Consumer complaints have escalated sharply by 36% to a new record high of 36,614 cases last year. In 2004, there were 26,756 cases.
It coincided with a year of strong economic rebound in Hong Kong though an analysis of the complaints gave no immediate clue that a robust economy is to blame for the rise.
Statistics of the Consumer Council showed that complaints that might have been accelerated by the economic growth in Hong Kong, remained stable with no significant changes, one way or the other, in 2005.
For example, despite a record growth in tourism, tourists-related complaints represented 5.21% (1,909 cases) of all complaints. In 2004, tourist complaints (1,505 cases) amounted to 5.62%. There was actually a slight drop in percentage.
Nor was there any increase in complaints relating to the buoyant property market (428 cases). In 2004, there were 482 cases.
In fact, complaints in the year under review followed closely the same patterns as in previous years. Topping the list of complaints continued to be in the fast-growing field of telecommunication services totaling 12,029 cases. In 2004, there were 7,743 cases.
Prominent among telecom services complaints were internet (4,382 cases), fixed telecom network and fax (2,269 cases), and broadband telephone (1,690 cases), in relation to disputes concerning essentially sales tactics, service quality and service contracts.
Second, in a related telecom field, complaints against broadcasting services more than doubled in a year - from 1,015 cases in 2004 to 2,211 cases in 2005, due mainly to undesirable sales practices of pay TV, and the bundling of charges of pay TV and broadband internet service in a rapidly expanding market of new services.
Third, there were 1,768 cases of telecom equipment concerning overwhelmingly mobile phones against product quality and maintenance service.
The three categories of complaints involving telecom and related goods and services amounted to a total of 16,008 cases or over 40% of all complaints last year.
They were followed by household electrical appliances (2,180 cases) of chiefly TV sets and air-conditioners; furniture and fixtures (1,653 cases); computers (1,236 cases); and travel services (1,167 cases).
Other notable categories of complaints with significant increases concerned: further education services (up 65% from 343 cases in 2004 to 567 cases in 2005), and beauty salons/slimming services/laser treatment (up 58% from 579 cases in 2004 to 916 cases in 2005).
Since the new millennium, consumer complaints lodged with the Consumer Council have nearly doubled, rising from 18,932 cases in 2000, 20,798 cases in 2001, 22,890 cases in 2002, 26,501 cases in 2003, 26,756 cases in 2004, to 36,614 cases in 2005.
As the economy progressively shifts to a service-based one, so do consumer complaints. In 2000, service-related complaints represented 46% of all complaints. This has risen to 62% last year, overtaking the goods sector.
Consumer complaints in the tourist sector have not kept pace with the phenomenal growth in the number of visitors to Hong Kong as the Individual Visit Scheme got underway in 2003.
Compared with the overall rise in complaints, tourist complaints have increased moderately from 1,234 cases in 2003, 1,505 cases in 2004, to 1,909 cases in 2005.
Since the Individual Visit Scheme, tourist complaints were predominantly from mainland visitors: 728 cases in 2003, 980 cases in 2004 and 1,316 cases in 2005. Of these 106 cases, 192 cases and 730 cases respectively were from travellers under the scheme.
Besides the changing economy and marketplace, one factor might also contribute to the rise in consumer complaints: the installation of an Interactive Voice Recording System (IVRS) in 2005 with more efficient connections to various complaint and advice service centres. The latter service handled 163,313 enquiries in 2005, up 33% from 120,797 enquiries in 2004.
During the year, the Consumer Council has taken a number of initiatives in an effort to tackle at the root cause the growing number of disputes between the consumers and their service providers in the purchase and use of telecom services.
First, as complaints were increasingly generated by the relocation of users to an area or estate where their telecom operators were unable to provide the necessary service but the consumers were legally bound to honour their contracts, the operators have agreed to offer the following means of resolution:
- temporary suspension of the service until such service becomes available in the location;
- transferring the remaining account balance for the use of relative or friend; and
- failing the above, cancellation of the existing contract.
Second, in view of the growing sales practice of bundling telecom services with pay TV and the consequent consumer dissatisfaction, the Council has successfully negotiated that the principal contracting service provider will be responsible for other contracting providers in the bundled service in the event of disputes.
Third, with more operators entering into the pay TV industry, the Council is vigilant on their trade practices and service contracts to protect the interests of the consumers. There is now no specific authority or law to oversee the operations of pay TV services; the Broadcasting Authority is responsible only for licensing and programme content.
Currently underway is also a publicity campaign organized by the Consumer Council and the Telecommunications Authority (OFTA), with backing from the telecom industry, to raise consumer awareness of the importance of making informed choices, and in particular to understand the terms and conditions for the telecom services they are considering and assess the many options in the marketplace carefully.
Hopefully, these measures in combination will help lead to better trade practices and reduction of complaints in the year ahead.
A statutory responsibility of the Consumer Council is to encourage business and professional associations to establish appropriate voluntary code of practice for the compliance of their members.
A major breakthrough was achieved early last year when the Council launched a Good Corporate Citizen's Guide that addresses the crucial issue of corporate social responsibilities.
The Guide has since been widely circulated among trade and professional bodies for them to incorporate it in their own code of practice as appropriate.
With the active support of the Consumer Council, a code of practice for the voluntary compliance of the beauty industry is nearing completion for consultation with their members prior to final adoption later this year. The code will cover areas of service quality, complaint handling, and the prevalent prepayment practice adopted by the industry.
The Consumer Council will step up its ties regionally and locally in the field of research and testing.
As a start, it has taken the lead in co-ordinating the first joint test for the Asia and Pacific region on rechargeable batteries under the aegis of the International Consumer Research and Testing (ICRT) group.
In addition, ICRT partners in the region will be conducting market research and feasibility study of testing a number of products which may include child car seats, mosquito repellents, steam irons, vacuum cleaners, and ginseng tea.
Locally, the Council will further develop its collaboration with government departments such as the Food and Environmental Hygiene Department, the Electrical and Mechanical Services Department, and the Environmental Protection Department, to undertake more joint projects in the coming year.
On consumer education, the Consumer Culture Study Award has drawn a record 696 teams from 125 secondary schools to participate this year. This annual project, in its seventh year, is now recognized as the biggest project-based learning of its kind for secondary students in Hong Kong.
The Consumer Council is moving to expand its online dissemination of consumer information to the public. It is in negotiation with its internet service provider for Online CHOICE to extend to users of fixed line and mobile phones.
Chairing the press conference today (January 4) is the Chairman of the Consumer Council, Prof. K.C. CHAN.