Ms Connie Lau, JP
Chief Executive
Hong Kong Consumer Council
We are all aware of how high Hong Kong rates in various international rankings. For example, how liveable the city is, its high ranking as a global financial centre, and its position as a gateway to China. Its reputation as a tourist destination continues to rank highly, particularly with Mainland tourists who see the city as offering high standards of service and quality products.
This reputation did not come about through the application of laissez faire principles. Regardless of what some people in business like to think, Hong Kong's high standing comes down to good governance. Its universal health care service, first-rate public transport, extensive public housing, and sound financial system all came about through direct government involvement and guidance. In fact, it is these and many other public service achievements that have provided the solid foundation upon which businesses have been able to grow and flourish in Hong Kong.
I quote a good example - the global financial crisis, which it is now acknowledged came about because of too little financial oversight. While there was a lot of pain, and there are still problems, the existence in Hong Kong of a strong regulatory authority, a deposit protection scheme and the ability in some cases to recover financial losses by consumers from misleading conduct, played an important part in ensuring a level of public confidence in the sector. All came about through the foresight of government (and I would quickly add the persistence by the Consumer Council) to recognise the importance of consumer safety nets and the role they play in consumer confidence.
However, these achievements have not come easily. In the course of doing my work as Chief Executive of the Consumer Council I am regularly told that consumers must compromise on not having very strong laws as a price to pay for having a vibrant competitive economy. However when consumer health is concerned, I would venture to say that consumers would not accept any compromise.
Hong Kong does have some regulations to protect consumers. However, there continue to be problems, and many businesses ignore the law, viewing the threat of prosecution as a bearable cost and not a deterrent. It is also in the nature of governments to be cautious in bringing forward legislation. This in turn causes problems with having to play 'regulatory catch up' to fix loopholes that have been exploited by the unscrupulous.
Moreover, because distribution of medicines is now global, courtesy of the Internet, slack enforcement in one country can mean problems for Hong Kong consumers notwithstanding its regulatory framework. And I have to admit that some consumers are their worst enemies through not exercising due caution when looking for a bargain.
Consumer Complaints
From 2009 up to July this year, a total of 83 complaints were made regarding suspected counterfeit medicines. Of these, 69 related to Chinese patent medicines, and 14 related to other medicines. Of those 83 complaints, 53 were made by tourists, and of those tourists, only one was not from Mainland China.
Consumer Information
The Council places emphasis on disseminating information as a means informing consumers, and of enhancing the regulatory efforts of government. We maintain a network of consumer advice centres around Hong Kong, available for local residents and tourists. These are found in North Point, Shamshuipo, Wong Tai Sin, Shatin, Tsuen Wan, Yuen Long and at Tsimshatsui, right in the heart of the tourist district in Kowloon
The Council also works closely with the Customs and Excise Department to publish the names of shops that the Department has found are involved in selling counterfeit drugs.
Most of you would be aware of the Council's monthly magazine Choice which provides an array of consumer information. This is in hard copy and also available online. The blacklisting of shops found selling counterfeit drugs is published under the Council's 'Shopsmart' banner for viewing of all consumers, including Mainland visitors. Moreover, a search of the Council's website reveals a host of information about counterfeit drugs. There is
- general Council online information regarding issues that arise from time to time;
- an index of convictions for selling counterfeit drugs; and
- information on product recalls and safety alerts.
As far as blacklisting of shops is concerned, by the end of September 2012 the Council had published 12 reports of shops convicted for selling counterfeit drugs. A total of 47 different shops were named, and among them, three had been named twice. The shops were located on Hong Kong Island, Kowloon and the New Territories. The cases involved over 30 different drugs. The main offences involved were applying forged trademarks on drugs which were sold as genuine items, or supplying drugs with false trade descriptions, of which the actual ingredients were inconsistent with the labelling.
The naming mechanism aims to alert consumers of unscrupulous traders and the drugs involved. This initiative also serves as a reminder to other drug stores that the reputation of their business name is at stake if they sell fake drugs.
While on this, I am glad to note the appreciation and support from the Pharmaceutical Industry of our joint effort with the Customs & Excise Department in naming the shops that are involved in selling counterfeit drugs. The name and shame exercise was highly regarded by the industry, serves as an effective mechanism to ensure patient safety and stem warning to unscrupulous pharmacy shops.
Conclusion
The Government, the legislature, industry, and consumer organisations all play a role and need to apply their skills towards addressing emerging problems in the economy.
I agree that sometimes compromises need to be made, and anyone who has followed consumer protection in Hong Kong knows that the Council has made its fair share of compromises in the past.
However, what I would like to stress is that in some cases the emphasis needs to be shifted so that compromises are borne more by industry than by consumers. The issue of safe medicines and Hong Kong's reputation as a trusted shopping environment is clearly such a case.
So let's strive our best to make Hong Kong a Genuine medical city.