IV. Disability Discrimination

Referring to section 2(1) of the Disability Discrimination Ordinance (“DDO”) , a disability means:

  • total or partial loss of the person’s bodily or mental functions;
  • total or partial loss of a part of the person’s body;
  • the presence in the body of organisms causing disease or illness (such as HIV/AIDS);
  • the presence in the body of organisms capable of causing disease or illness;
  • the malfunction, malformation or disfigurement of a part of the person’s body;
  • a disorder or malfunction that results in the person learning differently from a person without the disorder or malfunction (e.g. learning difficulties); or
  • a disorder, illness or disease that affects a person’s thought processes, perception of reality, emotions or judgment or that results in disturbed behaviour.

A disability includes not only a disability that presently exists, but also a disability which previously existed but no longer exists, or which may exist in the future or which is imputed to a person.

The DDO protects any person with the above disabilities against discrimination, harassment or vilification in the areas of:

  • employment (including partnerships, trade union memberships, vocational training, etc.);
  • education;
  • access to premises (property that can be accessed by the public);
  • disposal and management of premises (including private property);
  • provision of goods, services and facilities;
  • clubs and sporting activities;
  • Government activities;
  • practising as barristers (any offer of pupillage and training provided to barristers).

This protection also extends to the associates (such as spouses or parents) of the disabled persons. In other words, even if you are not a person with a disability, you are still protected under the law if:

  • you are associated with another person with a disability, and you are discriminated against because of your association with the disabled person (an associate includes a spouse, another person living with a person with a disability, a relative, a care taker, or a business/sporting/recreational partner);
  • you are imputed to have a disability (being considered as having a disability) and you are discriminated against because of this;
  • it is believed that you may have a disability in the future, and you are discriminated against because of this.

A. General matters

1. What is the general meaning of discrimination, harassment and vilification in relation to a person’s disability?

Discrimination can be direct or indirect. Direct discrimination occurs when, on the grounds of a disability, a person having a disability is treated less favourably than another person without the disability would be treated in similar circumstances. Indirect discrimination occurs when a condition or requirement is applied to everyone, but in practice affects people with a disability more adversely, is to their detriment, and such condition or requirement cannot be justified.

Harassment is any unwelcome conduct on account of a person’s disability where it can be reasonably anticipated that the person would be offended, humiliated or intimidated (e.g. insulting remarks or offensive jokes about a person’s disability).

Vilification is an activity in public which incites hatred towards, serious contempt for, or severe ridicule of people with a disability. For example, if a person speaks openly in public that people with a disability are useless and a burden to society, this may amount to vilification.

Discrimination, harassment or vilification of persons with a disability (or their associates) is unlawful under the DDO .

2. Under what circumstances can an employer refuse to employ or dismiss a person with a disability? Suppose I have a serious leg injury, does it mean that I have no chance to take up a job?

n general, it is unlawful for an employer to discriminate against a job applicant or an employee on the grounds of disability. The Disability Discrimination Ordinance (“DDO”) applies to all employers in Hong Kong unless their employees wholly or mainly work outside Hong Kong ( section 11 and section 14 of the DDO ).

However, the above protection for job applicants or employees with a disability is not absolute. An employer may specify that a job applicant or an employee should not be a person with a certain type of disability because such person would be unable to carry out the inherent requirements of that particular employment ( section 12(2) of the DDO ). For example, an employer may specify that persons who are wheelchair bound need not apply for jobs like gym instructors, as an inherent requirement of the job of gym instructors is to help people use the gym equipment and perform the relevant demonstrations.

Applying the above gym instructor example, if you have a leg injury (in which you cannot perform the demonstrations) and you apply for this job, the employer can turn down your application on the grounds that you cannot carry out the inherent requirements of the job.

3. How can one assess whether a job applicant/employee with a disability can carry out the inherent requirements of a job?

The inherent requirements of a job are those that are necessary for achieving the goals of the job (i.e. the duties and responsibilities that an employee must be able to perform/undertake). In determining whether or not a person with a disability can carry out the inherent requirements of the job, the employer is required to take into account:

  1. the person’s past training, qualifications and experience relevant to the particular employment;
  2. in the case of an existing employee, his/her work performance; and
  3. other relevant factors (e.g. Is the injury/disability a permanent or temporary one? If it is a temporary disability, when is the approximate date of recovery?).

For example, if a typist is required to type at least 50 words per minute, then typing 50 w.p.m. is an inherent requirement of this job. Having no physical disability or being without any illness may not necessarily be an inherent requirement of this job.

Applying the above typist example, if you have a leg injury (but you can type at least 50 w.p.m.) and you are now handling this job, the employer will violate the DDO if he/she dismisses you on the grounds that you cannot carry out the inherent requirements of the job.

4. How will I know if I can perform the inherent requirements of a job?

In reality, a person with a physical disability can, like other people, take up many jobs. An employer should be able to tell you about the inherent requirements of the job. To help you find out, try to get a copy of the job description beforehand and study the list of duties and responsibilities. The job interview should also be used as an opportunity to ask more questions about the nature of the work involved.

(A note to employers: If job applicants or existing employees cannot perform the inherent requirements of a particular job, employers must consider whether it is feasible to provide “reasonable accommodation” to help them perform the job duties. For more information on this matter, please go to question 7.)

5. If an employee has an infectious disease or AIDS, can the employer dismiss that person?

It may be lawful to discriminate against (including dismiss) an employee who has an infectious disease, if it is reasonably necessary for the protection of public health (i.e. to prevent the spreading of such disease to other colleagues or customers). However, it is generally NOT acceptable to dismiss a person or discriminate against them on this basis unless the job is such that there is a risk of spreading the disease through physical or bodily contact.

Under the DDO , infectious diseases are the diseases set out in Schedule 1 of the Prevention and Control of Disease Ordinance (e.g. tuberculosis and viral hepatitis) and any communicable disease specified by the Director of Health in the Government Gazette.

According to section 61 of the DDO , however, neither HIV infection nor AIDS is to be treated as an infectious disease. In that case, it may be unlawful to discriminate against an employee with AIDS.

Employers should also note that many infectious diseases can be cured after proper treatment. Therefore, the granting of sick leave is always an alternative to immediate dismissal.

Before dismissing an employee with an infectious disease, the employer must comply with the provisions of the Employment Ordinance (please refer to another topic – Employment Disputes ) and should consult a lawyer if necessary.

6. If my relative or friend is a disabled person and is being discriminated against by others, can I represent him/her to lodge a complaint with the Equal Opportunities Commission?

Yes. A person being discriminated against by others can lodge a complaint through a representative. However, the representative must show that he/she has been authorised by the complainant to lodge the complaint. For more details on how to lodge a complaint, please go to How to Complain .

7. If I’m looking for a job, can an employer require me to provide medical information/records?

An employer can ask a job applicant to provide medical information if he/she wants to use the information to determine whether the job applicant:

  • would have any infectious disease under the DDO;
  • would be able to carry out the inherent requirements of the job( section 42(3) of the DDO ); or
  • would need special services or facilities in order to perform the inherent requirements of the job ( section 42(3) of the DDO ).

If you are asked to provide medical information not for the reasons above, you can refuse to provide such information. If your employer insists on collecting such medical information, you may lodge a complaint with the Equal Opportunities Commission.

Employers must also comply with the six data protection principles (under the Personal Data (Privacy) Ordinance ) when they collect medical information from potential employees. Appropriate security measures must be taken in order to protect such information against unauthorized access.

B. Physical disability

1. If a physically disabled person can handle a particular job with some special facilities/aids, is the employer required to make the relevant adjustments/alterations at the workplace, or could the employer just refuse to employ (or dismiss) that person?

With reference to Code of Practice on Employment under the DDO (issued by the Equal Opportunities Commission), if a person with a disability can perform the inherent requirements of the job with some adjustments, including the provision of certain services or facilities, employer is required to consider making such adjustments. Making adjustments that are required to ensure equal opportunities for people with a disability is commonly referred to as providing reasonable accommodation . Reasonable accommodation may be made at any stage of employment, according to the needs of the person with the disability.

If you are a person with a physical disability, you may frankly tell your employer that all people with a physical disability want to work independently and not to depend on the help of other colleagues. Your employer must try to provide reasonable accommodation in the workplace. For example, your employer can check the access to the building, the steps, the office corridors and toilets, to see whether these facilities need any alteration; he/she may install some special facilities for people with a disability; he/she may also provide you with flexi-hours in the office, so that you can perform the inherent requirements of the job.

However, according to clause 11.8 of the Code of Practice and section 12(2) of the DDO , it may be lawful to discriminate against (e.g. refuse to employ or dismiss) a person with a disability if providing reasonable accommodation would impose unjustifiable hardship on the employer. That is to say, the person or organisation that provides the reasonable accommodation to the disabled person would suffer a lot as a result. The most typical examples of unjustifiable hardship are the poor financial circumstances of the employer, and the huge amount of expenditure (including recurrent expenditure) required to be made by the person or company claiming unjustifiable hardship.

It clearly may be difficult for persons/organisations with limited resources to spend a lot of money making adjustments in order to provide reasonable accommodation for an employee with a disability. The DDO allows the financial capacity of an organisation to be taken into account. For more information on this issue, please refer to clause 11.18 of the Code of Practice or section 4 of the DDO .

(Note that the principles of reasonable accommodation and unjustifiable hardship apply to cases relating to physical disability as well as other kinds of disability.)

If a dispute is brought to court and the employer claims unjustifiable hardship in defence of not providing reasonable accommodation, the burden of proving the expense is not justifiable falls on the employer.

In short, an employer must not claim that a disabled person cannot perform the inherent requirements of a job without first considering the provision of reasonable accommodation, or treat that person less favourably than people without a physical disability.

2. I am a wheelchair user. Do I have equal opportunities in respect of access to public buildings and social facilities?

Under section 25 of the DDO , developers and property management companies should provide access for people with a physical disability unless this would impose unjustifiable hardship (see section 4 of the DDO ). For example, a ramp for the use of wheel-chair users should be provided at the access. Buildings should have at least one lift that is suitable for wheelchair users.

Developers and property management companies should also note that providing access to people with a disability includes providing access in such a way that disabled people can use it without the help of others. In addition, handrails should be installed, and any barriers such as flowerpots or litter bins should be placed out of the way so that the access of people with a physical disability will not be hindered.

3. Toilets for people with disabilities are sometimes used as store rooms. Is this unlawful under the Disability Discrimination Ordinance?

According to section 26 and section 27 of the DDO , not providing toilet facilities for people with disabilities may be unlawful. If certain areas were shown as toilet facilities for disabled people on the architectural/building plans of the building at the time those plans were approved by the Buildings Department, the property management company, the owners, and the users/tenants of the building are not allowed to alter those facilities. The management company or the property owners should prohibit the abuse of toilet facilities for people with disabilities (e.g. the storage of goods in toilets). They should also keep the toilets clean and properly maintain the facilities inside, such as the toilet bowl, handrail and washing basin.

C. Mentally handicapped

1. My child is mentally handicapped and I have applied for a place for him at a mainstream kindergarten. The kindergarten eventually rejected me. Has the kindergarten contravened the Disability Discrimination Ordinance? If my child is admitted, does the kindergarten have a responsibility to provide special services or facilities to help him with his studies?

As mentioned before, the definition of disability under the DDO includes the total or partial loss of a person’s mental functions. This includes a mental handicap and thus you and your child are protected under the DDO . With reference to section 24 of the DDO , it is unlawful for an educational establishment (including a kindergarten) to refuse the admission of a child because of his/her disability, unless the child is not capable of performing the actions or activities reasonably required by the educational establishment in relation to students at that educational establishment.

Clause 13 of the Code of Practice on Education under the DDO (issued by the Equal Opportunities Commission) has set out some guidelines regarding admission and selection criteria. The most important of these guidelines is that educational establishments should assess the competence of applicants with disabilities using the same standard that they use for applicants without disabilities. In addition, all applicants (with or without disabilities) should go through the same selection process. Educational establishments should avoid adopting separate forms or selection panels for applicants with disabilities, unless a need for special arrangements has been identified.

If your child is admitted, the kindergarten has the responsibility to provide some special services or facilities for him in order to help him study. Examples of these special services or facilities can be found on the EOC’s leaflet . However, the kindergarten may refuse to provide such services or facilities if they would impose unjustifiable hardship on the kindergarten. For example, it is lawful for the kindergarten not to provide extra classes or visual aids to help your child if the kindergarten does not have adequate human and financial resources to do so.

For a more detailed explanation of what can be considered “unjustifiable hardship”, please refer to clause 12.3 of the Code of Practice or section 4 of the DDO .

2. If my colleagues openly tease a mentally handicapped colleague about his/her mental handicap and he/she is unhappy about it, is this discrimination?

Your colleagues’ behaviour may amount to discrimination or harassment under the DDO , if they behave that way because of your mentally handicapped colleague’s disability. If they publicly incite hatred towards, serious contempt for, or severe ridicule of, a person with a disability, this may amount to vilification.

Under the DDO , your employer has a responsibility to provide a workplace that is free from discrimination, harassment and vilification. This means that your employer may also be held responsible for your colleagues’ behaviour, even though your employer may not approve or know of it. However, your employer may be exempt from this liability if the company has already implemented a policy to handle discrimination, harassment and vilification relating to disability (e.g. complaint handling measures). For more information on such a policy, please refer to clauses 17-19 of the Code of Practice on Employment , which is issued by the Equal Opportunities Commission.

3. I want to rent a flat. The landlord and I have already agreed to all the terms and conditions. However, after learning that I am going to live with a relative who is mentally handicapped, the landlord refused to rent the flat to me. Has the landlord contravened the Disability Discrimination Ordinance?

If the landlord refuses to rent the flat to you only because your relative is mentally handicapped, he/she may have contravened section 28 of the DDO .

D. Mental illness / ex-mental illness

1. Can an employer refuse to employ me, give me less favourable employment terms, or dismiss me on the basis of my mental illness?

The definition of disability under the DDO includes a disorder, illness or disease that affects a person’s thought processes, perception of reality, emotions or judgment or that results in disturbed behaviour, and includes disabilities that previously existed but no longer exist. Thus, if you currently have a mental illness (or you used to have a mental illness but have now recovered), you are protected under the DDO as people with other types of disabilities.

In addition, the employment-related provisions under the DDO cover all employment matters including recruitment, training, promotion, employment terms, and dismissal. It may be unlawful for an employer to refuse to employ you, give you less favourable employment terms, or dismiss you on the grounds of mental illness.

The employer has to determine whether or not you can perform the inherent requirements of the job. If you cannot perform the inherent requirements of the job in question, the employer can refuse to employ you or dismiss you. However, under existing legislation, the employer has a duty to provide special services or facilities in order to help you perform the inherent job requirements as long as the provision of such services/facilities would not impose unjustifiable hardship on that employer.

As long as the employee can perform the inherent requirements of the job, the employer cannot discriminate against that employee on the grounds of mental illness.

2. Can a person or company refuse to provide goods, services or facilities to me due to my mental illness?

Under the DDO , such refusal is unlawful unless the provision of goods, services or facilities to people with mental or ex-mental illness will cause unjustifiable hardship (see section 4 of the DDO ) to the provider. Section 27 of the DDO has listed out some examples of goods, services and facilities covered by the legislation. Here is an example from daily life:

A restaurant that does not welcome diners who have a mental illness may be committing an unlawful act.

It may also be unlawful for a service provider to discriminate with respect to the terms and conditions and the form of provision of goods, services or facilities. Therefore, if a restaurant permits people with mental illnesses to dine in it, but seats them on their own, away from other diners, this may also amount to discrimination.

E. Hearing or visual impairment

1. Can a person with a hearing impairment use a hearing aid when attending a recruitment interview?

The prospective employer should allow the candidate to use the hearing aid in order to compete with other candidates on a fair basis (see clause 12.8 of the Code of Practice on Employment issued by the Equal Opportunities Commission). Treating a candidate less favourably because he/she requires the use of a hearing aid is unlawful under section 9 of the DDO .

2. Can an employer refuse to employ me on the basis of my visual impairment because the workplace is considered to be of high risk?

In a high risk workplace, the employer is obviously concerned about the health and safety of all employees. Nevertheless, this does not automatically rule out people with a visual impairment. There is sometimes an assumption that people with a visual impairment would be a danger to themselves and to others. This may not be true as it depends on the extent of the impairment and the nature and location of the work.

The same principles apply here in that the employer cannot refuse to employ you with the reason of your visual impairment alone. The employer still has to consider the issues of inherent requirements and reasonable accommodation.

F. Chronic (persistent) illness

1. Am I protected under the Disability Discrimination Ordinance if I have a chronic illness? What are some examples of chronic illness?

Yes, because the definition of disability under the DDO includes total or partial malfunction of a person’s body, the malfunction, malformation or disfigurement of a part of a person’s body, and the presence in the body of organisms causing disease or illness.

This definition covers chronic illnesses such as stroke, epilepsy, Alzheimer’s disease, retinitis pigmentosa, glaucoma, asthma, pneumoconiosis, cardiac disease, haemophilia, thalassaemia, rheumatoid arthritis, systemic lupus erythematosus, liver failure, diabetes, renal failure, spinal cord injury, ankylosing spondylitis, psoriasis, cancer, AIDS and so forth. That means if you are a person with a chronic illness, you are equally protected under the DDO , the same as people with other types of disabilities.

2. Can an employer dismiss me on the basis of my chronic illness or because I need to have regular medical treatment?

It may be unlawful for an employer to dismiss you on the grounds of your chronic illness or the regular treatment for your illness. The DDO requires employers to first analysis whether an employee can perform the inherent requirements of a job.

If the illness is so serious that makes you unable to perform the inherent requirements of your job, your employer can dismiss you. However, before doing so, your employer must provide special services or facilities to help you perform the inherent requirements of your job, unless this would impose unjustifiable hardship upon your employer. For example, the employer of an employee who has renal disease should consider allowing the employee in question to work flexible hours so as to receive proper dialysis treatment, unless this arrangement would seriously hinder his/her job.

Employers and employees must also note the provisions in the Employment Ordinance with regards to granting sick leave. For details, please go to the relevant section of the Employment Disputes topic under the CLIC website.

G. HIV/ AIDS

1. Am I protected under the Disability Discrimination Ordinance if I am infected with HIV/AIDS? If I turn up for help at any hospital or clinic, can it refuse to treat me?

The answer to the first question is “yes”, because the definition of disability under the DDO includes the presence of organisms in the body that cause or are capable of causing disease or illness. This includes HIV infection, which means if you are infected with HIV, you are equally protected under the DDO , the same as other persons with a disability.

The hospital or clinic cannot refuse to treat you on the grounds that you have HIV/AIDS, unless it can show that providing treatment to you would impose unjustifiable hardship on it ( section 4 of the DDO ). This is not expected to happen in normal circumstances.

2. If I am looking for a job, can the employer require me to take an HIV test?

An employer can lawfully request medical information from a job seeker if he/she wants to use the information to check whether the job seeker:

  • has an infectious disease as defined under the DDO (but the law specifically excludes HIV infection as an infectious disease);
  • would be able to carry out the inherent requirements of the job ( section 42(3) of the DDO ); or
  • would need special services or facilities in order to perform the inherent requirements of the job ( section 42(3) of the DDO ).

Since HIV is not listed as an infectious disease, the only reason for making a request for medical information lawfully falls within any of the three grounds mentioned above. If the HIV test is irrelevant to the inherent requirements of the job, the employer has no right to such information and you can refuse to take the test. If your employer insists, you can lodge a complaint with the Equal Opportunities Commission.

V. Family Status Discrimination

Under section 2 of the Family Status Discrimination Ordinance (“FSDO”) , family status means the status of a person who has the responsibility for the care of an immediate family member. An immediate family member is a person who is related by blood, marriage, adoption or affinity. The types of blood relationships covered include mother, father, brother, sister, son, daughter, grandmother, grandfather, grandchild, aunt, uncle, cousin, nephew and niece. The relationship of marriage is that of a husband and wife who are lawfully married. The relationship of adoption is that of a child who is lawfully adopted by a person who is not his/her natural parent. Relationships of affinity are those created by marriage, and include, for instance, mothers-in-law and fathers-in-law.

Direct discrimination may occur when a person is treated less favourably than another person on the grounds of family status. For example, a woman is transferred to a less favourable job after childbirth because her employer thinks that she has to take care of her child and will not be able to take business trips.

Indirect discrimination may occur when a condition or requirement that is not justifiableis applied to everyone, but in practice adversely affects persons who have family status. For example, a company insists that all its employees work overtime and a widower who has to take care of his young children cannot comply with that condition. The company then dismisses him. The widower feels aggrieved because, as a single parent, he cannot comply with that condition. If the company cannot justify why each and every employee must work overtime, this could be a case of indirect discrimination on the grounds of family status.

A person who has a family status is protected in the following areas:

  • employment;
  • education;
  • provision of goods, facilities or services;
  • disposal or management of premises;
  • eligibility to vote for and to be elected or appointed to advisory bodies;
  • participation in clubs;
  • activities of Government;
  • practising as barristers (any offer of pupillage and training provided to barristers).

An employer knows that dismissing a pregnant employee may be unlawful, so he intends to dismiss that employee after she has given birth to her child. Would that employer still be liable under the law?

Under section 8 of the Family Status Discrimination Ordinance , i t is unlawful for an employer to discriminate against an employee on the basis of his/her family status (i.e. the duty to take care of an immediate family member) by dismissing that employee.

There was a District Court Equal Opportunities Action in 2005 ( Lam Wing Lai v YT Cheung (Ching Tai) Ltd. ) in which the Plaintiff, who had been dismissed by her employer due to her pregnancy and family status, was awarded compensation for injury to feelings as well as loss of income.

If an employer dismisses an employee only because the employer thinks that the employee has to take care of her child and cannot work overtime or take business trips etc., then that employer would have violated the FSDO .

VI. Race Discrimination

Under the Race Discrimination Ordinance (“RDO”) , it is unlawful to discriminate, harass and vilify a person on the ground of his/her race. With the RDO in place, people of different races can live and work as one community. The RDO offers protection in several areas including the following:

  • employment;
  • education;
  • provision of goods, facilities or services;
  • disposal or management of premises;
  • eligibility to vote for and to stand for election to public bodies, etc;
  • offering of a pupillage or tenancy in a barrister’s chambers;
  • participation in clubs.

The RDO provides the following exceptions under which the decisions made because of, or having an impact on, race would not be unlawful:

  • genuine occupational qualification ( RDO section 11 );
  • employment intended to provide training for skills to be used outside Hong Kong ( RDO section 12 );
  • employment of persons with special skills, knowledge or experience ( RDO section 13 );
  • existing local and overseas employment terms ( RDO section 14 );
  • cemetery, crematorium or columbarium;
  • special measures.

For more details, please see the relevant section of ” Anti-discrimination ” under the CLIC website.

VII. How to complain

If you have been discriminated against, you should first complain to the person responsible for the discriminatory conduct. If the complaint is job-related, you can lodge a complaint with your organization’s management or seek other forms of help from your staff association or labour union (if you belong to one). If the complaint is related to the provision of goods, services, facilities, or an educational establishment, you can lodge a complaint with the relevant service providers and request improvement.

If you fail to get any positive reply after complaining to the discriminator, you can lodge a complaint with the Equal Opportunities Commission (EOC). Alternatively, you may bring your case to the District Court.

If you have been treated badly because you acted as a witness or provided information for a friend or colleague who lodged a complaint, you can also lodge a complaint of “victimisation” (see section 9 of the SDO , section 7 of the DDO , section 6 of the FSDO or section 6 of the RDO ). You should immediately inform those who are dealing with your friend’s or colleague’s complaint such as their representing lawyer or the EOC.

Remember to make a record of what has happened as soon as possible while the incident is still fresh in your mind. The information will help you recall details at a later date should you wish to lodge a complaint, or take legal action.

A. How to lodge a complaint

You need to lodge your complaint in writing and provide the following information:

  • details of the discriminatory acts and the dates involved;
  • your personal information including your name and contact information. Other information required includes: sex or state of pregnancy (for sex discrimination), nature of your disability (for disability discrimination), or marital status and number of children (for family status discrimination), or race (for race discrimination);
  • name of the discriminator/respondent (i.e. name of the person or company that discriminated against you) and their contact information;
  • information supporting your claim of discrimination, harassment, vilification or victimisation;
  • details of any detriment or emotional disturbance you have suffered because of the discriminatory acts;
  • information pertaining to any witness(es), such as their contact information and what they witnessed.

If you have difficulties in preparing a written complaint, you can call the EOC enquiry hotline at 2511 8211.

You may lodge your complaint through the EOC’s on-line complaint form , by fax at 2106 2324, by post, or in person at 16/F., 41 Heung Yip Road, Wong Chuk Hang, Hong Kong.

After a complaint is received, the EOC will first investigate the complaint and decide if the complaint has substantial grounds. If the complaint does not have substantial grounds, it will be discontinued. If there are substantial grounds, the EOC may proceed to conciliation or decide to start legal proceedings.

B. Time limit for lodging a complaint

If you would like to lodge a complaint with the EOC, you need to do it within 12 months of the incident. If you decide to take legal proceedings to the District Court, you need to do it within 24 months of the incident. You should try to seek legal advice before taking any legal action.

C. Investigation by the EOC

The EOC is required by law to investigate the complaint. Allegations by the complainant are sent to the respondent/discriminator for comment. Responses (if any) are then made available to the complainant. Witness statements are taken and pertinent materials are gathered to see if the case should be discontinued or proceed to conciliation. All information gathered during the investigation stage is kept confidential from third parties but may be used in court proceedings.

The EOC may decide not to conduct or to discontinue an investigation into a complaint if:

  • more than 12 months have passed since the discriminatory act was done;
  • the act complained of is not unlawful;
  • the aggrieved person does not desire to continue with the investigation;
  • the complaint cannot be pursued appropriately only as a representative complaint (i.e. the complaint should be personally lodged by the aggrieved person instead of being lodged through a representative);
  • the complaint is frivolous, vexatious, misconceived or lacking in substance.

When the investigation is completed, either side can also request that the case be settled through conciliation. However, conciliation is completely voluntary and either party can stop the process at any time .

The conciliator of the EOC assists both parties to examine the issues that led to the complaint, identify points of agreement and negotiate a settlement to the dispute. The conciliator does not represent either side but only acts as a facilitator.

What are the advantages of conciliation?

  • Conciliation is free;
  • It is less time consuming than going to court;
  • Unlike court cases, there is no media exposure to the individual parties;
  • It is less formal compared to court trial.

What settlement terms can I ask for during the conciliation procedure?

Terms depend on the circumstances of the dispute. Normally, it is a reversal of the situation that led to the complaint. For example, if a person was dismissed, he could ask to be re-employed. If he was denied a promotion or transfer, he could ask for the promotion or transfer. If training was denied, he could ask for the admission of the training course. Any of these items could be made as a condition in the settlement term. Other possible items include:

  • a letter of apology;
  • implement of equal opportunities policies;
  • financial settlement/compensation;
  • construction of physical access, etc. (for physical disability cases)

For more information about the conciliation procedure, please go to the EOC webpage .

D. Legal action

If the conciliation is not successful, the complainant can apply to the EOC for legal assistance to commence a civil lawsuit in the District Court. The granting of legal assistance by the EOC is not guaranteed. It may be granted if the EOC thinks that it is unreasonable, because of the complexity of the case or the complainant’s position in relation to the respondent, to expect the complainant to deal with the case unaided.

Legal assistance may include the giving of legal advice, representation by the EOC’s lawyers, legal representation by outside lawyers or any other form of assistance the EOC considers appropriate. A committee of the EOC considers all applications. If you wish to seek further information from the EOC, please click here .

If you fail to get legal assistance from the EOC, you may consider the Legal Aid Scheme run by the Legal Aid Department. Before obtaining legal aid, you need to go through a financial means test and a case merits test. For more details, please go to another topic – Legal Aid .

Any aggrieved person can also go to the District Court directly and initiate a civil lawsuit under the law without going through the EOC. However, you are strongly recommended to consult a lawyer before taking legal action.

On the other hand, the EOC cannot entertain applications for legal assistance unless you have been through its complaints system and conciliation has proved to be unsuccessful. In such cases, the EOC may grant legal assistance if it thinks it is appropriate to do so.

Examples of compensation or remedial action include damages (compensation) for injury to feelings, financial compensation (e.g. for loss of income), a written apology, or provision of reasonable accommodation (to assist the complainant to perform their work duties, or attend school, etc.).

FAQ

1. What are the major anti-discrimination ordinances in Hong Kong?

The Hong Kong Bill of Rights Ordinance ( Cap. 383 ) generally stipulates that all persons are equal before the law and the law shall prohibit any discrimination on any ground. This principle is materialized through the enactment of the following four ordinances:

Sex Discrimination Ordinance ( Cap. 480 )

  • To prohibit discrimination because of sex, marital status or pregnancy. It also prohibits sexual harassment.

Disability Discrimination Ordinance ( Cap. 487 )

  • To prohibit discrimination because of the various types of disability, including: physical disability, mental handicap, mental illness, hearing impairment, visual impairment, chronic (persistent) illness and HIV/AIDS.

Family Status Discrimination Ordinance ( Cap. 527 )

  • To prohibit discrimination because one has to take care of a family member(s).

Race Discrimination Ordinance ( Cap. 602 )

  • To prohibit discrimination against because of a person’s race.

For a brief introduction of the above ordinances, please visit Daily Lives Legal Issues > Anti-discrimination > Introduction to the existing anti-discrimination ordinances in Hong Kong .

2. What is sexual harassment? Under the Sex Discrimination Ordinance, is sexual harassment prohibited in all environments?

Sexual harassment is any unwelcome or uninvited sexual behaviour which is generally regarded as offensive, humiliating or intimidating. This includes unwelcome sexual advances or unwelcome requests for sexual favours. The harasser may incur legal liabilities and may be liable to pay compensation to the victim.

According to section 2(5) and section 2(8) of SDO , acts of sexual harassment cover those done by any person to a man or a woman. The provisions concerning sexual harassment also apply to homosexual relations. For example, a man can be sued under the SDO if he sexually harassed another man, and likewise a woman who harassed another woman.

The provisions of the SDO which govern sexual harassment do not apply to all environments. Broadly speaking, they only apply to the workplace/employment related environment and educational establishments. Section 40 of the SDO also tells us that it is unlawful for the goods/services/facilities providers to sexually harass their customers/recipients.

If you want to know more examples on sexual harassment, please visit Daily Lives Legal Issues > Anti-discrimination > Sex discrimination .

3. What is the general meaning of discrimination, harassment and vilification in relation to a person’s disability?

Discrimination can be direct or indirect. Direct discrimination occurs when, on the grounds of a disability, a person having a disability is treated less favourably than another person without the disability would be treated in similar circumstances. Indirect discrimination occurs when a condition or requirement is applied to everyone, but in practice has the effect of impacting adversely more on persons with a disability than others, and such condition or requirement cannot be justified as genuinely necessary.

Harassment is any unwelcome conduct on account of a person’s disability where it can be reasonably anticipated that the person would be offended, humiliated or intimidated.

Vilification is an activity in public which incites hatred towards, serious contempt for, or severe ridicule of people with a disability.

Discrimination, harassment or vilification of persons with a disability (or their associates) is unlawful under the Disability Discrimination Ordinance .

For more about Disability Discrimination Ordinance , please visit Daily Lives Legal Issues > Anti-discrimination > Disability discrimination .

4. Am I protected under the Disability Discrimination Ordinance if I have a chronic illness? What are some examples of chronic illness?

Yes, because the definition of disability under the Disability Discrimination Ordinance includes total or partial malfunction of a person’s body, the malfunction, malformation or disfigurement of a part of a person’s body, and the presence in the body of organisms causing disease or illness.

This definition covers chronic illnesses such as stroke, epilepsy, Alzheimer’s disease, retinitis pigmentosa, glaucoma, asthma, pneumoconiosis, cardiac disease, haemophilia, thalassaemia, rheumatoid arthritis, systemic lupus erythematosus, liver failure, diabetes, renal failure, spinal cord injury, ankylosing spondylitis, psoriasis, cancer, AIDS and so forth. That means if you are a person with a chronic illness, you are equally protected under the Disability Discrimination Ordinance , the same as people with other types of disabilities.

If you want to know whether an employer can dismiss an employee on the basis of his/her chronic illness, please visit Daily Lives Legal Issues > Anti-discrimination > Disability discrimination .

5. An employer knows that dismissing a pregnant employee may be unlawful, so he intends to dismiss that employee after she has given birth to her child. Would that employer still be liable under the law?

Under section 8 of the Family Status Discrimination Ordinance , it is unlawful for an employer to discriminate against an employee on the basis of his/her family status (i.e. the duty to take care of an immediate family member) by dismissing that employee. If an employer dismisses an employee only because the employer thinks that the employee has to take care of her child and cannot work overtime or take business trips etc., then that employer would have violated the Family Status Discrimination Ordinance .

For more details about the Family Status Discrimination Ordinance , please visit Daily Lives Legal Issues > Anti-discrimination > Family status discrimination .

6. Do employers of foreign helpers who select their helpers on the basis of race violate the Race Discrimination Ordinance?

The Race Discrimination Ordinance (“RDO”) allows employers of foreign domestic helpers to select their helpers on the basis of race. However, the other provisions in the RDO become applicable once the employment contract takes effect, which may be at the time when the helper enters Hong Kong (in the case where the helper has to wait for her/his employment visa outside Hong Kong), or when the approval to work is issued by the Immigration Department (in the case where the new helper is not required to leave Hong Kong pending the approval from the Director of Immigration). The RDO applies even when the helper has to perform her/his duties outside of Hong Kong for a short period of time, such as when the employer takes the helper along for holiday.

For more information on race discrimination, please visit Daily Lives Legal Issues > Anti-discrimination > Race discrimination .

7. What can I do if I feel I am being discriminated against?

You can take action in one or more of the following ways:

  • If the complaint is job-related, you can lodge a complaint with your organisation’s management or seek other forms of help from the staff association of your company, the labour union of your particular business/profession (if you belong to one), or social workers.
  • If the complaint is related to the provision of goods, services or facilities, you can lodge a complaint (or a request for improvement) with the provider of the goods/ services/facilities.
  • Lodge a complaint with the Equal Opportunities Commission (EOC) (Telephone no.: 2511 8211).
  • Take your case to court.

Remember to write down a record of what has happened as soon as possible while the incident is still fresh in your mind. The information will help you to recall details at a later date should you wish to lodge a complaint or take court action.

If you want to know how to lodge a complaint with the EOC, please visit Daily Lives Legal Issues > Anti-discrimination > How to complain .

I. Consumer Contracts

As a consumer, you probably enter into a number of contracts every day without even realizing it. You are actually making a contract when you catch a bus, buy a magazine, buy a packet of sweets or visit the cinema. Generally speaking, sellers (i.e. the owners of the goods you are purchasing), or service suppliers, should provide the goods or services you asked for in a reasonable and proper condition. Those goods and services should also be safe for your consumption.

A. What is a contract?

A contract is an agreement giving rise to obligations which are recognized by law and which can be enforced under the law. A contract often involves paying money in exchange for goods or services. Except for some specific types of contract (e.g. contracts for the sale of land or real estate), Hong Kong law does not require a usual consumer contract to be in writing.

Contractual obligations are based on the agreement of the contracting parties. An agreement is made when one party accepts an offer made by the other party.

B. How does a person make a legally binding contract?

The essential elements in the formation of a contract are: offer, acceptance of that specific offer, consideration, and intention to create legal obligations.

Offer

An offer is an expression of willingness, made by one party to another, to enter into a contract on specified terms. An offer will turn to a binding contract as soon as it is accepted by the other party.

An offer must be distinguished from an “invitation to treat” (an invitation to make an offer). The following example illustrates the difference:

A shopkeeper is not making an offer to you by displaying a camera in the window or on the shelves. Instead, such display is an invitation to treat. It means that you are being invited to make an offer to buy the camera but the shopkeeper can either accept or reject your offer.

Rationale: The shopkeeper has limited stock (say 10 pcs). If he has made an offer to sell by such display AND his offer is accepted by 50 customers at the same time, he would be bound to supply 50 cameras. If he cannot supply enough cameras, he would be “in breach of contract” and can be sued by those unsatisfied customers.

Acceptance

There is NO contract unless and until the other party has accepted the offer.

There are two general rules for acceptance:

  1. an acceptance has no effect until it is communicated to the person making the offer; and
  2. the person accepting an offer must agree with ALL the terms of the relevant offer.

With regard to point (1) above, an acceptance can be communicated by the spoken word (orally), by writing, or by conduct. An example of “acceptance by conduct” would be when the shopkeeper/cashier collects your money (which is paid for the relevant product) without saying or writing anything.

For point (2) above, you should note that both the offer and the acceptance must be made in the same terms with both sides clear about what they’re agreeing to.

Example: Suppose you had said, “I want to buy the digital camera that you’ve got in your window” and the shop had said, “We’ve just sold the last one that we had on a special promotional offer. We can get you another one but you will have to pay the full price”. Here the seller isn’t accepting your offer. He’s making what the law calls a “counter-offer” and asking you whether you still want to go ahead knowing that the price will increase. At this point you’re free to back out of the deal by rejecting his counter-offer. If you accept then you’re agreeing to pay the higher price.

A contract is made at the time when the deal is struck. It is not necessarily the moment when you hand your money to the seller. For example, you see an item being displayed in a shop window but because it is out of stock, you ask the shop to order one for you. If the shop agrees to do it, then you have made a contract, even if you have not signed anything nor paid any money over at that time. You have agreed to pay once the item arrives.

Consideration

“Consideration” is the legal term given to the benefits (which include money, services or goods) in exchange between the contracting parties. For instance, the money you paid and the goods delivered to you by the seller are both considerations.

No contract can be formed if one party is not bound to provide consideration to the other party. An exception to this principle is that when a contract is executed in a specific form called a “deed”, the contracting parties may or may not be required to give consideration to each other.

Intention to create legal obligations

Once you have agreed the terms of your deal and made a contract , you have a legal obligation or duty to go through with it. If you try to back out of it or violate any of the contract terms, you will be liable to be sued for breach of contract by the other party.

Is it possible that a contract would contain an implied term (without the parties’ express agreement)? What are the requirements for implying a term in a contract?

Implied terms are terms that have not been orally mentioned or written down but are incorporated in the agreement/contract according to the law or the previous dealings between the parties (if any).

Some ordinance provisions (e.g. Sale of Goods Ordinance and Supply of Services (Implied Terms) Ordinance) may be implied in a consumer contract even if the contracting parties have not mentioned about them. An example of an implied contract term is that the buyer has the right to be given reasonable time to inspect the goods (even if that term is not stated in the relevant contract).

The well-known requirements for implying a term in a written contract were stated in a judgment from the British’s Privy Council. Those requirements were adopted by the Hong Kong Court of Final Appeal in the case of Kensland Realty Ltd v Whale View Investment Ltd and Another . For a term to be implied, the following conditions (which may overlap) must be satisfied:

  1. it must be reasonable and equitable (fair to the contracting parties);
  2. it must be necessary to give business efficacy to the contract, so that no term will be implied if the contract is effective without it;
  3. it must be so obvious that “it goes without saying”;
  4. it must be capable of clear expression;
  5. it must not contradict any express term of the contract.

C. Who can make a contract?

A person with the age of 18 or above is usually qualified to make a contract. However, you should pay special attention when dealing with the following two groups of people:

1. Minor

Young people make contracts every day and the law will recognize and enforce these contracts. However, there are legal rules that prevent anyone under 18 (called minors) from making certain contracts.

Even if you’re a minor, you can enter into certain contracts and run the risk of being sued for breach of contract. It depends on whether or not the things you agreed to buy are what the law describes as “necessaries” (a legal jargon for “necessities” which means the goods suitable to the condition in life of a minor and to his/her actual requirements at the time of the sale and delivery, such as clothes or food). A minor who fails to pay for “necessaries” can be sued by the seller.

If you’re under 18, there are some types of contract that you cannot make legally, and that the law does not recognize. For examples, you cannot take out a loan, a mortgage, or to buy a flat in your own name. You cannot make a contract to buy anything which is not a “necessary”. If you have done so, the relevant contract would be void. That means that if you failed to pay for the goods, the seller couldn’t sue you to get his money back, but he could demand the return of the goods.

2. Mental Patients and Drunkards

Some people use mental illnesses or extreme drunkenness to avoid contractual liabilities. The pre-conditions are that such illnesses or drunkenness existed at the time of the transaction and prevented a party from understanding the transaction, AND the other party was aware of this condition at the time the contract was made. However, the drunkard will still be liable if he ratifies the contract (confirms the deal) when he becomes sober.

II. An overview of consumer protection

As mentioned in the previous section, you have created a legal relationship with the seller or the service supplier after entering into a contract with them. This section will then give you a general idea of the kind of rights and protection you enjoy under a consumer contract.

The Sale of Goods Ordinance ( Cap. 26 of the Laws of Hong Kong) protects those consumers who have paid money to the sellers in exchange for goods. Note that barter trade (i.e. goods are sold in exchange for other goods) is not covered under this Ordinance.

Even when consumers are buying services, rather than goods, they are also entitled to protection under the law. The Supply of Services (Implied Terms) Ordinance ( Cap. 457 of the Laws of Hong Kong) protects those consumers who have paid money (or, in this case, provided other considerations/benefits) in exchange for services.

The aforesaid ordinances, together with several other pieces of legislation that are particularly important to consumers, will be elaborated through the following questions and answers. You should also note that even if the details of these ordinances have not been mentioned by the contracting parties, they would still be implied into the relevant sale of goods or supply of services contracts.

III. The Sale of Goods Ordinance

The Sale of Goods Ordinance (“SGO”) provides that goods for sale must be:

  • Of merchantable (satisfactory) quality. Goods must meet the standard that a reasonable person would regard as satisfactory, taking account of any description of the goods, the price and all other relevant circumstances. The quality of goods includes their appearance and finish, their safety and their durability. Goods must be free from defects, even minor ones, except where these defects have been brought to your attention by the seller ( section 16 of SGO ).

  • Fit for their purposes, including any particular purpose mentioned by you to the seller. For example, if you are buying a CD player and you tell the seller that the player must also play DVDs, the seller must not give you a CD player that cannot read a DVD ( section 16 of SGO ).

  • As described on the package or a display sign, or by the seller. For example, if you are told that a shirt is 100% cotton, then it should not turn out to be cotton and polyester ( section 15 of SGO ).

  • Correspond with the sample. If you are making a bulk purchase and you were shown a sample of the goods before receiving the whole lot, the bulk shall correspond with the sample in quality. You should also be given the chance to examine the whole lot ( section 17 of SGO ).

If the sellers fail to meet any one of the above conditions, they are “in breach of contract”. Under these circumstances, consumers are entitled to reject the goods and demand a full refund (see question below).

You should also note that under section 36 of the SGO , the buyer has the right to be given reasonable time to inspect the goods.

“Goods” as defined in the SGO

The term “goods” is defined under section 2(1) of the SGO as personal property other than things in action ( which includes cheques, debentures or share certificates) and money. Personal property should also be distinguished from, and does not include, “real property” (which includes real estate such as land, buildings and flats).

“Consumer” as defined in the SGO

You are a “consumer” under section 2A of the SGO if:

  1. you neither make the contract in the course of a business (a commercial transaction) nor hold yourself out as doing so;
  2. the other party does make the contract in the course of a business (a commercial transaction); and
  3. the goods passing under or in pursuance of the contract are of a type ordinarily supplied for private use or consumption.

In other words, you are dealing as a “consumer” if you purchase goods from a businessman or a company for your private use (you are the end user) but not for business purposes (such as resell to another party for profit making).

The goods that I have ordered are delivered to me in poor condition. Can I reject the goods and ask for a refund?

Generally speaking, sellers have a duty to deliver the goods and buyers have a duty to accept and pay for the goods in accordance with the terms of the contract. Section 37 of the Sale of Goods Ordinance provides that buyers are deemed to have accepted the goods when:

  • they tell or intimate to the sellers that they have accepted the goods;
  • when the goods have been delivered to the buyers and they act in relation to the goods in a manner which is inconsistent with the ownership of the sellers (e.g. the buyers claim that they are the owners and then resell the goods); or
  • after a reasonable time they retain the goods without intimating to the sellers that they have rejected the goods (whether a “reasonable time” has elapsed can be determined by whether the buyers had a reasonable opportunity to examine the goods).

Rejection of Goods

You are entitled to reject the goods and get your money back if the goods:

  • are faulty;
  • are not of satisfactory quality;
  • do not match their descriptions; or
  • are different from the ones you ordered.

In order to make a valid rejection, there must be a clear indication that the goods were not accepted and remain at the risk of the seller (i.e. the buyer takes no responsibility for the goods). You should call the seller immediately, return the goods by yourself, or ask the person who delivered the goods to take them back.

Under section 38 of the Sale of Goods Ordinance , where goods are delivered to the buyer, and the buyer refuses to accept them with a lawful reason (e.g. the goods are not of satisfactory quality), that buyer is not bound to return them to the seller (although he may still do so). It is sufficient if that buyer intimates to the seller that he refuses to accept them.

A clear and prompt rejection is particularly important if you are not buying at a shop or on the spot. For instance, when you are ordering by phone, fax or on the internet, you don’t get to see the products until they are delivered to you, and often you have to pay in advance.

Return of Goods

If you find out some problems on the goods after accepting them , you may not be entitled to return the goods and demand a full refund. However, you can sue the seller for compensation if the seller refuses to replace the goods with the new ones.

Delivery

The seller must deliver your goods by the agreed date. The seller should let you know if the goods can’t be delivered on time. If the date for delivery has passed and you haven’t received anything, you may treat it as though you had never placed the order (if you have previously emphasized that punctual delivery is necessary). If you have already paid, demand a full refund.

IV. The Supply of Services (Implied Terms) Ordinance

When a consumer buys a service but the contract itself is silent on certain aspects, the parties can rely on the Supply of Services (Implied Terms) Ordinance (“SSO”), which provides:

  • services should be carried out with reasonable care and skill (which generally means the services must meet the standard that a reasonable person would regard as satisfactory) ( section 5 of the SSO );
  • services should be performed within a reasonable time if the time of performance has not been fixed by the contract ( section 6 of the SSO ); and
  • a reasonable charge should be paid if the charge has not been fixed by the contract ( section 7 of the SSO ).

If service suppliers fail to meet any one of the above conditions, they would be “in breach of contract”. Under these circumstances, consumers are entitled to sue defaulting suppliers for compensation.

Section 8(1) of the SSO provides that as against a party to a contract for the supply of a service who deals as a consumer, the other party (the service supplier) cannot, by reference to any contract term, exclude or restrict any liability of his arising under the contract by virtue of this Ordinance. In other words, the supplier cannot impose a contract term that excludes or restricts his liability on breach of contract.

“Consumer” as defined in the SSO

You are a “consumer” under section 4 of the SSO if:

  1. you neither make the contract in the course of a business (a commercial transaction) nor hold yourself out as doing so;
  2. the other party does make the contract in the course of a business (a commercial transaction); and
  3. the services provided to you under, or in pursuance of, the contract are of a type ordinarily supplied or provided for private consumption or benefit.

In other words, you are dealing as a “consumer” if you hire a trader or a company (or its staff) to supply services to you for your own consumption. Examples include the transportation service provided by a taxi driver, car repairing services provided by a garage, or hairdressing services provided by a salon, etc.

According to section 3 of the SSO , however, a contract of employment or a contract of apprenticeship is NOT equivalent to a contract for the supply of service.

V. The Trade Descriptions Ordinance

Some tricky sellers may provide wrong information to mislead their customers. The Trade Descriptions Ordinance , Chapter 362 , Laws of Hong Kong (“TDO”), prohibits false trade descriptions for goods ( section 7 ) and services ( section 7A ).

A. False Trade Description in relation to goods

Any person who in the course of any trade or business:

  • applies a false trade description to any goods;
  • supplies or offers to supply any goods to which a false trade description is applied; or
  • has in his possession for sale or for any purpose of trade or manufacture any goods to which a false trade description is applied

commits an offence.

1. Gold or Platinum articles

There are also regulations under the TDO dealing specifically with gold and platinum articles.

Under the Trade Descriptions (Marking) (Gold and Gold Alloy) Order ( Cap. 362A ) and Trade Descriptions (Marking) (Platinum) Orders ( Cap. 362C ), all articles made of gold, gold alloy, or platinum must bear a mark indicating the fineness of gold or platinum content in the form and manner specified. Articles made of different parts of gold or platinum of different fineness, or partly of gold or platinum and partly of other metal must also be clearly marked as such.

2. Watches

Under section 2 of the Trade Descriptions (Place of Origin) (Watches) Order ( Cap. 362D ), the place in which the movement of a watch (i.e. the main part of a watch without the watch band) was manufactured or produced is to be regarded as the place in which the watch has been manufactured or produced. However, this requirement does not apply to any watch that has been exported, or is intended to be exported, from Hong Kong to the Mainland under the Mainland and Hong Kong Closer Economic Partnership Arrangement (CEPA) and that is qualified for a zero tariff under the Arrangement.

3. Food and Drugs

Schedule 3 of the Food and Drugs (Composition and Labelling) Regulations ( Cap. 132W ) states that unless there is exemption in the Regulations or otherwise stated, the following information should be marked in either English or Chinese language or in both languages on the label of pre-packaged food:

  • name of the food;
  • list of ingredients;
  • indication of “use by” or “best before” date;
  • statement of special conditions for storage or instructions for use;
  • name and address of manufacturer or packer;
  • count, weight or volume of food.

If Chinese and English languages are used in labelling, the food name and the ingredient list of the pre-packaged food shall be labelled in both languages.

Regulation 4A of the Food and Drugs (Composition and Labelling) Regulations ( Cap. 132W ) provides that prepackaged food shall be marked and labelled in the manner prescribed in Schedule 3 . The items listed in Schedule 4 are exempt from the requirements of this regulation to the extent specified in that Schedule.

Schedule 3 states the requirement of “Count, weight or volume” in Paragraph 7 and the appropriate language in Paragraph 8.

Regulation 4B provides that prepackaged food shall be marked or labelled with its energy value and nutrient content in compliance with Part 1 of Schedule 5 .

Items exempt from Part 1 of Schedule 5 are listed under Schedule 6 .

Any person who advertises for sale, sells or manufactures for sale any prepackaged food which –

(a) is not marked or labelled in compliance with regulation 4A(1) or 4B(1) ; or

(b) has on its label any nutrition claim that does not conform to regulation 4B(5) , commits an offence and is liable to a fine at level 5 ( Criminal Procedure Ordinance ( Cap. 221 ) – Schedule 8 ) and to imprisonment for 6 months.

Schedule 7 provides for the nutrient reference values for different nutrients for the purpose of nutrition labelling and Schedule 8 states the conditions for nutrient content claim.

B. False Trade Description in relation to services

A trader who:

  • applies a false trade description to a service supplied or offered to be supplied to a consumer; or
  • supplies or offers to supply to a consumer a service to which a false trade description is applied

commits an offence.

A trader who adopts “Unfair Trade Practices” commits an offence. There are five kinds of “Unfair Trade Practices” outlined under Part IIB of the TDO .

Section 13E Misleading Omissions

A commercial practice is a misleading omission if it:

  • omits / hides / provides unclear, unintelligible, ambiguous or untimely material information;
  • fails to identify its commercial intent; or
  • causes the average consumer to make a transactional decision that he would not have made otherwise.

Section13F : Aggressive Commercial Practices

A commercial practice is aggressive if:

  • it significantly impairs the average consumer’s freedom of choice or conduct through the use of harassment, coercion or undue influence; and
  • causes the consumer to make a transactional decision that he would not have made otherwise.

Section 13G : Bait Advertising

Having regard to the nature of the market in which the trader carries on business and the nature of the advertisement, it is considered bait advertising if:

  • there are no reasonable grounds for believing that the trader will be able to offer for supply a product at the price that has been advertised, or
  • the trader fails to offer for supply the product advertised at that price for a reasonable period and in reasonable quantities.

It is not bait advertising if:

  • the advertisement states clearly how long the offer lasts or the quantity offered for supply at the advertised price; and
  • the trader offers the product for supply at that price or for that period and in that quantity.

Section 13H : Bait and Switch

A trader who makes an invitation to purchase a product at a specified price with the intention of promoting a different product and:

  • refuses to show or demonstrate the product to consumers;
  • refuses to take orders for the product or deliver it within a reasonable time; or
  • shows or demonstrates a defective sample of the product

commits an offence.

Section 13I : Wrongly Accepting Payment

A trader wrongly accepts payment if at the time of acceptance:

  • he intends not to supply the product;
  • he intends to supply a product that is materially different;  or
  • there are no reasonable grounds for believing that the trader will be able to supply the product:
    • within the period specified by the trader at or before the time at which the payment or other consideration is accepted; or
    • if no period is specified at or before that time, within a reasonable period.

C. Enforcement Guidelines

The Commissioner of Customs and Excise is the principal Enforcement Agency to determine whether the trade practices are unfair by reference to the Enforcement Guidelines. For trade practices relating to telecommunications and broadcasting, the Enforcement Agency is the Communications Authority ( sections 16BA and 16H ).

The Enforcement Guidelines cannot and do not aim to mandate traders to conduct their business in a particular way. They serve as a guide as to when conduct may constitute a contravention of the fair trading sections of the TDO .

The Guidelines are neither legally binding nor subsidiary legislation. Traders do not incur any civil or criminal liability by contravening any part of the Guidelines.

Rather than criminal proceedings, section 30L provides that the Enforcement Agencies may resolve cases in respect of conduct that constitutes an offence under specified sections by accepting a written undertaking from alleged trader if the trader undertakes not to continue/repeat/engage in conduct or commercial practice of the kind or of a substantially similar kind of concern. Acceptance or withdrawal of the undertaking is subject to the consent in writing by the Secretary for Justice. If an undertaking is accepted, the enforcement agency may not commence/continue the investigation or bring/continue the proceedings in court. The enforcement agency may also publish the accepted undertaking.

The Enforcement Agencies may apply to the court for an injunction to order a trader not to continue or repeat or engage in the contravening conduct (see sections 30P and 30Q ).

The Enforcement Agencies are more likely to institute criminal proceedings rather than seeking an undertaking in cases of serious contravention of the fair trading sections of the TDO . Factors (which are non-exhaustive) to be considered are:

  • whether the conduct continues over a long period of time or involves a series of contraventions against the same victim or same group of victims;
  • the number of victims and amount of financial loss or other detriment suffered or likely to be suffered by the victim(s);
  • whether the conduct was fabricated, with prior planning;
  • whether the victims are particularly vulnerable;
  • the prevalence of the conduct and its impact on the community, including the risk posed to public health and safety, or to the environment;
  • whether there are elements in the conduct which caused or are likely to cause harassment, anxiety or distress to the victims;
  • any attempt by the trader to conceal his identity, whether directly or indirectly, such that the Enforcement Agency or the victims (or both) cannot easily identify or trace the trader;
  • lack of remorse;
  • the trader’s compliance history and conviction record(s); and
  • whether the trader has obstructed the Enforcement Agency in taking lawful action during an investigation.

For the full content of the Enforcement Guidelines, please click here .

VI. The Consumer Goods Safety Ordinance

Goods for sale are not always safe for consumption. There are several pieces of legislation that protects consumers against faulty or dangerous goods. The most common one is the Consumer Goods Safety Ordinance ( Cap. 456 of the Laws of Hong Kong).

Under the Consumer Goods Safety Ordinance, all consumer goods (except those listed in the Schedule to the Ordinance) must comply with the general safety requirements or the safety standards and specifications prescribed by the Secretary for Economic Development and Labour. The Ordinance imposes a statutory duty on manufacturers, importers and suppliers to ensure that the consumer goods they supply are reasonably safe. The Ordinance also imposes controls on the advertising of consumer goods.

Any person who sells unsafe goods is liable to a fine and/or imprisonment. Those unsafe goods may also be seized by the Customs and Excise Department and other authorized officers.

The Consumer Goods Safety Ordinance does not prescribe mandatory safety tests on products before they are put up for sale. Sellers or suppliers are however encouraged to have their consumer goods tested by an approved laboratory to determine whether or not they are reasonably safe.

It does not necessarily mean that goods which are not covered under the Consumer Goods Safety Ordinance are “uncontrollable” or are not currently controlled. These goods are most likely regulated by separate ordinances (examples can be found in section 3 , section 5 and section 8 of the Toys and Children’s Products Safety Ordinance, Cap. 424). You may contact the Consumer Council or consult a lawyer for further details.

Warning/caution notice

The Consumer Goods Safety Regulation ( Cap. 456A ) came into operation in April 1998. The Regulation requires that any warning or caution with respect to the safe keeping, use, consumption or disposal of any consumer goods must be given in both the Chinese and English languages. Further, the warning or caution must be legible and placed in a conspicuous position on the consumer goods themselves, on any package containing the consumer goods, or be a label securely affixed to the package, or be a document enclosed within the package.

VII. Unreasonable exemption clauses and unfair contract terms

In order to avoid certain liabilities, or to exploit customers, some sellers or service suppliers may insert exemption clauses into their contracts or impose unfair terms. The law tries to stop traders from avoiding their responsibilities to the customers if they are injured or their property is lost or damaged because those traders failed to take proper care. The traders cannot hide behind cleverly worded clauses or a few lines of small print in a contract. They can still be liable to pay compensation.

A. Unreasonable Exemption Clauses

An exemption clause is used to avoid liability when things go wrong. Such a clause has to be “reasonable” before a trader can rely on it to avoid a claim brought against him/her by a consumer. In other words, the relevant exemption clause may have no effect if it is proved to be unreasonable .

The reasonableness test is satisfied if the judge concludes that the relevant exemption clause was fair and reasonable having regard to the circumstances which were, or ought reasonably to have been, known to or in the contemplation of the parties when the agreement was made ( section 3(1) of the Control of Exemption Clauses Ordinance , Cap. 71 of the laws of Hong Kong).

In considering what is “reasonable”, schedule 2 of the Control of Exemption Clauses Ordinance provides the following guidelines:

  • the strength of the bargaining positions of the parties relative to each other, taking into account (among other things) alternative means by which the customer’s requirements could have been met; whether the customer received an inducement to agree to the term, or in accepting it had an opportunity of entering into a similar contract with other persons, but without having to accept a similar term;
  • whether the customer knew or ought reasonably to have known of the existence and extent of the term (having regard, among other things, to any custom of the trade and any previous course of dealing between the parties);
  • where the term excludes or restricts any relevant liability if some condition is not complied with, whether it was reasonable at the time of the contract to expect that compliance with that condition would be practicable;
  • whether the goods were manufactured, processed or adapted to the special order of the customer.

Under normal circumstances, traders cannot escape from liability arising from the death or personal injury of a consumer if the incident happened due to the traders’ negligence (for legal proceedings relating to person injury or death, please go to “Personal Injuries” under the CLIC website).

Example

If a restaurant loses or damages property that you deposited in their cloakroom, they must prove that they have already taken reasonable care of it. They cannot simply put up notices saying something like “The management does not accept any responsibility… ” and then expect to escape from any sort of obligation to look after your property. You can challenge notices like that, if you think that such notices are unreasonable. It rests with the Court to make the final decision.

B. Unfair Contract Terms

The Unconscionable Contracts Ordinance ( Cap. 458 ) only applies to a contract for the sale of goods or supply of services in which one of the contracting parties is dealing as a consumer. If the Court finds out that the contract or any part thereof was unconscionable (unfair/not sensible) in circumstances relating to the contract at the time when it was made, the Court would have the jurisdiction under section 5 of the Unconscionable Contracts Ordinance to refuse to enforce the contract, or to enforce the remainder of the contract without the unconscionable part, or to limit the application of, or to revise or alter, any unconscionable part so as to avoid any unconscionable result.

When deciding whether or not the contract or any part of is unconscionable, the Court will consider the following points according to section 6 of the Unconscionable Contracts Ordinance :

  • the relative strengths of the bargaining positions of the consumer and the other party;
  • whether, as a result of conduct engaged in by the other party, the consumer was required to comply with conditions that were not reasonably necessary for the protection of the legitimate interests of the other party;
  • whether the consumer was able to understand any documents relating to the supply or possible supply of the goods or services;
  • whether any undue (inappropriate) influence or pressure was exerted on, or any unfair tactics were used against, the consumer or a person acting on behalf of the consumer by the other party or a person acting on behalf of the other party in relation to the supply or possible supply of the goods or services; and
  • the amount for which, and the circumstances under which, the consumer could have acquired identical or equivalent goods or services from a person other than the other party.

Example

A case about the sale of a hotel/resort service membership was heard in the Small Claims Tribunal in 2002 in which an “unconscionable” consumer contract was cancelled by the Tribunal. The Adjudicator (judge sitting at the said Tribunal) gave the following reasons to support the judgment:

  • the claimants (2 consumers) were in a week bargaining position as they had to sign a contract already prepared in a standard form provided by the defendant (a resort company);
  • the claimants did not have sufficient time to scrutinize the contract and could not seek independent advice before signing the contract;
  • the claimants suffered a “special disadvantage” because the defendant could not prove that the company owned the resort (or had the right to occupy it) when the contract was made;
  • the claimants could not use the resort before the membership fee ($115,500 to be paid by instalments) was paid up in full, and in addition must pay an annual management fee;
  • inappropriate influence or pressure was exerted on the claimants before the contract was made.

You can read the judgment of this case (in Chinese only) by clicking here.

VIII. Online shopping

Shopping on the Internet is convenient but not risk free. There are no specific legislations in Hong Kong regulating online retail business. However, some provisions in various ordinances may apply.

A. Selling counterfeit goods online

Under Section 7(1)(a)(ii) of the Trade Descriptions Ordinance (Chapter 362), it is an offence to supply or offer to supply any goods to which a false trade description is applied, that is, goods that imitate another product but were not made by the manufacturer of the product that has been imitated. This includes offering to supply such goods on the Internet.

Pursuant to section 7(1)(b) of the same Ordinance, it is also an offence to possess at home for sale via the Internet goods.

Any person who commits an offence under section 7 shall be liable to a fine of $500,000 and to imprisonment for 5 years on conviction on indictment; and on summary conviction, to a fine at level 6 (currently $100,000) and to imprisonment for 2 years.

B. Not receiving product after ordering and paying over the Internet

If the seller never had the intention to supply the advertised goods or, having received money from the purchaser decides not to supply the goods, the seller may have committed the offence of theft under sections 2 and 9 of the Theft Ordinance (Chapter 210). The sum of money paid by the buyer is considered property stolen by the seller, if the seller did not supply the goods. The maximum sentence for the offence is 10 years’ imprisonment.

In addition, the seller may have also committed the offence of “obtaining property by deception” contrary to section 17 of the Theft Ordinance (Chapter 210). If there never was an intention to supply the goods, the purchaser has been dishonestly deceived into parting with his or her money. This offence carries a maximum sentence of 14 years’ imprisonment.

The Consumer Council has issued some online shopping tips to help consumers shop safely online. You may click here to view it.

IX. Channels for Consumer Complaints

You should first contact the traders (sellers or service suppliers) directly with details of your complaint, and give them a chance to put the matter right. It is best to put your complaint in writing and include the following information:

  • date of the advertisement or the website where it appeared;
  • date your order was placed;
  • details of goods or service ordered;
  • amount paid and the method of payment;
  • any references (e.g. order number or customer reference number);
  • reason(s) for your complaint;
  • anything else you think is relevant; and
  • how you would like your claim resolved.

You should also keep copies of any letters you send along with a diary of events, and make a note of the time, the name of person you spoke to, and a brief record of what you discussed, for any telephone calls you have with the traders.

1. Besides going directly to courts, where else can consumers seek assistance or make complaints?

Other than contacting the traders directly, you may approach the following organizations:

Consumer Council

You can contact the Consumer Council to seek advice or to make a complaint ( telephone hotline: 29292222 ).

The Consumer Council is a body corporate subsidized by Government funding. Details of its power, roles and function can be found under the Consumer Council Ordinance ( Cap. 216 of the Laws of Hong Kong).

The functions of the Council are stipulated by law and include providing consumers with information on goods and services, acting as mediator in resolving consumer complaints, tendering advice on policies touching on consumer rights and interest, and encouraging businesses and professional associations to establish codes of practice.

Since the Council is not a law-enforcement body , it has no authority to sue traders. The relevant complaints are dealt with by way of mediation. However, the Council can censure trade mal-practices by naming/publicizing the traders concerned . For cases that involve significant consumer interest but cannot be resolved by mediation or other means, applications for assistance can be made to the Consumer Legal Action Fund .

Customs and Excise Department

For problems concerning “trade descriptions” or “safety of goods”, you can also complain to the Customs and Excise Department directly (general enquiry hotline- 28157711; complaint hotline – 81003553). The Department will entertain complaints concerning:

  • short weights and measures;
  • overstating the fineness of gold and platinum;
  • unsafe toys and children’s products;
  • unsafe consumer goods;
  • discrepancies involving the rough diamonds certification scheme.

For more details concerning the above, please visit the Customs and Excise Department’s webpage .

Communications Authority

For problems concerning trade practices in relation to telecommunications and broadcasting, you can complain to Communications Authority directly.

Travel Industry Council of Hong Kong (complaints against travel agents)

The Travel Industry Council (“TIC”) is entrusted with the responsibility to regulate outbound and inbound travel agents under the Travel Agents Ordinance ( Cap. 218 of the Laws of Hong Kong). Its mission is to maintain a high standard of professionalism within the industry and to protect the interests of both the traders and travellers.

The TIC provides the following services to the public:

  • handle consumer complaints;
  • to help travellers apply for ex-gratia payment from the Travel Industry Compensation Fund and financial assistance from the Package Tour Accident Contingency Fund Scheme;
  • to promote consumer awareness of travel protection and travel safety;
  • 24-hour public service hotline: 2969 8188;
  • inbound tourist service hotline: 2807 0707.

The TIC website contains a list of FAQs on possible consumer complaints for inbound travel and outbound travel .

Food and Environmental Hygiene Department

The mission of Food and Environmental Hygiene Department (“FEHD”) is to work hand in hand with the community in building Hong Kong into a world-class metropolis renowned for its food safety and public hygiene.

Contact details:

  • address: 44/F Queensway Government Offices, 66 Queensway, Hong Kong;
  • fax: 2869 0169;
  • 24-hour enquiry and complaint hotline: 2868 0000;
  • e-mail: enquiries@fehd.gov.hk

The Insurance Claims Complaints Bureau

The Insurance Claims Complaints Bureau (“ICCB”) is a self-regulatory initiative implemented by the insurance industry to protect consumer interest. One of the main objectives of ICCB is to receive referrals for complaints relating to claims arising out of personal insurance policies and to facilitate the settlement or withdrawal of such complaints, disputes or claims whether by the making of awards (decisions/verdicts), or by such means as shall seem expedient.

For more information, please refer to “Insurance” under the CLIC website.

2. If consumers have to institute legal proceedings, what should they pay attention to?

Apart from complaining to the Consumer Council or the Customs and Excise Department, you can seek the advice of a solicitor. There is always the option of going to court. Sometimes, just telling a bad trader that you may go to court is enough to get your complaint sorted out.

Small Claims Tribunal

If you do decide to go to court, there is a special way of suing for small amounts by using the small claims procedures in the Small Claims Tribunal. No person can be represented by a lawyer in the Small Claims Tribunal (but you can consult a lawyer before attending the Tribunal’s hearing).

The most you can claim by using the small claims procedures is HK$75,000. If the claim exceeds $75,000, you are not allowed to subdivide it in order to bring to the Tribunal a number of cases that are each below the $75,000 limit. The only way you can bring a claim in excess of the $75,000 limit before the Tribunal is if you abandon any amount above $75,000.

Types of claims can be handled by the Small Claims Tribunal include:

  • debts;
  • service charges;
  • damage to property;
  • consumer claims (e.g. claims relating to goods or services with poor quality).

Before commencing a formal trial at the Tribunal, the Adjudicator (Tribunal’s judge) and the Tribunal Officer will attempt to mediate the dispute between the parties. If both parties agree to settle, the Tribunal will grant a written consent order and further trials or hearings can be avoided.

For details about the procedures and fees for hearings at the Small Claims Tribunal, please visit the Judiciary’s webpage .

If the parties cannot reach an amicable settlement at the first hearing, you need to get ready for the subsequent trial. To get more information about how to prepare for the trial (from both the Claimant’s and the Defendant’s perspective), please go to “Bringing or Defending a Civil Case” under the CLIC website.

District Court or High Court

If the amount of your claim is over $75,000, you must submit your claim to the District Court or the High Court. The maximum claim that can be handled by the District Court is $3,000,000. While for the High Court, there is no upper limit on the claim amount. Since the claim amount is bigger and the procedures involved are much more complex, you are strongly advised to find a lawyer to represent you in any proceedings in these 2 courts.

Financial assistance for consumer legal actions

Consumer Legal Action Fund

The Consumer Council also runs a Consumer Legal Action Fund (“the Fund”), which will assist consumers to pursue their matters in courts.

You can apply for legal assistance under the Fund if you are a consumer or a group of consumers involved in a matter which:

(a) relates to consumer transactions, such as:

  1. unmerchantable (poor quality) goods, including food and drugs;
  2. unfair and unconscionable contract terms;
  3. unreasonable exemption clauses in consumer contracts;
  4. false or misleading advertising claims;
  5. false trade descriptions;
  6. any other case of significant consumer interest; or

(b) involves significant public interest or injustice (e.g. other consumers may be affected if the defaulting trader continue to do business).

In order to be eligible for the Fund, normally you must have already exhausted all other means of resolving the dispute in question, and be unable to qualify for any form of legal aid.

Applicants for assistance under the Fund need not undergo a mandatory means test in order to qualify for assistance. However the Trustee may take into account an applicant’s financial resources in deciding whether to accept or reject a particular case.

There is a non-refundable application fee payable at the time of application. If your case is to be tried in the Small Claims Tribunal, the application fee is HK$100. If your case is to be tried in the District Court or other higher courts, the application fee is HK$1,000.

If your case is unsuccessful, you need not make any further payment. The Fund pays for all your costs and expenses. On the other hand, if your matter is successful, you will be asked to pay a contribution to the Fund.

For more information about the Fund, please visit the Consumer Council’s webpage .

If you want to obtain an application form for the Fund, the Consumer Council has provided the form. Please click here to download the form.

Legal Aid

If you are not submitting your claim to the Small Claims Tribunal, and wish to have it tried in the District Court or the High Court, you may apply for legal aid if you satisfy certain conditions set out by the Legal Aid Department. For details, please go to “Legal Aid” under the CLIC website.

X. Case Illustration

Scenario

Mr. B and his wife (Ms. C) are very unlucky, so that they have to face the following problems with some sellers and service suppliers:

1. He took his clothes to a dry cleaner but the clothes were subsequently damaged by the cleaner. Can he claim against the dry cleaner?

The law says the service supplier (dry cleaner) has to take reasonable care of customer’s (Mr. B’s) property. If the dry cleaner fails to do the job properly, Mr. B can ask him to do it again. If the clothes have been ruined, then the dry cleaner will have to fix them or make compensation.

It may be difficult to work out exactly how much money that Mr. B would be entitled to. He has to take into account how old the clothes were and how much wear he has already gotten out of them. Even though there was a notice saying something like “all garments cleaned entirely at customer’s risk”, Mr. B can still make his claim. If the dry cleaner has made a mess of the job then a notice like this won’t shield him. An exemption has to be reasonable before it can be enforced (see: VII. Unreasonable exemption clauses and unfair contract terms ).

2. He has purchased some goods but later he demanded a refund. What will happen if the shopkeeper refuses to give him his money back?

It all depends on the reason for Mr. B’s refusal. He is not entitled to a refund if:

•  he has just changed his mind about the item purchased;
•  before confirming his order, he was told that the goods were damaged or the fault was so obvious that he should have noticed it;
•  he damaged the goods by himself;
•  he subsequently altered the goods (e.g. took up the hem on a skirt); or
•  he has kept the goods for quite a long time without letting the seller know that there was something wrong with the goods (see: III. The Sale of Goods Ordinance ).

3. He took his computer to a shop for repair. When he collects it later he can’t believe that the service charge is so high. He would never have agreed to the job if he had known it would be that expensive. Can he refuse to pay the repair charge?

If the price has not been confirmed before completing the job, the repairer is entitled to charge a “reasonable” rate for the work ( section 7 of the Supplied of Services (Implied Terms) Ordinance ). If Mr. B does not pay what the repairer asks, the repairer is legally entitled to hold onto Mr. B’s computer until he pays the fee.

Even though Mr. B may think that he is being overcharged, he will have to pay the money if he wants his computer back. But in the meantime, Mr. B can make it clear to the repairer that he pays the fee “under protest” and that he intends to dispute it .

Mr. B will need to find out what other repairers would have charged for doing the same job. He shall then put it down in writing and send a letter to the repairer confirming that he was paying the bill under protest and demand a refund of the overcharged portion. If the repairer refuses to make a refund, Mr. B can take his case to the Consumer Council or the Small Claims Tribunal (please go to IX. Channels for Consumer Complaints ).

4. He put a deposit down for a car but then has second thoughts. Can he withdraw from the deal and ask for a refund of his deposit?

It is likely that Mr. B will lose his deposit. He has broken his contract with the seller, and the seller is entitled to compensation.

If Mr. B is asked to put down a deposit (but he is hesitated to confirm the order), he may ask whether or not the deposit is refundable. He may then request the seller to put that down in writing in order to avoid future arguments.

5. He took his camera for repair but the shop lost it. Can he obtain any compensation?

The repairer is required to take reasonable care of Mr. B’s camera and therefore Mr. B is entitled to compensation. If the repairer doesn’t provide other compensation then he must supply a new camera to Mr. B. Sometimes it may be very difficult to assess the actual amount of loss and further negotiations between both parties may be required.

6. He received something in the mail that he has never ordered. Does he have to pay for it?

Mr. B does not owe any money if he receives an item that he has never ordered. If he gets bills or collection letters from a seller who sent him something he has never ordered, he can write to the seller stating the facts and ask the trader to take the goods back. If the bills continue, he should insist the seller to send him the proof of his order. If this still doesn’t stop the bills, Mr. B can try to seek assistance from the Consumer Council .

If Mr. B sent for something in response to an advertisement claiming a free gift or trial period, but is now being billed, he should re-check the whole advertisement in detail. It may say something about charging shipping and handling, or worse, he may have inadvertently joined a club or subscribed to a magazine. He should then write to the seller offering to return the goods and stating that he believes the advertisement was misleading.

7. Ms. C has recently purchased some coupons (prepaid coupons) from a beauty salon but that salon suddenly closes down. Can she claim her money back and by what means?

There is little safeguard on consumer interest in prepayment scheme or coupons. In some cases, a company closes down some time after it has gone into liquidation. In some other cases, a company’s business comes to an end without prior notice to the outside world. The reasons for a company’s demise can be just as diverse: there may be financial difficulties, fierce competition, retirement, fraud, personal reasons and so forth. Consumers who find themselves in such an unfortunate situation may seek legal advice from lawyers, or contact the Consumer Council and the Police.

If a winding-up order has been granted against the company (in case it is a limited company), then the aggrieved consumers are legally entitled to recover their payment for the tickets. However, the consumers will only be treated as ordinary or unsecured creditors on claiming their loss. In reality, this means that the consumers will usually recover no more than a small proportion of the debt.

In order to be eligible as one of the creditors in a winding-up action, Ms. C has to prove that the company owes her money by completing a Proof of Debt Form (Form 63A) . She must also submit the form to the provisional liquidator or liquidator, together with documentary evidence, if any, after the winding-up order has been made against the company. For more details, please refer to “Bankruptcy, Individual Voluntary Arrangement and Winding-up of Companies” under the CLIC website.

If the company closes down suddenly without leaving any assets, the prospect of consumers (holding pre-paid coupons or vouchers) recovering their loss is usually very slim.

FAQ

1. Some tricky sellers may provide wrong information to mislead their customers. How am I protected against false descriptions made by sellers?

The Trade Descriptions Ordinance , Chapter 362 , Laws of Hong Kong (“TDO”), prohibits false trade descriptions for goods ( section 7 ) and services ( section 7A ).

False Trade Description in relation to goods

Any person who in the course of any trade or business:

  • applies a false trade description to any goods;
  • supplies or offers to supply any goods to which a false trade description is applied; or
  • has in his possession for sale or for any purpose of trade or manufacture any goods to which a false trade description is applied

commits an offence.

False Trade Description in relation to services

A trader who:

  • applies a false trade description to a service supplied or offered to be supplied to a consumer; or
  • supplies or offers to supply to a consumer a service to which a false trade description is applied

commits an offence.

A trader who adopts “Unfair Trade Practices” commits an offence. There are five kinds of “Unfair Trade Practices” outlined under Part IIB of the TDO :

  • Misleading Omissions
  • Aggressive Commercial Practices
  • Bait Advertising
  • Bait and Switch
  • Wrongly Accepting Payment

For more details, please go to Daily Lives Legal Issues > Consumer rights > The Trade Descriptions Ordinance .

2. In order to avoid certain liabilities, or to exploit customers, some sellers or service suppliers may insert exemption clauses into their contracts or impose unfair terms. Are these terms valid under the law?

The law prohibits sellers or service suppliers to avoid their responsibilities to customers if the latter are injured or property is lost or damaged due to the failure of the traders to take proper care. Sellers and service suppliers cannot hide behind cleverly worded clauses or a few lines of small print in a contract. They can still be liable to pay compensation.

Unreasonable Exemption Clauses

An exemption clause is used to avoid liability when things go wrong. Such a clause has to be “reasonable” before sellers and service suppliers can rely on it to avoid a claim brought against them by consumers. In other words, the relevant exemption clause may have no effect if it is proved to be unreasonable. Under normal circumstances, sellers or service suppliers cannot escape from liability arising from the death or personal injury of a consumer if the incident happened due to the traders’ negligence.

Unfair Contract Terms

The Unconscionable Contracts Ordinance ( Cap. 458 ) applies only to a contract for the sale of goods or supply of services in which one of the contracting parties is a consumer. If the Court finds out that the contract or any part thereof was unconscionable (unfair/not sensible) in circumstances relating to the contract at the time when it was made, the Court would have the jurisdiction under section 5 of the Unconscionable Contracts Ordinance to refuse to enforce the contract, or to enforce the remainder of the contract without the unconscionable part, or to limit the application of, or to revise or alter, any unconscionable part so as to avoid any unconscionable result.

For more about unreasonable exemption clauses and unfair contract terms, please visit Daily Lives Legal Issues > Consumer rights > Unreasonable exemption clauses and unfair contract terms .

3. Where can consumers seek assistance or make complaints?

Other than contacting the sellers or service suppliers directly, you may approach the following organizations:

Consumer Council

The Consumer Council is a body corporate subsidized by Government funding. The functions of the Council are stipulated by law, which include providing consumers with information on goods and services, acting as mediator in resolving consumer complaints, tendering advice on policies touching on consumer rights and interest, and encouraging businesses and professional associations to establish codes of practice.

Since the Council is not a law-enforcement body, it has no authority to sue sellers or service suppliers. The relevant complaints are dealt with by way of mediation. However, the Council can censure trade mal-practices by naming/publicizing the sellers or service suppliers concerned. For cases that involve significant consumer interest but cannot be resolved by mediation or other means, applications for assistance can be made to the Consumer Legal Action Fund.

Consumer Council hotline: 29292222

Customs and Excise Department

For problems concerning “trade descriptions” or “safety of goods” (short weights and measures, overstating the fineness of gold and platinum, unsafe toys and children’s products, etc.) you can complain to the Customs and Excise Department directly.

General enquiry hotline: 28157711
Complaint hotline: 81003553

Travel Industry Council of Hong Kong (complaints against travel agents)

The Travel Industry Council (“TIC”) is entrusted with the responsibility to regulate outbound and inbound travel agents under the Travel Agents Ordinance ( Cap. 218 of the Laws of Hong Kong). Its mission is to maintain a high standard of professionalism within the industry and to protect the interests of both the traders and travellers.

TIC 24-hour public service hotline: 2969 8188
Inbound tourist service hotline: 2807 0707

Food and Environmental Hygiene Department

The mission of Food and Environmental Hygiene Department (“FEHD”) is to work hand in hand with the community in building Hong Kong into a world-class metropolis renowned for its food safety and public hygiene.

24-hour enquiry and complaint hotline: 2868 0000

The Insurance Claims Complaints Bureau

The Insurance Claims Complaints Bureau (“ICCB”) is a self-regulatory initiative implemented by the insurance industry to protect consumer interest. One of the main objectives of ICCB is to receive referrals for complaints relating to claims arising out of personal insurance policies and to facilitate the settlement or withdrawal of such complaints, disputes or claims whether by the making of awards (decisions/verdicts), or by such means as shall seem expedient.

24-hours telephone information service line: 2520 2728

For more information, please visit Daily Lives Legal Issues > Consumer rights > Channels for consumer complaints .

4. If consumers have to institute legal proceedings, what should they pay attention to?

Small Claims Tribunal

The most you can claim by using the small claims procedures is HK$75,000. No person can be represented by a lawyer in the Small Claims Tribunal (but you can consult a lawyer before attending the Tribunal’s hearing). Types of claims can be handled by the Small Claims Tribunal include debts, service charges, damage to property, and consumer claims (e.g. claims relating to goods or services with poor quality).

District Court or High Court

If the amount of your claim is over $75,000, you must submit your claim to the District Court or the High Court. The maximum claim that can be handled by the District Court is $3,000,000. While for the High Court, there is no upper limit on the claim amount. Since the claim amount is bigger and the procedures involved are much more complex, you are strongly advised to find a lawyer to represent you in any proceedings in these two courts. You may also apply for legal aid if you satisfy certain conditions set out by the Legal Aid Department.

Consumer Legal Action Fund

The Consumer Council runs a Consumer Legal Action Fund (“the Fund”), which will assist consumers to pursue their matters in courts. If you are an eligible consumer or a group of eligible consumers involved in a matter which relates to consumer transactions, or involves significant public interest or injustice, you can apply for legal assistance under the Fund.

For more details, please visit Daily Lives Legal Issues > Consumer rights > Channels for consumer complaints .

5. Recently I have purchased some coupons (prepaid coupons) from a beauty salon but that salon suddenly closes down. Can I claim my money back and by what means?

Consumers who find themselves in such an unfortunate situation may seek legal advice from lawyers, or contact the Consumer Council and the Police. If a winding-up order has been granted against the company (in case it is a limited company), then the aggrieved consumers are legally entitled to recover their payment for the tickets. However, the consumers will only be treated as ordinary or unsecured creditors on claiming their loss. Consumers will usually recover no more than a small proportion of the debt. If the company closes down suddenly without leaving any assets, the prospect of consumers (holding pre-paid coupons or vouchers) recovering their loss is usually very slim.

If you want to read more case illustrations regarding consumer complaints, please visit Daily Lives Legal Issues > Consumer rights > Case illustration .