2023 marked the first year of the recovery from the COVID-19 pandemic, whether it was local consumption or travel-related, both online and offline consumption had been rejuvenated. Traders had adopted various aggressive sales and marketing tactics to promote their products or services, with the corollary of an increase in consumer complaints. The overall number of complaints received by the Consumer Council was on the rise for 2 consecutive years, with a total of 34,155 cases in 2023, a 11% year-on-year (YoY) increase versus 2022.
To more accurately reflect consumer complaints lodged by local consumers in Hong Kong, starting from last year, analysis excluded complaints from Mainland consumers against Mainland internet shopping platforms registered as businesses in Hong Kong but operate primarily outside the territory. Overall, the Council received 31,294 complaints in 2023, up 10% from the 28,338 cases in 2022, involving an amount of about $800 million ($804,109,498), the decrease in monetary amount was mainly due to the decrease in the respective monetary amount of property-related complaints. Last year, 61% of complaints were related to “Services” as compared with 54% in 2022, and 39% were related to “Goods”.
“Internet Shopping” as a common shopping mode recorded 12,696 consumer complaints last year, a YoY increase of 19% and accounting for 41% of total complaint cases, a comparatively larger share than 2022 (38%). The amount involved also increased by 20% from the previous year, reaching over $43 million.
After being dormant due to the pandemic in the past few years, concerts and other entertainment services had mostly revived, but there were cancellations due to improper arrangements or inclement weather, and consequently “Food & Entertainment Services” had topped the complaints for 2 consecutive years. At the same time, the rapid resurgence of tourism resulted in “Travel Matters” receiving the third highest number of complaints. After the lifting of the face mask requirements, beauty lovers rushed back to patronise beauty centres and complaints under “Beauty Services” increased by 37%, becoming the fifth highest consumer complaints category, slightly higher than before the pandemic.
The Top 5 Complaint Categories
Food & Entertainment Services Remain the Top Complaint Category for 2 Consecutive Years
Last year, consumer complaints involving “Food & Entertainment Services” remained as the top complaint category for 2 years running with 3,913 cases recorded, a 25% increase when compared with 2022 (3,127 cases). Albeit an improvement (decrease of 10%) when compared with last year, complaints related to “Late / Non-delivery / Loss” accounted for the most complaints (724 cases), followed by “Price / Charges Disputes” (701 cases), and “Quality of Services” (682 cases). It was noteworthy that complaints related to “Sales Practices” (627 cases) and “Shop Closure” (34 cases) had increased dramatically by more than 113% and 240% respectively. Complaints relating to “Sales Practices” were mostly about “False / Misleading Trade Descriptions” (155 cases) and “Bait / Misleading Advertising or Misleading Omission” (61 cases).
Within this category, “Restaurants” (1,166 cases) accounted for the largest share of complaints, constituting 30% of this category and an increase of 43% versus 2022; followed by “Online Food Ordering Platforms” (1,061 cases, 27%). These 2 categories had swapped positions from the previous year, a clear indication that people have resumed dining out after the pandemic. Meanwhile, complaints relating to “Public Performance” (866 cases) and “Pub / Clubs” (35 cases) saw twofold (240%) and tenfold (1,067%) increases last year, with one major cause being related to a single case where a pub had sold admission tickets promoting the private appearance of a Korean artiste that did not materialise. The surge in complaints under “Public Performance” were attributed to the cancellations of a concert by a Japanese band due to typhoon and the improper arrangement regarding a fan meeting of another Korean artiste.
Telecommunications Services Ranked 2nd Alongside Increased Demand for Mobile Data Services
Complaints relating to Telecommunications services jumped from fourth place in 2022 to second place in 2023, with 3,162 cases, an increase of 48%. The biggest share (38%) of the complaints involved mobile phone services (1,201 cases), an increase of 32% from 2022. After the recovery from the pandemic, consumer demand for mobile data services, prepaid calling card, IDD/Long Distance Calls and Sim / Roaming Card had increased significantly to cater for everday usage, work or travelling, resulting in the concomitant increases in the number of complaints by 443%, 117%, 92% and 89% respectively. The complaints mostly related to “Price / Charges Disputes” with 1,369 cases; followed by “Variation / Termination of Contract” and “Quality of Services” with 750 cases and 551 cases respectively, both of which were higher than in 2022.
Complaints Relating to Travel Matters Remained 3rd as Demand for Cross-border Traffic Increased
As Hong Kong fully reopened its borders in early 2023 following the pandemic, the tourism industry had rejuvenated at a rapid pace, with the related complaints on “Travel Matters” surging by 23% to 3,160 cases last year. Although on the list “Travel Matters” stayed the same, there was a 22% rise in the amount involved to over $20 million. Complaints relating to “Air Tickets” (1,750 cases, increase of 77%) and “Airline Services” (increase of 2.7-fold) had both risen, with the monetary amount involved increased by 63%, reaching $14.9 million; whilst complaints relating to “Bus / Coach Tickets” jumped by 692% (103 cases). On the other hand, due to the cessation of quarantine hotels as an anti-epidemic measure and the decreasing trend of “staycations”, complaints relating to “Hotel Booking” dropped 59% to 451 cases.
Of the total complaints, “Variation / Termination of Contract” (1,003 cases), “Price / Charges Disputes” (930 cases) and “Quality of Services” (496 cases) were the top nature of complaints, together accounting for 77% of the cases. Complaints relating to “Sales Practices” had also doubled (increase of 101%) when compared with last year.
Electrical Appliance Complaints Dropped to 4th Place
During the pandemic, due to work-at-home arrangements or quarantine requirements, many consumers took the opportunity to replace their home electrical appliances or purchase new ones, while increased usage might have caused a higher demand for repair and maintenance as electrical appliances are durable goods. After refreshing the record high complaints for 3 consecutive years, complaints about “Electrical Appliances” slipped from the second place in 2022 to fourth place in 2023 with 2,118 cases, a sharp reduction of 27% versus 2022, involving an amount of $8.7 million. Complaints were mainly about “Repair / Maintenance” (650 cases) and “Quality of Goods” (580 cases) of traditional home appliances, accounting for 58% of total complaints. The top 3 most complained-about electrical appliances were the same as the previous year, which were air conditioners (366 cases), television sets (270 cases), and washing machines / dryers (258 cases). It was observed that after numerous advice and reminders issued by the Council, some manufacturers and traders that had attracted many complaints in the past had made improvements in terms of after-sales services and had thus received less complaints. It is hoped that the momentum could be sustained, especially in strengthening maintenance services to enable a longer lifespan for electrical appliances, and as a result a more environmentally friendly society.
Beauty Services Ranked 5th with the Highest Monetary Amount Involved
Despite “Beauty Services” complaints ranking fifth, its monetary amount involved was the highest at $36.7 million, a sharp rise of 75% versus 2022. Some individual complaint cases had involved hundreds of thousands of dollars. Out of the 1,484 cases in the year, most were related to “General Skin Care Services” (332 cases), an increase of 30% over 2022; followed by “Spa / Massage Services” (295 cases), with the highest percentage increase at 60%. “Laser / IPL Beauty Services” and “Plastic Surgery / Injection Treatments”, both in relation to medical beauty services, recorded 213 cases and 83 cases respectively, representing a surge of 44% and 15% respectively versus 2022. “Sales Practices” (463 cases) topped the nature of complaints, with a sharp jump of 61%; followed by “Quality of Services” (277 cases) and “Variation / Termination of Contract” (243 cases), increases of 33% and 22% respectively over the past year.
Internet Shopping Complaints and Amount Involved on Continuous Uptrend
The pandemic had further accelerated and acted as a catalyst for the development of internet shopping in Hong Kong, and related complaints increased by 19% to 12,696 cases last year, with the amount involved increasing by 20% to over $43 million. Internet shopping complaints accounted for 41% of the total complaints in the year, higher than the previous year’s 38%. The biggest share of internet shopping complaints involved “Travel Matters” (2,370 cases), followed by “Food and Entertainment Servies” (2,237 cases). Last year, there was a notable case where a single online shop that sold prepaid coupons for baby diapers had attracted over 600 complaints, rendering the number of complaints relating to baby products to jump to third place (935 cases), a three-fold increase (307%) from the year before. All these made the top 3 internet shopping complaint categories to be different from the top 3 among overall complaints last year. “Travel Matters” claimed the top spot, surpassing “Food and Entertainment Services” which was top of the list the year before.
In terms of the nature of complaints, “Late / Non-delivery / Loss” accounted for the most cases (3,762 cases), a slight drop of 4% versus the previous year. However, “Variation / Termination of Contract” had nearly doubled (increase of 95%) to 2,866 cases. As internet shopping is heavily reliant on home delivery services, the Council urges traders to improve logistical and delivery arrangements to ensure timely delivery of products to consumers and to honour the contractual terms, so as to minimise chances of disputes.
Thematic Analysis
Full Resumption of Cross-border Travel
Resurfacing of Sales Malpractices Must Not be Overlooked
Travel restrictions due to the pandemic had been lifted throughout the world in early 2023. Hong Kong people, renowned for being fond of travelling, had resumed travelling overseas with a vengeance. The number of visitors to Hong Kong had reached about 80% of the pre-pandemic level, from about 1.4 million in February 2023 to 3.93 million in December 2023, of which over 70% were Mainland visitors. In the past year, the Council had received 3,030 complaints from visitors, of which 81% (2,467 cases) had originated from Mainland visitors, representing a 12-fold increase (1,198%). In the post-COVID era, the travel modes of many visitors had changed, with more preferences towards in-depth tours and cultural tours. Some visitors had also come to Hong Kong for the major festivities, and to patronise eateries with distinctive characteristics or local flavours. And yet, inclement weather brought about by the typhoons and monsoon rains had disrupted the plans of concert-goers, while many others were dissatisfied with the arrangements of event organisers. This was one major reason why “Food and Entertainment Services” had claimed first place in the number of tourists complaints (725 cases), representing a 41-fold increase (4,165%), causing in tandem complaints relating to “Accommodation” (612 cases) to increase by 17-fold as well. In addition, some unscrupulous Chinese pharmacies had resorted back to illicit sales practices in targeting tourists with “catty-to-tael” scams and “powder-grinding” strong-arm sales tactics. Hence complaints relating to “Medicine & Chinese Herbal Medicine” (486 cases) had skyrocketed by 47-fold (4,760%) in the year, accounting for the biggest increase in tourist-related complaints.
As for local consumers, Hong Kong people were keen to travel on both long and short holidays. Therefore, there was a sharp rise in the number of complaints relating to “Air Tickets” and “Airline Services”, as well as “Price / Charges Disputes” complaints under “Telecommunication Services” (1,369 cases), where 200 cases were related to a single trader that provides pocket Wi-Fi services, as the said trader was slow in returning deposits to consumers. Additionally, “Travel Insurance” related complaints (67 cases) had recorded a 4.5-fold increase (458%).
Drop in “Fitness Centre” Complaints but “Medical Services” Complaints on the Rise
3 years of COVID-19 had raised health awareness amongst the general population. However, unscrupulous sales practices by unethical merchants in the health and beauty industries have long been a source of anguish for consumers. After several condemnations by the Council, and the raft of business closures of many fitness centres / gyms due to the pandemic, complaints related to “Fitness Centre” (476 cases) had dropped by 33% last year. Although the number of complaints had dropped for 2 years running, those relating to “Sales Practices” (119 cases) had increased by 75%. Complaints relating to “Coercion / Harassment” (36 cases) and “False / Misleading Representation” (13 cases) accounted for the biggest share. Complaints relating to “Quality of Services” (63 cases) rose 54%; most had related to “Variation / Termination of Contract” (181 cases), which dropped 2%. The unscrupulous merchants in the “Fitness Centre” industry and the “Beauty Services” industry had long been abhorred by consumers for their high-pressure sales tactics and inducement methods, coercing or luring consumers to fork out large sums of prepayment. Consumers must constantly be vigilant to avoid falling into such traps.
Last year, the number of complaints relating to “Medical Services” (715 cases) increased by 18%, involving a monetary amount that rose 1.5-fold (145%), reaching over $15 million. Complaints relating to “Chinese Medicine Practitioners” (51 cases, an increase of 21%) and “Medical Doctor” (59 cases, an increase of 34%) had both risen. The complaints related mostly to “Quality of Services” (183 cases), an increase of 6%, followed by “Prices / Charges Dispute” (161 cases), an increase of 11%, as well as “Sales Practices” (111 cases), a sharp rise of 88%, of which half were related to pain relief (46 cases) or body check-ups (10 cases). As those in the trade are medical professionals, the expectations of consumers are invariably high. The Council hopes that the medical services sector would uphold their professional conduct for the greater good of society.
Downsizing or Closure of Education / Tuition Centres Drove Complaints
To foster the development of their children, many parents would splurge on tuition centres and extracurricular activities for them, and this trend was particularly pronounced after the pandemic. Many tuition centres would require parents to pay up front with prepaid tuition packages. Complaints relating to “Education Matters” (722 cases) had increased by 14% YoY, of which complaints relating to “Tuition Course” (192 cases) saw a sharp rise of 6.1-fold (611%), 77% of these complaints (148 cases) had emanated from the business closure of “Brilliant Education Development” (翹英教育), involving a monetary amount of over $1.5 million, with an average of over $10,000 per case. Even though complaints relating to “Skill Course / Interest Class” had decreased by 16% as compared with 2022, this sub-category had still accounted for the bulk of “Education Matters” complaints (256 cases), of which 28 cases were related to the closure of a number of branches of a single talent training school, involving a monetary amount of $1.28 million, with an average of over $45,000 per case. The Council would like to remind parents that in enrolling their children for tuition or interest classes, tuition fees should best be paid on a monthly basis instead of a lump-sum advance payment, in order to mitigate any losses due to the abrupt business closures or change in operation modes of tuition centres.
Review
Name and Shame of 4 Chinese Pharmacies
Curb Sales Malpractices to Uphold Consumer Rights
For a long time,the Council had paid close attention to the unscrupulous sales malpractices of some pharmacies, and since 2015, 7 Chinese pharmacies had been named and shamed. Last year, another 4 Chinese pharmacies located in prime tourist spots in Causeway Bay were named and shamed, condemning their “catty-to-tael”, “tael-to-mace” scams and “powder-grinding”, “slicing of dried medicine” strong-arm sales tactics, as such sales malpractices were detrimental to the reputation of Hong Kong as a shopping paradise. The Council had also discovered that some Chinese pharmacies that were named and shamed since 2015 had continued their businesses and reopened their shops under a different shop name to fool consumers. The Council hoped that through this naming sanction, a stern message would be conveyed to unscrupulous traders in the industry that these sales malpractices would not be tolerated. Regulatory bodies and Law Enforcement Agencies should step up monitoring and to enforce the law resolutely and unswervingly to punish illicit traders, so as to uphold and protect the rights of consumers and tourists alike.
Optimising Private Residential Property Management
Increased Transparency and Participation to Enhance Property Value
Owners of private residential property have a legal obligation to pay management fees in recurring, sizeable and cumulative sums, so that management companies could discharge their duties in accordance with the Deed of Mutual Covenant ("DMC”). Effective property management could not only improve the living environment but also be conducive to enhancing the value of the properties. Through the Study on “Transparency and Governance – Optimising Value of Property Management Fee in Hong Kong” (The Study), the Council identified 6 major prevailing issues, including a bargaining power asymmetry between owners and the developer, and the general reluctance of owners to participate in matters relating to property management. The Study put forward 8 recommendations, including boosting the transparency on the basis upon which property management fees are shared between owners, promoting fairness through allowing amendment of the terms of DMC, promoting active participation of owners in property management activities, and facilitating the early set-up of OCs where applicable. It is hoped that effective and sustainable solutions could be found, to create the best long-term value and return for owners for their contributions in property management.
Greater Bay Area Consumer Protection Forum
Collaborating for New Consumer Modes Integrating Economic Development
The Council hosted the inaugural Greater Bay Area Consumer Protection Forum with the theme of “Welcoming Opportunities and Growth” in October 2023, with the aim to strengthen the cooperation and possible synergy through facilitating the exchange between the various consumer organisations from the Greater Bay Area. Almost 100 people, including more than 40 Administration for Market Regulation officials and representatives of consumer organisations from the Greater Bay Area, along with the China Consumers Association from Beijing and different local stakeholders interested in consumer rights, had attended to exchange ideas and discuss the new consumer modes in the post-COVID era. The Forum focused on 4 hot consumption topics, including the new live-streaming e-commerce trend, safeguarding the quality and safety of consumer goods, the legal protection of cross-boundary property purchases, and strengthening consumer education for persons with special needs. The speakers analysed the topics from multiple perspectives and exchanged ideas with Forum participants actively. The Council will continue to strengthen ties with the various consumer organisations in the Greater Bay Area, as well as to look for mutual cooperation to jointly create a safe consumption environment and foster economic development in the region.
Brand New “Smart Consumption Academy”
Nurturing a New Generation of Smart Consumers
The brand new “Smart Consumption Academy” (SCA) had inherited the spirit of the “Consumer Culture Study Award” (CCSA) that had been conducted for 24 years. In keeping pace with the rapid technological advancements and evolving education modes, the programme aimed to inculcate in secondary school students the concepts of responsible and sustainable consumption for a green lifestyle, as well as caring for the community, while incorporating the relevant knowledge into numerous subjects from the secondary school curricula, including “Citizenship, Economics and Society”, “Values Education” and “Technology Education” and so forth. The SCA will be conducted in 2 phases, with the first phase taking place from the 2023/24 to 2024/25 school years, consisting of 3 competitions: “My Unique Project Study”, “My Witty Online Quiz”, and “My Fun IG Post Creation”. The second phase will begin from the 2025/26 school year and thereafter would introduce an ambassador programme called “My Best Ambassador Scheme”. The most recent CCSA and SCA winners will be nominated as ambassadors to promote the positive values and attitudes towards consumption among students, ultimately cultivating a new youth generation of smart consumers.
Outlook
Since its establishment in 1974, for half a century the Council had continuously implemented versatile and multi-pronged measures to fulfil its mission in protecting consumer rights. Every era had its own unique consumption issues and environment, and recently the internet and Artificial Intelligence had brought about unparalleled changes within a very short time span. The Council will continue to move forward with the times with unwavering commitment and unrelenting efforts, to take on the challenges posed, and opportunities presented, in tackling both domestic and international consumer issues with foresight, in acting as the gatekeeper for consumers. The Council will conduct a series of 50th Anniversary celebration activities this year, including the opening of an Instagram account in January 2024, as well as a host of activities that the public can participate in, as we look back at the accomplishments of the Council over the last half century in protecting consumer rights, and also to look ahead to working hand in hand with consumers to create a brighter and safer environment for consumers.
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