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The Law Reform Commission has expressed disbelief at a negative government response to its proposals to boost consumer rights protection, ideas widely supported by the business sector.

The Economic Services Bureau, which is responsible for protecting consumer rights, expressed reservations about the commission's report on contracts for the supply of goods because of 'extensive implications . . . on business costs and possible increase in litigation'. The report advocates extending consumer laws to cover goods hired, bought under hire purchase or provided as a service under contract.

The report, released in February, was ordered initially by the Government to clarify legal protection regarding hired goods.

Legislation now only covers the sale of goods or supply of services.

Industry groups, including the Chinese Manufacturers' Association of Hong Kong and the Chartered Institute of Purchasing & Supply, welcomed the report, as did the Consumer Council and the Hong Kong Bar Association.

The legal manager of the Dairy Farm Group, which owns supermarket chain Wellcome, was a member of part of the subcommittee which drew up the report.

Law Reform Commission secretary Stuart Stoker said the bureau's response was surprising in view of the 'overwhelming support' to the consultation exercise.

He said the report, if adopted, 'would provide certainty for consumers and suppliers alike, and would seem more likely to lead to a reduction in litigation and business costs than the reverse, as appears to be suggested by the bureau'.

The negative response to the contracts report comes two months after legislators and legal experts criticised the Government for failing to take action on the commission's proposals.

None of the commission's ideas since the handover has been implemented.

A senior member at the commission expressed outrage at the bureau's response. The bureau also has policy responsibility towards another commission report on civil liability for unsafe products, which was released in 1998 but has yet to be acted upon due to opposition from traders and the agricultural industry.



Government reaction to consumer rights plan triggers disbelief