OFTA Welcomes the Industry Code of Practice for Telecommunications Service Contracts to Enhance Consumer Protection

OFTA |Press Release | December 21, 2010
The Office of the Telecommunications Authority (“OFTA”) today (21 December 2010) welcomes the efforts of the Communications Association of Hong Kong (“CAHK”) in promulgating an Industry Code of Practice for Telecommunications Service Contracts (the “Industry Code”) for adoption by the telecommunications industry.
The Industry Code serves as guidelines for the telecommunications industry in drawing up contracts on telecommunications services with its customers.
“OFTA welcomes the efforts of the CAHK and the participating telecommunications service providers in formulating the Industry Code.  OFTA fully supports this collaborative action of the industry to adopt a harmonised practice for drawing up contracts on telecommunications services that is fair, balanced and reasonable for both the consumers and the industry.  This initiative demonstrates the responsiveness of the industry in addressing the needs and expectations of the telecommunications service users,” a spokesperson of OFTA said.
“OFTA is pleased to learn that all the major fixed and mobile network operators and one major external telecommunications services operator have agreed to follow the Industry Code and will implement the necessary measures in the coming three to six months in preparation for their full adoption of the provisions of the Industry Code for all new contracts in future,” continued the spokesperson.
“OFTA considers that the implementation of the Industry Code an important milestone for the telecommunications industry to reinforce consumers confidence in good sales and customer service practices and to build up a credible reputation for the industry,” added the spokesperson.
“The implementation of the Industry Code represents the proactive efforts of the telecommunications industry to enhance consumer interests.  The Code includes requirement which aligns with the Government’s recent legislative proposal to enhance consumer protection against unfair trade practices through amendments to the Trade Descriptions Ordinance,” the spokesperson said.
The spokesperson said that OFTA is confident that the implementation of the Industry Code will go a long way towards addressing effectively contractual related complaints and disputes.
“OFTA will monitor the implementation of the Industry Code and maintain close dialogue with the industry on need for further enhancement in future, taking into account the experience in enforcing the Code, the complaint statistics and the progress of Government’s proposed legislative amendments to the Trade Descriptions Ordinance,” the spokesperson emphasized.
Background
With a view to protecting consumers’ interest and addressing consumer complaints on contractual matters for communications services, OFTA issued a code of practice on the subject in February this year.  The code of practice aims to provide the industry with guidelines on the drawing up of communications service contracts on a voluntary compliance basis.  OFTA notes that, in drawing up the Industry Code, CAHK has made close reference to the code of practice issued by OFTA and has incorporated the key measures that OFTA has recommended, taking into account the circumstances specific to the telecommunications industry, the expectations of consumers, and the legislative proposals that have been put out for consultation by Government to tackle unfair trade practices.
The full text of the Industry Code issued by CAHK may be downloaded from CAHK’s website at http://www.cahk.hk/News/310/Industry_CoP_Telecom_Service_Contract.pdf and OFTA’s website at http://www.ofta.gov.hk/en/ca_bd/Industry_CoP_Telecom_Service_Contract.pdf .
Office of the Telecommunications Authority
21 December 2010
Press Release via OFTA