits were trades involved in telecom services and equipment, Chinese herbal and patent medicines, fitness clubs and beauty centres, photographic equipment, to name but a few of the more serious.
With the consent of the complainants, 188 cases relating to sales practices were referred to the C&ED for consideration of investigation.
Complaints from Tourists
A robust tourism industry has brought with it its fair share of consumer complaints. In the year under review, 2,857 cases (+32%) were generated by tourists primarily by visitors from the Mainland with 2,306 cases (+44%).
They were predominantly dissatisfied with purchases of medicinal products and health foods, watches and clocks, photographic equipment, telecom equipment and services, apparels and sporting goods.
As 282 of these complaints were from inbound tours, shopping at registered shops, they were subsequently referred to the Travel Industry Council for resolution.
Looking Forward to the Year Ahead
In the year ahead, the Consumer Council will pull its resources to focus on the goals and initiatives laid out in its 3-year strategic plan to protect and empower consumers.
Issues of trade practices and competition in the market will be an area of priority to be brought under scrutiny and research study.
Further, also in pressing need for enhanced consumer legal protection is the introduction of a "cooling-off period" for consumers for such transactions as online purchase, prepayment, time sharing, health and beauty centre services, and the like with similar features. Hong Kong is lagging behind many of its neighbouring countries, where the protection of a "cooling-off period" is already in place.
As the population is ageing - a global phenomenon - consideration is urgently called for to better cater to the rising needs of a growing market of the elderly consumers. The Council is in the process of planning ahead to meet this rising challenge.
2014 will no doubt be a year of special momentous significance to the Consumer Council which is celebrating its 40th anniversary this year. A programme of events and activities is in hands to mark this important milestone of the Council's endeavours over four decades and to capitalize the occasion to reach out to consumers.
A first-ever symposium organized by the Consumer Council in solidarity with its allies and counterparts from the Mainland, Taiwan and Macau is scheduled to be held in April.
The occasion will also be used to renew friendship and co-operation with the signing of Memorandum of Understanding with partners in this region.
2014 promises to be a year of busy and intense work, and fruitful and rewarding progress in fulfillment of the Council's mission to ever strive for the betterment of consumers.