Telecommunications Industry Implemented the Revised “Industry Code of Practice for Telecommunications Service Contracts” to Enhance Consumer Protection


All major fixed and mobile network operators in Hong Kong have implemented the revised Industry Code of Practice for Telecommunications Service Contracts (“Industry Code”) from 1 May 2015 onwards. The Office of the Communications Authority (“OFCA”) today (4 May 2015) compliments this industry initiative and is confident that the revised Industry Code will further enhance consumers protection as and when they sign up telecommunications service contracts.

The Industry Code, which was promulgated by the Communications Association of Hong Kong (“CAHK”), an industry association representing the communications sector in Hong Kong, is a self-regulatory initiative of the telecommunications industry. The Industry Code aims at drawing up contracts that are fair, balanced and reasonable for both consumers and the industry, and providing improvement measures to address major concerns in the complaints lodged by consumers in relation to telecommunications service contracts which include contract content, as well as arrangements for contract termination, contract renewal and customers’ service relocation requests. The Industry Code is applicable to telecommunications service contracts signed or renewed by personal and residential users. The telecommunications industry has implemented the Industry Code since July 2011.

“The numbers of complaints received by OFCA involving telecommunications service contractual disputes have been declining continuously since July 2011, from 1 116 in 2012 to 894 in 2013 and further down to 588 in 2014. We consider that the Industry Code has effectively improved the transparency in the contracting process and customer satisfaction, as well as reduced the number of disputes on contracts,” a spokesperson of OFCA said.

Having reviewed and analysed the consumer complaints on contractual disputes received since the implementation of the Industry Code, OFCA has made a number of suggestions to CAHK to further improve the Industry Code. CAHK and the participating operators have accordingly revised the Industry Code in October 2014. Major revisions of the revised Industry Code include:

The revised Industry Code has taken effect starting from 1 May 2015.

OFCA’s advice to consumers is that, before signing up a new contract or renewing an existing contract, they should read through and understand the content of the contracts, drawing reference from the revised Industry Code where necessary, seeking clarification from operators on any of the contract terms in case of doubt. On such issues of consumers’ concerns such as arrangements for contract renewal/termination, calculation of monthly charge, and arrangements for customer moving location etc., consumers should request the operators to confirm that their service contracts are in compliance with the revised Industry Code.

“OFCA will continue to closely monitor the implementation of the revised Industry Code and its effectiveness and, taking into account the experience from the implementation and the feedback of consumers, continue to work closely with the industry to enhance and improve consumer protection under the Industry Code. We will also organise public education activities to assist the public in understanding the protection provided by the revised Industry Code,” the spokesperson continued.

Please visit CAHK’s website for the full text of the revised Industry Code:
https://www.cahk.hk/storage/files/ba3ff60fc90368446882de2ba9efb15d.pdf

or OFCA’s website:
http://www.ofca.gov.hk/en/consumer_focus/alerts/tsc/cpic/index.html

Office of the Communications Authority
4 May 2015