The Trade Descriptions (Unfair Trade Practices) (Amendment) Ordinance (the “Amendment Ordinance”) will come into force in around mid-2013. Key changes of the Amendment Ordinance include widening of the definition of “trade description” to prohibit false trade descriptions to services as previously; the trade description was only applicable to goods. The Amendment Ordinance also introduces new unfair trade practices and enforcement mechanisms.
The Draft Enforcement Guidelines (the “Guidelines”), jointly issued by the Customs & Excise Department and the Communications Authority (either of them as the “Enforcement Agency”), shed light on what activities may be caught under the new law and how enforcement measures will be taken. The Guidelines are not to be regarded as laws or subsidiary regulations, and are currently under consultation until 17th March 2013.
NEW OFFENSES
The Amendment Ordinance sets out a number of new offences, which will apply to trades with end consumers, i.e. business-to-business trading is not covered. The offences shall apply even if the end consumer is not in Hong Kong, and will thus be applicable to online trades where trader is in Hong Kong or where Hong Kong is the trader’s usual place of business. Services rendered by certain registered professionals such as lawyers or doctors, are specifically excluded.
