Mission, Vision, and Functions
Vision
The Consumer Council aims to be the trusted entity in striving for consumer betterment towards safe and sustainable consumption in a fair and just market.Mission
The Consumer Council carries the mission of improving consumer welfare and empowering consumers’ self-protection through conducting initiatives that are directed at the consumers and the private sector, and networking with media and government. “Consumers” are defined as consumers of goods and services, and purchasers, mortgagors, and lessees of immovable property.Functions
The Consumer Council is prescribed by the Consumer Council Ordinance to carry out the following five functions:–\1. Collecting, receiving and disseminating information concerning goods and services and immovable property
Ensuring Product Quality and Safety through * publishing Test and Research Reports and Product Study Reports, and * exchanging information on unsafe products internationally. Collecting Market Information on Services and Goods through * conducting user experience and price surveys on various topics for consumers’ reference Disseminating Consumer Information through * publication of the Choice magazine, * website, social media and online video platforms, * all-round price comparison and consumer protection tools, such as the Online Price Watch, * publicity programmes, such as the Consumer Rights Reporting Awards, and * close liaison with the media Promoting Sustainable Consumption through * product tests and dissemination of information, enabling consumers to choose more eco-friendly products Empowering Consumers through Education through * a host of education programmes, talks, workshops and training sessions, such as organising the “Consumer Culture Study Award” for secondary school students2. Receiving and examining complaints and giving advice to consumers of goods and services ad purchasers, mortgagors, and lessees of immovable properties
Forestalling and Mediating Consumer Disputes through * acting as a conciliator between consumers and traders, * exposing malpractices of traders by naming them through press conference, and * co-operates with the Police and Customs and Excise Department to keep malpractices in check3. Taking such action as it thinks justified by information in its possession, including tendering advice to the Government or to any public officer
Improving Legal Protection for Consumers through * submitting views to the Government and relevant bodies on eight consumer rights advocated by Consumers International and safeguarded by the council, such as satisfaction of basic needs, right to be heard, and receive consumer education4. Encouraging business and professional associations to establish codes of practice to regulate the activities of the members
Advocating Best Practice and Competition in the Marketplace through * encouraging responsible trade practices, and * responding to consultations conducted by government or other public bodies on consumer-related issues Representing Consumers and Networking through * working closely with local, mainland and overseas partners and stakeholders5. Undertaking other functions as necessary to uphold the aforementioned duties
Consumer Legal Action Fund * Established in 1994, a trust fund that aims to provide greater consumer access to legal remedies by providing financial support and legal assistanceConsumer Council Ordinance
Overview
The Consumer Council was established in April 1977 under the Consumer Council Ordinance (Cap. 216). The functions and powers of the council as an autonomousFunctions of and powers prescribed by the Ordinance
The Ordinance contains three major subsections – Incorporation of Powers, Financial Regulations, and General Powers, which govern the daily operations of the Consumer Council.Performance Pledge
Overview
Same as many other statutory bodies, such as theConsumer Council’s Performance Pledges
To fulfil its statutory functions stipulated in the Consumer Council Ordinance, the Council pledges to: # Answer consumer enquiries and handle complaints in a timely manner #* Performance target when handling enquiries and complaints for consumer-business disputes, and on the CHOICE Magazine in the form of the maximum amount of time needed are set up # Mediate dispute between consumers and service suppliers # Conduct researches, surveys and product testing to produce and publish useful information and results # Provide a regular outlet of information, advice and viewpoints on all matters affecting interests of consumers #* The Council occasionally makes submissions to consultation papers released by other regulatory or advisory bodies # Monitor trade practices and liaise with industry body to safeguard consumer interests # Research on consumer policy and launch consumer education campaign or related activities #* The Council regularly publishes study reports on certain products, services and markets #* The Council regularly hosts a number of public education events for consumers of all backgroundsConsumer Council’s Performance Reporting and Indicators
Performance reporting is an important means by which the Hong Kong government controls the operations of statutory bodies in a less intrusive manner to respect the bodies’ independence. For the case of the Consumer Council, however, the only key performance indicators it upholds and communicates to the public are the target time of handling public enquiries or complaints. In its Annual Report 2020–21, the only indication of outsiders’ evaluation of the council's performance is the mentioning of its staff receiving the Ombudsman's Awards 2020 for eight consecutive years.Organisation Structure
Overview
The operation of the Consumer Council is supported by a number of committees and working groups established to deal with specific areas of consumer issues, including products testing, information technology, trade practices, legal protection, etc. Members of the committees are professionals and stakeholders drawn from different sectors of the society to provide fair and just expertise. Full Council meetings are held on a bi-monthly basis.Council Members
The chairman, Vice-chairman, and members are all appointed by the Government of the HKSAR for a term not exceeding 2 years. They may be reappointed upon the expiry of their respective terms of office. The current chairman and Chief Executive of the council arSubcommittees
There are 10 subcommittees under the Consumer Council, including Staff and Finance Committee, Audit Committee, and Consumer Protection Law and Policy Committee.Organisation of the Council
Chairmen of the Council
Statutory bodies provide a basis for a certain extent of public participation in the policy process through the government's appointment. There has been academic discussion that the colonial government before and during the transitional period up to the Handover had been prioritising the interest of business and professional elites in the appointment of leaders of Hong Kong's advisory and statutory bodies. As shown below, some of the chairmen of the consumer rights-safeguarding Council pre-handover were affiliated with business or professional sectors (particularly legal service), with the remaining ones having political affiliations, and civil or public service experience. From 2003 to 2006, the government did propose to widen the participation of various social groups, such as youth, women, ethnic minorities and people with disabilities, in statutory bodies. From the list above, whilst some of the appointees post-handover remain to be elites from different professions (particularly legal service) and business sectors, there were also politicians from across the spectrum, educators, and experienced individuals in the public sector.Chief Executives of the Council
All of the Chief Executives of the council (former and current) have had experience in management in civil and public service, with their career spanning across different statutory bodies.Finance
As a not-for-profit funded statutory body, the Consumer Council derives its income mostly from Government subvention through the operational expenses of theHistory
Overview
The establishment and development over the years of the Consumer Council have largely coincided with the socio-economic growth of Hong Kong. The Consumer Council was established amidst the trend of the proliferation of statutory bodies in Hong Kong. In the 1970s, with the aim of improving the efficiency of governance, the Hong Kong government started establishing a large number of statutory bodies, which can be divided into five categories, namely: (i) policy committee, (ii) bodies that assist economic development, (iii) bodies that monitor socio-economic activities, (iv) bodies that monitor human rights situation, government performance, and reflect public opinions, and (v) bodies that carry out administrative orders. These independent and self-run statutory bodies are vested with power delegated by the government, which only sent official delegates to these bodies as mediators but not policy-instructors. They were also part of “the administrative absorption of politics” to secure policy legitimacy. In 2003, to improve the “openness, effectiveness, representativeness and transparency” of statutory bodies, theThe 1970s: The Establishment of the Consumer Council
In light of the high inflation rate due to the global oil crisis in the 1970s, there were significant discrepancies in the qualities of essential daily necessities. Therefore, the Consumer Council was founded to protect the consumer by monitoring the quality of products and services on the market.The 1980s: Foundation for the Consumer Protection Legislations
In the 1980s, Hong Kong's economy was in the transition from secondary production to tertiary production. Meanwhile, there was increased consumer awareness of service quality. As a result, the Council handled numerous complaints. With this in mind, the council had proposed numerous suggestions for various consumer protection laws.The 1990s: Foundation for Advocating Fair Competition in the Market and Enhanced Consumer Protection
With Hong Kong's rising status as the financial centre of Asia, the council had conducted various research on significant consumer and investor protection policies. As the Council plays an essential role in protecting consumer interests, the Council recognized that consumers might require assistance in pursuing their rights for consumer protection. Therefore, the Consumer Legal Action Fund was set up.The 2000s: Launch of Different Tools and Support
In the 2000s, Hong Kong was hit by SARS and a financial tsunami that had a massive impact on the economy. As a result, people became more concerned about the price of different products. The Council continued to provide information on product tests and launched different tools to assist consumers in their daily lives.The 2010s: The Council’s Focus in response to Technological Advancement
In the 2010s, online shopping became prevalent due to technological advancement. Therefore, consumers were more aware of sustainable consumption and personal data privacy. In response to the changing needs of consumers, the council also published information via diversified channels.The 2020s: The Council Proactive Response to Coronavirus Pandemic
In 2020, Hong Kong was adversely affected by COVID-19 and faced an unprecedented challenge. Hence, the Council focused on testing various anti-epidemic products and providing the latest consumer information to consumers.Publications
Study Reports
Since 1994, the council has been working on study reports covering competition in various industries to create a fair market for consumers. By disseminating information to consumers through in-depth market studies on trade practices, the Council published over 60 study reports from 1994 to 2021, featuring topics such as MPF Employee Choice Arrangement, first-hand residential property sales, and test reports on products that responded to public demand.Examples
1. Study Report on Purchase of Properties Outside Hong Kong
The Council published the study report titled “Purchase of Properties Outside Hong Kong – a Study on Enhancing Consumer Protection” in October 2021. In response to the popular demand for the purchase of properties outside Hong Kong (“POH”) in recent years, the Council found room for improvement regarding the regulation of POH and proposed recommendations to enhance consumer protection in the POH market.2. Study Report on Consumer Protection of Medical Beauty Services
The Council published the study report titled “Consumer Protection of Medical Beauty Services – A New Regulatory Regime” in December 2016. It discussed and studied critical issues in using medical beauty services. Following the scandal at a beauty centre in 2012, the Council conducted an in-depth study and proposed recommendations to avoid risks and severe consequences from malpractices in the medical beauty industry.3. The First Sustainable Consumption Report
The Council published its first sustainable consumption report titled “Sustainable Consumption for a Better Future – A Study on Consumer Behaviour and Business Reporting” in February 2016. It surveyed to develop a baseline understanding of consumers’ awareness, behaviours, and readiness toward sustainable consumption.Shopping Guide
The Council released shopping guides on its website, providing tips and information when purchasing different products and services. It covers 12 categories: 1) Home Appliances; 2) Tech-savvy; 3) Food and Cooking; 4) Silver Hair Market; 5) Family and Kids; 6) Life and Financial Planning; 7) Features; 8) Green Living; 9) Health and Beauty; 10) Leisure and Environment; 11) Trivial; and 12) Tips.CHOICE Magazine
CHOICE Magazine is a monthly magazine published by the council and the world's first consumer-related magazine in Chinese. It includes product tests, surveys and complaint cases. The first issue of CHOICE was published in 1976, with cooking oil as the first product test featured. As of 2022 April, CHOICE has already published 546 issues.Key Developments
Consultation Papers
The Council proposes suggestions to the Government and public bodies concerning different consumer issues and related legislation by releasing consultation papers.Examples
Hong Kong Electricity Market
The Council submitted its consultation paper to theCrypto-assets and Stablecoins
The Council submitted its consultation paper to theConsumer Council's Advocacy on Public Policies
Aside from being an active consumer advisory organisation, the Consumer Council is also a stakeholder in advocating for changes in consumer-related policies through its Study Reports and submissions to Consultation Papers. They have had varying degrees of influence and success in refining the policy and legal regimes on consumer protection.Study Reports
Competition Legislations
Well before the enactment of the Competition Ordinance in December 2015, the Consumer Council has advocated for introducing a comprehensive competition policy and legal regime in Hong Kong to target anti-competitive behaviours for protecting consumers’ interests through the release of the study report, titled “Competition Policy: The Key to Hong Kong’s Future Economic Success”, in 1996. Against the background that Hong Kong had undergone an economic structural change and transformed into a knowledge-based economy from the 1980s onwards, the Council identified that not all markets in the local service sectors (e.g. legal and accounting services, medical and dental services, public utilities, local radio and television broadcasting, retail banking services etc.) were highly competitive. As a result, the Council opined that a comprehensive competition legal framework should be introduced to “remove barriers to entry and ensure free competition”. In particular, the Council recommended that the proposed competition legislation should include provisions that protect consumers from (1) horizontal and vertical collusive agreements and (2) the abuse of dominant position, which was in-line with theMalpractices in Consumer Transactions
By the turn of the century, the Consumer Council had its attention on misleading advertisements in Hong Kong. In July 1999, the Council started conducting a large-scale survey on the advertisements for major categories of products on mainstream media and examining complaints it received from consumers on questionable advertising. Subsequently, the Council published the Study Report entitled “Ways to Improve the Regulation of Advertising”, which suggested that the Government should, among other options, (i) amend the Trade Descriptions Ordinance to prohibit misleading information that would lead to a distortion of competition and may cause a consumer to take detrimental decisions in the course of transactions, and (ii) enact a Control of Misleading Advertisements Ordinance that was similar to the UK Control of Misleading Advertisements Regulations 1988 and the Advertising Law of the PRC 1994. In May 2001, the Consumer Council issued a Study Report titled “Regulating Deceptive, Misleading and Unfair Practices in Consumer Transactions”. The Report noted the prevalence of deceptive and unfair sale practices in the supply of services and sale of goods, and the inadequacy of the existing laws to safeguard consumers from such business malpractices in Hong Kong. In light of the context, the council made several recommendations on amending the Trade Descriptions Ordinance (Cap.362), the Summary Offences Ordinance (Cap.228), and the Unconscionable Contracts Ordinance (Cap.458). As short-term measures, these amendments would enlarge the enforceable scope and definition of the legislations so as to cover the identified malpractices in consumer transactions. In the long-run, the Report includes the council's suggestion that the Hong Kong government should enact a comprehensive trade practice legislation to prohibit businesses from conducting deceptive, misleading, unfair and oppressive trade practices during consumer transactions. Thereafter, in his 2007-08 Budget, the then Financial SecretaryEnergy Policies
Apart from its advocacy for changes in legal regimes, the Consumer Council also focused on the structure and competitiveness of the energy sector.= 1. Towngas and Liquified Petroleum Gas
= In July 1995, the Council made a report on the towngas and liquified petroleum gas market in Hong Kong, entitled “Assessing Competition in the Domestic Water Heating and Cooking Fuel Market”. The Report noted that the Hong Kong and China Gas Company Limited (or Towngas) enjoyed a “natural monopoly” status due to technical, legal and cultural factors in the provision of water heating and cooking fuel in the local market. The phenomenon was exacerbated by the inelastic demand for towngas among local consumers, entailing the fact that consumers’ demand was not as responsive to price changes. A local scholar also suggested that Towngas had abused its market dominance to charge higher gas prices compared with most of the= 2. Auto-fuel
= The local auto-fuel market is an area that the Consumer Council has consistently studied due to the unreasonably high price of auto-fuels in Hong Kong as perceived by the general public over the years. In January 2000, the Consumer Council released the report “A Study of Motor Gasoline, Diesel and LPG Markets in Hong Kong”. The Report indicates that the auto-fuel market in Hong Kong was oligopolistic, and sheds light on the possible lack of genuine price competition between the market players. The Council put forward its recommendations to the Government in the report of (1) encouraging new entry through tackling site retailing and storage issues, (2) providing more information to encourage price competition, and (3) improving government oversight of the industry. Since its proposal of establishing a Competition Authority had not been positively received by the Government, the Council in turn proposed in this Report the creation of an Energy Commission, which could be charged with the responsibility to oversee competition for the energy sector in Hong Kong. In its study report entitled “Auto-fuel Price Monitoring Analysis” published in February 2015, the Council urged the Government to facilitate the disclosure of information on cost structure among the auto-fuel retailers. The latest Auto-fuel Price Monitoring Analysis 2020 further revealed the phenomenon of “More Going Up, Less Coming Down” in pump prices from 2013 to 2020. The Council concluded that a thorough regulatory review by the government on the auto-fuel market and empowering the Competition Commission to investigate the market should be carried out. The Council conceded that the most it could do is to draw consumers’ attention to the different price information, and as part of the effort to improve market transparency and competition, by 2021, the Government had commissioned the council to release auto-fuel retail prices and information on various types of discounts offered by retailers on a weekly basis. That being said, there is no plan on the part of the Government to conduct a complete review or overhaul of the market.Personalized Point-to-point Car Transport Service
In light of the increasing popularity of e-hailing in Hong Kong afterSubmissions to Consultation Papers
The Consumer Council regularly submits its views in response to the consultation papers issued by different governmental departments, statutory bodies and consultative bodies on the latest regulatory matters.Regulating Crypto-assets and Stablecoins
Following the Hong Kong Monetary Authority's issuance of the Discussion Paper on Crypto-assets and Stablecoins in January 2022, the Council submitted its views and suggestions for protecting consumer interests. In particular, the submission lists out the council's recommendation of adopting appropriate regulatory measures with the likes of risk assessment for cryptocurrencies. Among other recommendations, the council also suggests HKMA regulate the advertisements and sales practices on crypto-assets to reduce the risks faced by consumers.Control of Single-use Plastics
Following the Council for Sustainable Development's launch of the Public Engagement on Control of Single-use Plastics, the Council submitted its views and suggestions on the control of single-use plastic products in December 2021. Among other aspects, the Council raised the possibilities for the government to tighten the existing Plastic Shopping Bag (PSB) Levy Scheme in an attempt to reduce waste at source. Particularly, the Council suggested the raising of PSB charging level from the current HK$0.5 to HK$1–2. This coincides with one of the suggestions raised by the Council for Sustainable Development in its formal report on the Public Engagement, which was released on 14 April 2022.ESG Reporting Guide and Listing Rules of the Hong Kong stock market
Following thePublic Education
Public education is another task undertaken by the Consumer Council through a number of programmes and publications that are particularly targeted towards young students and the elderly population.Sustainable Education
The Council took part in promoting the theme of “Tackling Plastic Pollution” on the World Consumer Rights Day 2021 (15 March 2021). The Council produced a short video on social media and published an article and editorial piece in the CHOICE Magazine in March 2021 to raise public awareness on the issue of plastic waste and the 7Rs (rethink, refuse, reuse, recycle, repair and replace). To nurture sustainable consumption habits among the youth, the Council continued to run the “Earth 2038’s Learning Journey of Sustainable Consumption” in the 2020/21 school year. Funding support was provided by the Commerce and Economic Development Bureau for the programme to be sustained to 2022/23 school years. In the 2020/21 school year, there were a total of 30 primary schools with around 3,770 students participated.Education on consumption habits and values
To educate and encourage healthy consumption habits among students, the Council partnered with HKEdCity and launched a Pilot Partnership Scheme named ‘Smart Shopper Go Go Goal’ which aims at facilitating senior primary students to acquire the essential knowledge and skills for making informed consumption choices. The council also launched the annual Consumer Culture Study Award in collaboration with the Education Bureau for the studying of positive consumer values. Over 80,000 students from 368 secondary schools participated and conducted studies on consumer issues. Also, a workshop named ‘Design consumption 99%’ was launched as a sequel to the above Award in the 2020/21 school year with the participation of over 280 students and teachers, aiming to study daily consumer habits and issues.Limitation of Consumer Council
Despite the numerous publications issued by the Consumer Council as well as the effort put into driving public policies, the role of the Consumer Council has been criticised for lacking law enforcement power, ineffectiveness, and weak coordination with other government departments.Limited services
According to critics, the service provided by the Consumer Council is rather limited. The duties of the council are limited to mediating disputes, providing information about products and industries, providing views to the government, etc. However, the council's impact on government decisions is rather indirect. For instance, the theme of World Consumer Rights Day 2021 is on tackling plastic pollution, encouraging consumers around the world to adopt a more sustainable way of consumption. All the Consumer Council can do for World Consumer Rights Day was to promote the message or to encourage the government and commercial sector to be more sustainable. Yet, when it comes to what policies would be implemented to promote sustainable consumption and plastic reduction, the Consumer Council hardly has a stake in policy formulations. In terms of protecting Consumer rights, the Consumer Council receives consumer complaints involving the violation of Trade Descriptions Ordinance and Consumer Goods Safety Ordinance. Critics pointed out that the law enforcement for the violation of the two ordinances is mostly done by the Customs and Excise Department. The Consumer Council plays no more than a mediating role. When complaint cases have to be resolved in court, the Consumer Council actually lacks the power to initiate proceedings. This leads to difficulties for consumers to gather evidence and bring proceedings as consumers are mostly laymen without much legal knowledge. Although the council is willing to assist in the mediation of consumer complaints, in its 2008 study report, it was pointed out that criminal sanctions by public agencies are difficult to achieve. As a result, aggrieved consumers are faced with the daunting task of taking civil action on their own as the only redress option; apart from seeking the assistance of the council for mediation. There are also criticisms on the limited power of Hong Kong's Consumer Council. Critics compare the Consumer Council withLimited effectiveness
In 2010, theAreas of improvement identified by the Audit Commission
In 2018, theControversies
Consumer Council suspends annual journalism awards, co-hosted with the Hong Kong Journalists Association
From 2001 to 2021, the Consumer Council held the annual Consumer Rights News Reporting Awards (“CRRA”) in conjunction with theThe “discontinuation” of the appointment of Yuen, a pan-democrat, as the Committee Member of the Consumer Council
In December 2021, the Government announced that Ramon Yuen, a member of the Consumer Council, will vacate the position after finishing his two-year tenure by the end of 2021. Yuen stated that neither did he seek for vacating the position nor did the government approach him on that matter beforehand. Yuen commented that the matter did not correlate to his attendance rate, the quality of speeches or opinions, or the number of consumer cases handled to his reappointment.Criticisms by businesses against Consumer Council’s reports
In 2000, the Consumer Council reported that five popular brands of shark liver oil contain PCBs that exceeded the PCBs threshold. After the report was released, this led to a sharp decline in the sales of Shark Liver Oil in Hong Kong. In order to protect its reputation, Deep Sea Oil Ltd., an Australian manufacturer that produces shark liver oil pills publicly challenged the Consumer Council, criticising the council's uncomprehensive testing. The manufacturer commissioned thOverpayment of staff
In 2002, public institutions, including the Consumer Council, were found to have overpaid their senior staff. Consumer Council's revenue in 2000 was more than 73 million, of which 78% of the revenue went to staff salaries. On the other hand, costs of testing and education only accounted for 6% and 3.8% respectively. LeRecent Development
AI Complaint System
The government would fund more than HK$20 million to assist the Consumer Council in updating its complaint processing system to handle merchant-consumer disputes, data analysis, risk alerts, and other tasks. Paul Lam described the system to be the most advanced one in the Asia-Pacific region. He also revealed the council's plan to establish an online dispute settlement platform that allows consumers to communicate directly with businesses with the council's monitoring and mediation where necessary. The system will reportedly leverage big data and artificial intelligence to analyse and store information, which can enable the council to better understand and identify issues of consumers’ concerns.Statutory Cooling-off Period & Regulation of Overseas Property Sales
In 2021, the Consumer Council suggested to the government for establishing a "statutory cooling-off period" and regulating overseas property sales. However, due to social movements and the advent of the epidemic, the former's legislative activity has been halted, while the latter is still in the consultative phase. The Consumer Council also conducted a research report on overseas property sales, which includes legislation or amendments to relevant laws, as well as the implementation of a mandatory licensing system to control real estate brokers that manage and sell properties in Hong Kong and overseas. Closer Cross-boundary Collaboration with Consumer Protection Bodies in the Mainland and MacauLegislative Council. (2021, May 12). 立法會十二題:網上購物者的權益. Commerce and Economic Development Bureau. Retrieved April 15, 2022, from
See also
*References
External links