Replies to initial written questions raised by Finance Committee Members in examining the Estimates of Expenditure 2012-13 Director of Bureau : Secretary for Commerce and Economic Development Session No. 12 File name : cedb(cit)- doc



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Examination of Estimates of Expenditure 2012-13


Reply Serial No.




CONTROLLING OFFICER’S REPLY TO
INITIAL WRITTEN QUESTION


CEDB(CIT)119







Question Serial No.







3132




Head :

152 Government Secretariat:

Commerce and Economic

Development Bureau (Commerce,

Industry and Tourism Branch)



Subhead (No. & title) :







Programme :

(4) Posts, Competition Policy and Consumer Protection




Controlling Officer :

Permanent Secretary for Commerce and Economic Development
(Commerce, Industry and Tourism)







Director of Bureau :

Secretary for Commerce and Economic Development








Question :
Regarding the tackling of unfair trade practices, would the Administration advise on the following:
a) In the past 3 years, how many cases and complaints did the Consumer Council and the Police receive in relation to unfair trade practices each year? Among these cases, how many were eventually prosecuted and how many were convicted?
b) What is the present progress of the legislative exercise in relation to tackling unfair trade practices?
c) In 2012-13, what plans and measures will be implemented to tackle unfair trade practices? What are the manpower and the estimated expenditure involved?

Asked by : Hon. WONG Kwok-hing

Reply :
(a) The Trade Descriptions Ordinance and the Weights and Measures Ordinance contain express provisions prohibiting the unfair trade practices of false trade descriptions and inaccurate weights and measures respectively. The Customs and Excise Department is responsible for enforcing the two Ordinances. Relevant complaint and case statistics are set out in the following table:








2009

2010

2011

Trade Descriptions Ordinance

(false trade descriptions)



complaints

412

(March to December)Note



542

471

prosecution

10

66

97

conviction

7

65

55

Weights and Measures Ordinance

complaints

1 152

1 000

991

prosecution

176

156

138

conviction

176

156

138


Note The Trade Descriptions Ordinance was amended in 2008 with new provisions added to prohibit several specific forms of false trade descriptions (e.g. false or misleading price indications). The amendments took effect in March 2009. For meaningful comparisons, the above table sets out enforcement statistics after the commencement of the amendments.
The Consumer Council received 4 195, 3 943 and 3 685 complaints related to unfair trade practices (excluding those related to the Lehman Brothers incident) in 2009, 2010 and 2011 respectively. The Council acts as a mediator who seeks to resolve disputes between consumers and traders. The police does not keep statistics on unfair trade practices.
(b) The Government is committed to tackling unfair trade practices with a view to protecting consumer interests and ensuring a level playing field for business. Last year, we issued a consultation report in respect of the public consultation we conducted in 2010 and briefed the Panel on Economic Development of this Council on the consultation outcome and way forward. The Trade Descriptions (Unfair Trade Practices) (Amendment) Bill 2012 was gazetted on 24 February 2012 and was introduced into the Legislative Council for first and second reading on 29 February 2012. We will work closely with the Council with a view to completing the scrutiny of the Bill as soon as possible.
(c) In 2012-13, we will continue with the work to amend the Trade Descriptions Ordinance to prohibit commonly seen unfair trade practices. The head-count and salaries of officers involved in the exercise have been subsumed into the establishment of and provision for the Commerce, Industry and Tourism Branch of this Bureau. It is difficult to quantify them separately.


Signature










Name in block letters

Andrew HY WONG







Post Title

Permanent Secretary for Commerce and
Economic Development
(Commerce, Industry and Tourism)







Date

29.2.2012


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