HONG KONG: New regulations aimed at protecting consumers come into effect next Monday, March 2nd.

The Trade Descriptions Ordinance (Amendment) prohibits four sales practices which lawmakers consider misleading and unethical. These include deceptive pricing and making false representation concerning after-sale services/warranty for goods.

Dealers in electronic products, including mobile phones and digital cameras, are required to inform customers in advance about prices of essential parts (batteries and chargers) for which charges apply over and above the stated price for the appliance.

The revised law also provides statutory definitions for jade, diamond, gold and platinum to prevent confusion or deception.

In recent years, consumers, including tourists, have complained that some shops have engaged in fraudulent practices to cheat customers. Retailers were accused to highlighting low prices for goods on display but once customers agreed to purchase, shops would argue the sticker prices reflected the price per tael but not per catty.

In sales of high-cost jewelry, dishonest vendors provide false assessments of quantities of gold or platinum.

Addressing a press conference yesterday, Marcus Lau, Head of the Customs & Excise Department's Trade Descriptions and Transshipment Controls Bureau, reminded retailers of the requirements under the amended legislation and consumers of their new rights.

He added that vendors are required to provide customers with invoices bearing the full name/address of the retailer, the price, product name, date of supply and description of products, etc. Retailers are required to retain the records for not less than three years. In enforcing the law, Customs will enhance shop inspection. Officers will be deployed to work under cover, acting as customer.

He warned that violation of the law is subject to a maximum fine of HK$50,000 and five-year imprisonment upon conviction.

The Consumer Council, Travel Industry Council (TIC), industry and individual tourists welcomed the amendment, saying it would enhance the confidence of consumers and Hong Kong's image as a shopping paradise. The amended law clarifies responsibilities and rights for shops and customers, thus to eliminate many disputes, said TIC executive director Joseph Tung.

A Hong Kong-based mainland resident welcomed the new law because it provides greater protection for consumers.

Gary, an Australian who has visited Hong Kong three times, said he was pleased with the extra protection pertaining to after-sales service and international warranties.

(HK Edition 02/24/2009 page1)