Press Release
OFTA Issues Code of Practice for Telecommunications Service Contracts
The Office of the Telecommunications Authority (OFTA)
today (12 November 2004) issued a voluntary Code of Practice for the Service
Contracts for the Provision of Public Telecommunications Services to provide
the industry with a guideline on the drawing up of service contracts.
"The Code requires, among other things, the provisions
in telecommunications service contracts should be balanced, fair, and
reasonable. Language should be plain and words legible. Salient points
of a contract, such as the compensation clauses and terms for any early
termination, should be presented in a prominent place or highlighted in
the contract. With the duration of fixed-term telecommunications service
contracts increasing to as long as 36 months, the Telecommunications Authority
(TA) believes that it is important such contracts should be prepared and
presented in a fair and transparent manner to enable consumers to make
informed choice," said an OFTA spokesperson.
Modelled on a voluntary Code of Practice for the Service
Contracts for the Provision of Public Mobile Radiotelephone Services issued
in 2001, the new Code is to be followed by local fixed telecommunications
network service (FTNS) licensees, local fixed carrier licensees, mobile
virtual network operators, Internet service providers and external telecommunications
service operators on a voluntary basis and takes immediate effect.
The Code was proposed for discussion with the industry
in late 2003 and in a consultation paper issued on 23 July 2004. Nine
submissions, available for viewing on OFTA's web site (www.ofta.gov.hk),
were received. After taking the submissions into consideration, the TA
decided that the new Code should be introduced to ensure adoption of fair
trade practices and adequate consumer protection.
"While the Code is voluntary in nature, the TA may,
on a case by case basis and to the extent that it is relevant to an issue
in question, take into account the failure of concerned licensees in complying
with the Code in enforcing any provisions of the Telecommunications Ordinance
(Cap. 106) and licence conditions. He may periodically review and publish
reports on the compliance of operators with the Code," the spokesperson
added.
The full text of the Code can be viewed on OFTA's web
site.
Meanwhile, the Code of Practice for the Service Contracts
for the Provision of Public Mobile Radiotelephone Services issued in 2001
was revised today so that the scope of it is extended to third generation
(3G) service providers.
On 23 July 2004, OFTA also issued a consultation paper
on a proposed Code of Practice on Unsolicited Doorstep Sales and Marketing
of Telecommunications Services at Residential Premises. It was an effort
to see whether there was general support of the industry to have a set
of guiding principles for establishing good trade practice on doorstep
sales activities. It seeks to halt the vicious cycle whereby operators
may escalate its aggressive sales strategy in competing with other operators.
The good trade practice will work if major operators will join on a voluntary
basis.
Eleven submissions were received. They have been posted
on OFTA's web site for public information. Given the lack of support from
operators and the absence of any linkage of the Code with the functions
and powers of the TA under the Telecommunications Ordinance, the TA considers
that it will not be meaningful to promote further the trade practice set
out in the Code.
"The TA is aware that he is not empowered by the Telecommunications
Ordinance (Cap. 106) to take action against the annoyance caused by sales
activities of telecommunications operators. Although he will not proceed
further with the introduction of the proposed Code, he would like to reiterate
his view that operators should only conduct doorsteps sales visits with
the permission of the management offices or the Incorporated Owners of
the buildings concerned. Operators should ensure that their salespersons
behave properly without causing any irritation or nuisance to the residents," explained
the spokesperson.
"As a matter of law, owners and property management
companies may take civil action against those operators which commit a
tort of trespass, i.e. remaining in private property without permission.
We have therefore published a ‘consumer alert' on our web site to enhance
public awareness on how to handle unsolicited doorstep sales visits," the
spokesperson added.
Office of the Telecommunications Authority
12 November 2004
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