Seller beware: rule change helps public get what they paid for

Rarely does a change of legislation make headlines in the entertainment news section of the newspapers. The Trade Descriptions Ordinance, as amended on July 19, is one of those rare examples.

In October, it was reported that the Customs and Excise Department - the principal enforcement agency of the revised law - met major organisers of music concerts to discuss the implications of the ordinance. Apparently the department had received complaints that some concerts failed to live up to organisers' promises. People were unhappy the events started late or that artists did not perform all the songs as promised.

Those complaints would not have been possible under the old ordinance, which applied only in respect of "goods". The revisions expand coverage to "services" - a significant change that means the service industry, such as those in entertainment, travel, cosmetics and telecommunications, is now also subject to the ordinance.

In addition, the amended law broadens the concept of "trade description" to encompass any indication with respect to the goods or services on offer, whereas under the previous legislation the term was confined to more conventional aspects such as price, composition and place of manufacture. Hence, the number of songs or dances performed in concerts may fall within the new definition.

The wide-reaching legal coverage has prompted reaction from traders. For instance, exhibitors at the annual Book Fair displayed creative tags such as "shocking price" and "friendly price" to avoid making explicit claims of offering the "lowest price". Many advertisements on air tickets and package tours now include an estimate of surcharges and taxes. Cosmetics companies toned down or removed claims of the efficacy of their products or services.

Consumers' awareness of their rights is on the rise. The agency received about 670 complaints and 3,000 enquiries during the first two months of the new law, exceeding the total number of complaints it got for the whole of last year.