Handling of and Investigations into Complaints about Misleading or Deceptive Conduct of Telecommunications Licensees

During the period of 1 April 2012 to 31 March 2013, OFCA handled 58 complaint cases under section 7M of the TO, which prohibits misleading or deceptive conduct by telecommunications licensees. Five of these complaint cases were confirmed as infringements of the TO and resulted in financial penalties ranging from HK$50,000 to HK$300,000 being imposed on the licensees.

Handling of and Investigations into Competition Complaints in the Telecommunications and Broadcasting Sectors

During the period of 1 April 2012 to 31 March 2013, we considered five complaint cases under section 7K, 7L or 7N of the TO, which prohibits anti-competitive conduct by telecommunications licensees. After due consideration, the cases were closed with no investigations opened. During the same period, we considered three complaint cases under section 13 or 14 of the BO, which prohibits anti-competitive conduct and abuse of dominance by broadcasting licensees. After due consideration, the cases were closed with no investigations opened. During the same period, we also considered four cases under section 7P of the TO, which regulates merger and acquisition activities involving carrier licensees, and concluded that no issue was raised that required commencement of investigation under section 7P.

Preparation for the Implementation of the Trade Descriptions (Unfair Trade Practices) (Amendment) Ordinance 2012

Enacted by the Legislative Council on 17 July 2012, the Trade Descriptions (Unfair Trade Practices) (Amendment) Ordinance 2012 amended the TDO by extending its coverage to services, prohibiting specified unfair trade practices, and providing for an enhanced enforcement mechanism (collectively known as "fair trading sections"). The CA is granted concurrent jurisdiction with the C&ED to enforce the fair trading sections of the TDO in relation to commercial practices of licensees under the TO and BO directly connected with the provision of telecommunications and broadcasting services. The CA has worked closely with the Commercial and Economic Development Bureau (CEDB) and C&ED on the preparatory work for the implementation of the amended TDO, including the consultation on and issue of enforcement guidelines and the signing of a memorandum of understanding between the two enforcement agencies on co-ordinating the performance of their functions under the amended TDO. The amended TDO came into operation on 19 July 2013 when section 7M under the TO was repealed subject to transitional arrangements.

Preparation for the Implementation of the Competition Ordinance

The CO was passed by the Legislative Council on 14 June 2012. It provides for a cross-sectoral competition law prohibiting anti-competitive conduct in all sectors which has the object or effect of preventing, restricting or distorting competition. Under the CO, the CA is granted concurrent jurisdiction with the Competition Commission to enforce the CO in respect of the conduct of telecommunications and broadcasting licensees, including merger and acquisition activities involving carrier licensees in the telecommunications sector. Upon commencement of the CO, the competition provisions in the BO and TO will be repealed, subject to transitional arrangements. OFCA will assist the CA and follow up with CEDB and the Competition Commission on the preparatory work required before the commencement of the CO.

Enforcement of the Unsolicited Electronic Messages Ordinance

Do-Not-Call (DNC) Registers

Under the UEMO, we have established three DNC Registers for facsimile messages, short messages and pre-recorded telephone messages. Commercial electronic messages must not be sent to registered numbers, unless the senders have obtained consent from the registered users. By September 2013, more than 2.58 million numbers had been registered with these three DNC Registers. In addition to the requirements related to the DNC Registers, senders of commercial electronic messages are also required to comply with a number of sending rules. For example, they must provide their contact information and an "unsubscribe facility" in their commercial electronic messages.

In years 2010/11, 2011/12 and 2012/13, the total number of reports received in relation to suspected contraventions of UEMO declined to 3 025, 2 613 and 2 410 respectively. This represents a decrease in the number of reported cases by around 40%, 14% and 8%, respectively, on a year-on-year basis. This downward trend is probably due to a better understanding of the requirements under the UEMO on the part of the telemarketing industry, and a growing awareness among the public of their rights under the UEMO. We will continue to closely monitor the compliance of the senders with the rules and streamline the procedures for more effective enforcement.

Enforcement

In dealing with reports of suspected contraventions of the UEMO, we may issue advisory or warning letters. If the number of reports received against a sender is below a certain threshold, we will issue an advisory letter to the sender, requiring it to observe the requirements under the UEMO. If the number of reports received exceeds the threshold or we continue to receive negative reports about the same sender after the issuance of an advisory letter, we will conduct a formal investigation and may issue a warning letter.

In 2012/13, a total of 332 advisory letters and 69 warning letters were issued. In the event of repeated contraventions by the senders of commercial electronic messages, we may consider issuing enforcement notices directing the sender to take steps to remedy the offences. Anyone who fails to comply with the enforcement notice may be liable to a fine of up to HK$100,000 on first conviction. In 2012/13, we issued a total of eight enforcement notices.

Expansion of the Registration Scheme for Buildings with Optical Fibre Access Networks

When it was launched in 2010, the Registration Scheme for Buildings with Optical Fibre Access Networks (the Scheme) covered only residential buildings. We extended the Scheme in April 2013 to cover also non-residential buildings. As at early April 2013, the Scheme has registered over 13 500 residential buildings, representing about 2.2 million households or 84% of the total number of households in Hong Kong. Over 80% of these buildings belong to the FTTH category. In addition, over 1 500 non-residential buildings, representing 18% of all non-residential buildings in the territory, have been registered with the Scheme.

Consumer Education Programmes

In July 2012, in order to enhance public awareness of how to select and use communications services effectively, OFCA launched a consumer education campaign lasting until March 2013. With the theme of "Smart Use of Communications Services", a number of consumer education activities and programmes were organised during the period. One of the highlights was the launch of six rounds of a roving exhibition, featuring display panels which provided useful consumer tips to the public, and a game booth and photo corner, at different venues across the territory. In addition, nine public seminars and school talks, a 4-panel comic drawing competition and an online quiz game were held to encourage interactive participation by the community. A series of short videos on how to prevent "mobile bill shock" and matters to take note of when entering into telecommunications service contracts were also broadcast on different media channels. In addition to these consumer education activities, two consumer alerts were issued by OFCA in 2012/13 to educate the public on how to better protect their consumer rights.

In mid-2012, OFCA produced new television and radio Announcements in Public Interest (APIs) to publicise the establishment of the CA. The APIs are broadcast on different media channels, including local free and pay television channels, as well as radio channels. Publicity posters on the same subject have also been produced and displayed in the common areas of various premises, such as District Offices and public housing estates. The publicity programmes will continue in 2013/14.