In curbing hard-sell tactics, Hong Kong must strike a balance
The consultation period must be used to work out issues to ensure robust laws that protect consumers, yet allow honest operators to thrive
The government’s proposed new laws show promise for restoring confidence, but officials, businesspeople and the public should make the best use of the consultation now under way to ensure legitimate operations continue to thrive.
There is broad public support for steps to address gaps in current enforcement under the Trade Descriptions Ordinance. Long-duration contracts often involve substantial prepayments and contract commencement dates that can be deferred for decades.
Policy recommendations suggested under the two-month consultation that started on Monday include a statutory seven-day cooling-off period and a 14-day refund window for prepaid contracts.
Also proposed was a two-year limit on contract duration, aimed at helping consumers better assess whether prepayment amounts are reasonable. The city’s Customs and Excise Department could also be authorised to handle cases involving wrongful acceptance of payment.
Cooling-off periods give consumers room to breathe and reconsider decisions made under duress. They can also reduce costly litigation and deter predatory operators.