Sunday, March 1, 2009

HK to enhance consumer protection through new legislation

HONG KONG, Feb. 23 (Chinese media) -- The Trade Descriptions Ordinance(Amendment)

2008 and its eight pieces of related subsidiary legislation will come into

effect on March 2, said the Hong Kong Customs here Monday.

Speaking at a press conference on Monday, Head of Trade Descriptions and

Transhipment Controls Bureau of Customs and Excise Department of Hong Kong

Marcus Lau said the amendment to the ordinance aimed to prohibit dishonest sales

practices employed by retailers to enhance protection of consumers, including

visitors to Hong Kong.

Under the new ordinance, unscrupulous trade practices prohibited will

include making false representations regarding after-sale services and

warranties for goods; giving misleading, unclear or incomplete information as to

the price of the goods set by reference to a unit of quantity; giving misleading

price indication for electronic products; and making false or misleading

representation regarding a retailer's connection with or endorsement by

individuals or bodies of good standing and reputation.

The eight pieces of newly enacted or revised sub-legislation under the

amendment ordinance give a statutory definition of diamond and natural jade.

They also raise the standard of fineness of pure gold from 990 to 999.

Retail shops selling products of gold, platinum, diamond and natural jade

are required to issue to the buyers invoices or receipts containing the

prescribed product information.

Retail shops selling five types of regulated electronic products including

digital audio players, digital camcorders, digital cameras, mobile phones and

portable multimedia players have to issue to the buyers invoices or receipts

containing the prescribed product information, including details of after-sale

services.

Under the Trade Descriptions Ordinance, retailers employing a deceptive

trade practice in the course of business are subject to the maximum penalty of a

fine of 500,000 HK dollars (about 64,102 U.S. dollars) and imprisonment for five

years.

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