The number of consumer complaints continued to escalate for the third year consecutively, with a total of 20,798 for the year 2001.
It represents an increase of 10% over 2000 (18,932) and 26% over 1999 (16,470).
It also reverses the pattern in the proportion between products and services. For the first time, there were more complaints related to services (12,248 or 59%) than products (8,550 or 41%), somewhat reflecting Hong Kong's service-based economy.
Telecommunications services and equipment were again the main source of consumer dissatisfaction for the year with 5,753 complaints, representing an increase of 37% over 2000 (4,212).
Other categories among the top 10 complaints of the year were: tutorial services (1,536), furniture and fixtures (1,344), financial services (989), electrical appliances (988), travel agents (954), computers (805), food and beverages (621), photographic equipment (574), clothings and apparels (569).
Together they totalled 13,566 or 65% of the year's overall consumer complaints.
Among the top categories with the most increases affecting significant number of consumers were: tutorial services (up 391% from 313 in 2000 to 1,536 in 2001), recreation/health clubs (168% from 108 to 289), time sharing schemes (131% from 74 to 171).
At the other end of the scale, significant decreases were recorded in these categories: overseas delivery services (down 96% from 159 in 2000 to 7 in 2001), fuels (73% from 97 to 26).
To tackle the rise in consumer complaints, the Council will step up its efforts in encouraging adoption of codes of practice with the business community, and in activities to promote consumer awareness of their rights.
Trade Practices
Significant progress was achieved during the year in a number of business codes of practice beneficial to the interests of consumers, in which the Council has played an active role commenting on the draft provisions.
In particular, the changes in the Code of Banking Practice which included provisions requiring adequate disclosure on credit card terms and conditions, using a standard annualised percentage rate and formula for quoting interest rates, bringing the approach of card services in Hong Kong more in line with that in other financial centres; promoting proper use of debt collection agencies by institutions. Financial services were among the top 10 consumer complaints in 2001.
Equally important was the introduction of the OFTA Code of Practice for mobile phone service contracts to ensure the adoption of fair trade practices and adequate consumer protection safeguards.
Telecommunications services-related complaints continued its rising trend, topping the list of consumers' dissatisfaction in 2001. Their prime concern related to whether companies should have unilateral power to increase fees for services obtained through fixed-term contracts.
Both codes should serve as a useful guide for operators to avoid engaging in conduct which might infringe the Unconscionable Contracts Ordinance and promote a higher standard of services.
The year saw the completion of the study on the supply and demand for school textbooks in Hong Kong, with recommendations to government on ways to improve the operation of the market. The Government was urged to consider introducing a policy where schools created textbook loan libraries so that schools, who made the decision on choice of textbooks also had to take into account the price.
In addition, the Council made over 30 submissions to government in response to consultation papers that raised consumer and competition issues in such diverse areas as housing, finance, health, copyright, electronic commerce, and telecommunications.
For the year ahead, it is anticipated that the Council's workload in making responses on major policy proposals, on behalf of consumers will continue to be heavy.
A major emphasis will also be made in fulfilling the Council's statutory function of encouraging self-regulatory measures by business to protect and promote the interests of consumers. To this end the Council will be publishing a comprehensive set of rules for trade associations to consider when constructing or revising their codes of conduct and when establishing procedures for handling consumer complaints.
Testing and Research
Sustainable consumption and personal finance will be among the main topics to come under research of the Council in the year ahead.
The Council has worked closely in co-operation with government and public organisations to undertake research, survey and testing projects.
To promote sustainable consumption, the Council has launched with designated grant from government a series of green testing with emphasis on the environmental aspects of such products as washing machines, laundry detergents, alkaline and rechargeable batteries, wood furniture, paints and varnishes.
In light of the current economic situation and low interest rate, the Council will also focus more on issues of personal finance, ranging from debt management and credit facilities, to asset management and investment products, etc.
During the year, the Council completed and published a total of 39 product testing, and 67 research and survey reports in the evaluation of goods and services available to consumers in the marketplace.
The Council's work in this area continued to regularly capture wide media coverage and public attention over a diverse range of goods and services. Examples included surveys on Mandatory Provident Fund Schemes, bringing to light the issue of loss of interest on funds-in-transit; and on bank charges, revealing increased and new fees and charges for a wide range of services.
Other examples included tests on refrigerators, pointing out that many models are too warm to keep frozen food and/or too small compared to their claimed volume; and on slimming and detoxifying health food products, stressing the need for comprehensive labelling requirements in the proposed subsidiary legislation of the Chinese Medicine Ordinance.
Consumer Empowerment
Despite the downturn in the retail market, the demand for the Council's monthly magazine CHOICE remained strong with a growing number of subscribers, and relative stable street sales. But to reach the widest audience possible, the Council works closely with the mass media in the dissemination of consumer information to the public at large.
The Council's new Resource Centre, situated in the heart of Tsimshatsui, Kowloon, has begun operation recently and is expected to increasingly become a focal point for consumer education activities.
The Council's Consumer Culture Study Award has continued to arouse enormous interest and support from the school sector, with a 62% increase in participation (412 teams from 82 secondary schools) over the previous year. The Council aims to broaden its scope of activities to post secondary schools and community groups.
Appendix : Complaint Statistics for 1999-2001