I.      VISION

The Council strives to be Hong Kong's trusted consumer voice that speaks for consumers, and raises matters for general discussion and action.

II.      MISSION

The Council is committed to enhancing consumer welfare and empowering consumers to protect themselves. Consumers include consumers of goods and services and purchasers, mortgagors and lessees of immovable property.

• it acts as advocate for consumer interests;
• it facilitates constructive discussion and promulgation of pro-consumer policies;
• it sees to empower consumers to help themselves.

This is to be achieved through initiatives directed at the consumers; the private sector; and networking with other stakeholders, such as the media and government.

III.      CORE VALUES

• be consumer interests driven, with due regard to the concept of sustainable consumption;
• uphold fairness and justice;
• maintain openness in our activities;
• be independent and unsusceptible to undue influence;
• be accountable;
• discharge our functions proactively, constructively and with perseverance; and
• protect the privacy of personal data.
  
  

IV.      FUNCTIONS

The Consumer Council Ordinance prescribes the following functions for the Council:-

• collecting, receiving and disseminating information concerning goods and services and immovable property;
• receiving and examining complaints and giving advice to consumers of goods and services and purchasers, mortgagors and lessees of immovable property;
• taking such action as it thinks justified by information in its possession, including tendering advice to the Government or to any public officer;
• encouraging businesses and professional associations to establish codes of practice to regulate the activities of their members; and
• undertaking such other functions as the Council may adopt with the prior approval of the Chief Executive in Council.
  
  

V.      MAIN DUTIES

(i)   Forestalling & Mediating Disputes between Consumers and Business

Consumer satisfaction is important to the marketplace. The Council offers a convenient service to consumers in making enquiries and lodging complaints, providing them with pre-shopping advice and help mediate disputes as they occur. Our consumer hotline (tel no.: 29292222) and our 8 Consumer Advice Centres (CACs) form an extensive network in offering convenient services to consumers.

Council staff mediates the consumer disputes to help resolve complaints with pursuable grounds.

Mediating Consumer Complaints: The Council normally can help resolve over 90% of cases with pursuable grounds. In 2007/08, the Council received a total of 36,847 complaints with 2,792 coming from tourists. CACs & Hotline Centre received 137,845 consumer enquiries. If traders refused to co-operate in resolving justifiable complaint cases, consumers may seek redress at the Small Claims Tribunal and the Council will tender advice where appropriate.

• Exposing malpractices of traders: For dishonest traders who do not take the Council's advice and continually indulge in malpractices, the Council may convene a press conference to name them.

Number of consumer complaints from 1998/99 to 2007/08

• Co-operation with Hong Kong Police: Council staff collaborate with the Hong Kong Police in launching campaigns against trade malpractices, e.g., public broadcasting of consumer advice, distributing of pamphlets to alert visitors and meeting with traders before festive seasons such as the National Day, the Labour Day and the Re-unification Day.
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• Co-operation with Shenzhen Consumer Association: The Council co-operates with the Association in: (1) distribution of consumer information leaflets to Mainland tourists; (2) handling of complaints against shops in Chung Ying Street (a restricted district at the boundary with Mainland China); and (3) staff training and exchange of consumer protection information.

(ii)   Ensuring Product Quality and Safety

The Council conducts tests on consumer products to provide unbiased comparative test results to help consumers make rational choices, to alert them to product hazards and to induce improvements in product quality and safety.

How this is done?

There are three different types of tests:

• Tests initiated and solely conducted with the Council's own resources. Most of these tests are conducted by accredited and independent laboratories in Hong Kong. In case local testing facilitates do not meet the Council's requirements, appropriate overseas laboratories will be commissioned.
• The Council is a member of theInternational Consumer Research and Testing(ICRT). It benefits from ICRT's joint tests through which utilization of resources could be maximized and experience shared.
• Tests conducted in cooperation with selected overseas consumer associations.

Product testing: In 2007/08, 41 product testing reports and 32 study reports were published in Council's CHOICE magazine (e.g., electric herbal pots, trans fats in daily meals, household dehumidifying agents, mascara etc.)

Product Study Reports: They are reports of in-depth studies on a wide range of consumer products to provide consumer information and, in some cases, to verify product claims (e.g., digital TV set-top boxes, indoor tanning, self-claimed non-surgical cosmetic treatments, etc.)

International Exchange of Hazardous Product Information: The Council pays special attention to the movement of unsafe products into Hong Kong and will request suppliers to recall any such products. Through communication with other consumer organisations and foreign authorities, such as the US Consumer Product Safety Commission, the Council receives a constant flow of information about unsafe products found outside Hong Kong.

(iii)   Collecting Market Information on Services and Goods

Hong Kong has developed into a service-oriented economy and consumers need more information on a wide range of services. We conduct opinion surveys, market surveys and price surveys to collect information on services for the benefit of consumers.

• In 2007/08, 26 surveys and service study reports were conducted:
• Finance and Banking: e.g. study on Mandatory Provident Fund fees, survey on monthly stock saving plans, etc.
• Health and Care: e.g. health check packages, laser eye surgeries, etc.
• Daily living: e.g. supermarket price survey, survey on pay TV services, etc.

(iv)       Promoting Sustainable Consumption

Consumers as ultimate users can exert influence in the sustainable consumption and production equation, although the latter is a much stronger party. The Council promotes and supports sustainable consumption through comparative product testing and dissemination of information which enable consumers to make informed choices and to help conserve natural resources and waste reduction.

(v)       Advocating Best Practice and Competition in the Marketplace

In a market-based economy such as Hong Kong, the Council has a role to play in ensuring that best practice and competition in the marketplace bring desired effects of consumer satisfaction and economic efficiency, thereby benefiting consumer welfare - with lower prices, more choices and higher quality of products and services.

The Council undertakes research and study on various aspects of marketplace behaviour to identify matters of concern to consumers as well as to encourage responsible trade practices and fair competition.

Encouraging responsible trade practices:

The Council worked closely with the beauty industry in promoting the Beauty Industry Code of Practice. In the end of 2007, the Code was incorporated into the industry manual of professional operation and business management as part of the industry initiative to provide the best beauty service.

Responding to Consultations:

In 2007/08, the Council responded to 14 consultation papers, e.g.:

• Review on the Mode of Operation and Quality of the Taxi Services in Hong Kong
• Consultation Paper on Amendments to Code of Practice on Consumer Credit Data
• Regulation of Health Maintenance Organisations

(vi)       Disseminating Consumer Information

As consumers become better informed, they will be better able to safeguard their interests against undesirable trade practices and unsafe goods and services, to exercise rational choices, and to contribute to sustainable consumption.

• Multi-media consumer information service:
  • CHOICE magazine:    The magazine provides a regular outlet of information, advice and viewpoints on all matters affecting consumer interest.
    • It does not accept any commercial advertisements. In addition to copyright protection, the Consumer Council Ordinance strictly prohibits the exploitation of the Council's name or its research information for commercial and promotional purposes.
    • A press conference is held to launch the publication of each issue of CHOICE, generating widespread coverage in all sectors of the media.
    • During 2007, the sales of CHOICE magazine averaged 23,873 copies per issue.
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  • CHOICE Online ( http://choice.yp.com.hk ): CHOICE Online, a full PDF version in both traditional and simplified Chinese, provides all of the reports in each current edition and an archive of over 5 years of back issues of CHOICE for access by all internet users, for viewing on annual subscription or per issue or per report basis.
    
    
  • Fixed Line and Mobile Phone: Through PCCW New Generation Residential Fixed Line and PCCW Mobile, consumers will now be able to access a selected number of mainly test and survey reports complete with brandname information in CHOICE.
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• Media liaison:   Regular press conferences, news releases, briefing and interviews are arranged for all sectors of the media.
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• Council's website ( www.consumer.org.hk ):   Information posted on the website includes information on our structure and services, research reports, submissions to the Government and the Legislative Council, press releases, competition study reports, consumer complaints forms, CHOICE index and subscription forms, etc.
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• The Shopsmart Website ( www.consumer.org.hk/shopsmart ):  Available in both the traditional and simplified Chinese versions, the website "精明消費香港遊" offers an unique one-stop consumer service covering a broad range of products and topics of interest and concern to Mainland tourists. It can be readily accessed via a network of hyperlinks with the websites of sister consumer organizations in the Mainland, through the cooperation and assistance of the China Consumers Association.
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• Publicity programmes:    Events held annually include the Consumer Rights Reporting Awards, Top Ten Consumer News, World Consumer Rights Day commemorative activities.
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(vii)       Empowering Consumer through Education

Consumer education forms an integral part of the consumer empowerment objective of the Council. The Council has provided institutional support to other organisations and educational institutes to enable them to run their own consumer education programmes. Tailor-made activities are designed to cater for three major target groups - namely young people, senior citizens and new immigrants.

• Enhancing youth awareness in consumer rights:

  Consumer Culture Study Award is an annual event jointly organised with the Education Bureau for local secondary schools. Participants are to study a particular aspect of our local consumer culture, exploring consumer attitudes, values and behaviours in Hong Kong. In 20007/08, 761 teams from 103 secondary schools presented projects for the Award.

  Besides, Youth Development Service Scheme aims to provide an opportunity for the trained youth volunteer leaders learning more about consumer issues through involvement in the Council's activities.
  
  

• Education programmes for the vulnerable groups:
  
  • For senior citizens, aim to educate them on: health and safety concerns in selecting and consuming products and services; precautions from falling prey to consumer traps; etc
  • For new immigrants, regular programmes are developed for the new comers from the Mainland to familarise themselves with local consumer protection measures, especially those concerning employment traps.
  • For disadvantaged groups, in 2007/08, training workshops and special programme were held for disabled students and children with mild-grade mental retardation.
  
  
  
• Training the trainers:

Training courses/programmes held in 2007/08 included web-based training course for secondary school teachers (personal, social and humanities education), professional development programme for liberal studies to assist teachers who would be leading students in conducting study projects, and training workshops for teachers.

• Consumer Council Resource Centre:

Located in Tsimshatsui, the Centre's facilities include a Consumer Advice Centre, an exhibition-cum-lecture hall, and a resource library. Teaching resources development includes education resources kit on project-based learning for PSHE at Secondary Level, DVD-ROM of winning reports of the Consumer Culture Study Award, interactive drama game and consumer education resource kit for new immigrants.

  (viii)      Representing the Consumer Voice and Networking

Everyone is a consumer. Our efforts to promote consumer interests will become more effective when we work closely with other partners and stakeholders locally and overseas.

• Locally:

We maintain close liaison with the Government through the Commerce and Economic Development Bureau, which oversees consumer protection and competition policy. Besides, the Council liaises with over 10 other bureaux and 30 Government departments, facilitating the Council's work in addressing specific consumer issues that fall within their purview. Council's representatives serve about 50 public advisory committees and boards of regulatory or statutory bodies.

• Liaison with Mainland counterparts:
  

  • Close liaison with consumers associations and related bodies from the Mainland (over 3,200 consumer associations in the whole country) is maintained through exchange of information, referral of complaints, receiving their delegations or providing training to their staff.

  • Memoranda of Cooperation have been signed with consumer associations in major cities/provinces in the Mainland, including Beijing, Shanghai, Shenzhen, Tianjin, Chengdu, Zhejiang Province, Fujian Province, Shantung Province, Macau, the Pan-Pearl River Delta Region, etc.

  • With the assistance of the China Consumer Association, theShopSmartWebsite was launched in 2007 to provide consumer information to Mainland visitors. 16 consumer organizations in the Mainland as well as the China National Tourism Administration added in their official websites a hyperlink to the ShopSmart Website.
    
    

• Regional and international collaboration:
  

The Council is elected executive and council member of the Consumer International (CI), a federation of consumer organisations comprising over 220 members from 115 countries. Major conferences/seminars with the Council's participation during 2007/08 included the CI Asia Pacific Members' Regional Meetings and the 2007 CI World Congress. In March 2008, CI voted to select Hong Kong as the venue for its 19 ^th World Congress to be held in 2011.

(ix)     Improving Legal Protection for Consumers

Consumers' legal rights should be protected by law. We keep abreast of developments in the law that may affect consumers' positions and welfare as users of goods and services. We took all the initiative to improve an protect consumers' legal rights by submitting our views in that regard to the Government.

In 2007/08, the Council expressed views and made recommendations in the following areas: improvement on the Trade Descriptions Ordinance, introduction of a comprehensive trade practices statute. copyright protection in the digital environment, wasted costs in criminal proceedings and eHealth record sharing.


(x)     Consumer Legal Action Fund

The Council is the Trustee of the Consumer Legal Action Fund through a Declaration of Trust executed in November, 1994. The Fund was established with a Government grant of $10 million. It aims to give easier consumer access to legal remedies by providing financial support and legal assistance for the benefits of consumers, particularly, groups with similar grievances in cases involving significant public interest and injustice.

From 11/1994 to 3/2008:

Groups of cases considered:                     106
Cases with assistance granted:                 32
Assisted Cases in which
compensation or judgment obtained:         16

November 2008