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| Consumer protection: OFTA Director-General MH Au said the best fixed-line service sales practice indicators have been drawn up through a consultative process involving industry participants and the Consumer Council. |
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The Office of the Telecommunications Authority has set up nine best practice benchmarks to improve fixed-line services sales practices and help safeguard consumer interests, as it releases its first report on the sector's poor selling practices.
OFTA Director-General MH Au said selling fixed-line services directly to consumers through door-to-door sales in residential estates or street booths has become an area of growing community concern.
"Mis-selling", in broad terms, involves salespeople misleading consumers into buying services in one-on-one sales situations.
Review, consultation led to benchmarks
Mr Au said OFTA identified the best-practice indicators, which aim to tackle the root of the problem, after undertaking a review of industry practices and overseas experience. They were drawn up through a consultative process with industry participants and the Consumer Council.
Mr Au also announced the resolution of a number of mis-selling cases investigated under section 7M of the Telecommunications Ordinance prohibiting misleading or deceptive behaviour.
Under the terms to resolve these cases, the four licensees involved will contribute $2.3 million towards a consumer education and awareness programme.
The licensees also undertook to implement the nine best practices to improve their services and take remedial actions with the complainants.
Awareness programme set up
The adoption of the alternative dispute resolution approach in these cases reflects a common practice among many overseas regulators, which is a pragmatic and effective way of achieving the desired outcomes in protecting consumer interests.
Jointly monitored by the Consumer Council and OFTA, the awareness programme will make use of the media to promote public awareness about how to be a smart consumer.
Mr Au said OFTA has set clear standards against misleading and deceptive conduct and operators who fail to meet the required standards will be penalised.
He stressed future cases will be assessed more rigorously and financial penalties imposed are likely to be higher than before.
Click here for details of the nine best practice indicators. The mis-selling report and the case summaries of the section 7M investigations can be downloaded here.
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