Consumer Council

The Consumer Council is an independent statutory authority in Hong Kong, established in 1974 and formalised in April 1977 under the Consumer Council Ordinance. Its role is to enhance consumer welfare and empower consumers to protect themselves. Over the course of the past four decades the expansion in the council's duties and services on consumer protection, such as the publishing of the CHOICE Magazine in 1976, the recent launch of online price-watching tools, and conducting studies on different aspects of the consumer market, have coincided with the socio-economic development of Hong Kong. Apart from being a consumer advisor, it has assumed the role as a key stakeholder in making of consumer-related policies.
The chairman, vice-chairman, and members of the council are all appointed by the Chief Executive of the HKSAR for renewable terms of two years.

History

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Overview

The establishment and development over the years of the Consumer Council have largely coincided with the socio-economic growth of Hong Kong.
The Consumer Council was established amidst the trend of the proliferation of statutory bodies in Hong Kong. In the 1970s, with the aim of improving the efficiency of governance, the Hong Kong government started establishing a large number of statutory bodies, which can be divided into five categories, namely: policy committee, bodies that assist economic development, bodies that monitor socio-economic activities, bodies that monitor human rights situation, government performance, and reflect public opinions, and bodies that carry out administrative orders. These independent and self-run statutory bodies are vested with power delegated by the government, which only sent official delegates to these bodies as mediators but not policy-instructors. They were also part of “the administrative absorption of politics” to secure policy legitimacy.
In 2003, to improve the “openness, effectiveness, representativeness and transparency” of statutory bodies, the Home Affairs Bureau issued a Consultation Paper on the Review of the Role and Functions of Public Sector Advisory and Statutory Bodies. In 2004, the Interim Report on the Review of the Classification System of Advisory and Statutory Bodies in the Public Sector designated the Consumer Council as a “non-departmental public bodies”, i.e. non-commercial entities that deliver public services at arm's length from the Government.

The 1970s: The Establishment of the Consumer Council

In light of the high inflation rate due to the global oil crisis in the 1970s, there were significant discrepancies in the qualities of essential daily necessities. Therefore, the Consumer Council was founded to protect the consumer by monitoring the quality of products and services on the market.

1974	The Establishment of the Consumer Council The Consumer Council was established in April 1974. At the establishment of the Consumer Council, it broadcast the “Daily Bulletin of Retail Prices of Major Foodstuffs” every morning on the radio, offering information on price comparison to consumers.
1975	The Launch of Diversified Services The Consumer Monthly Newsletter, the forerunner of the CHOICE Magazine, was first published in 1975, with an initial print of 30,000 copies for free distribution. Apart from publications, the Consumer Council opened two Consumer Advice Centres in Wan Chai and Sham Shui Po District Offices.
1977	Status of the Consumer Council The Consumer Council Ordinance was enacted in 1977, and the council was formally incorporated into a statutory body, defining the council's functions and powers. The council has also become a member of the Consumers International, an organization for consumer groups around the world.
1977 - 1979	Public Education At the international level, after joining the IOCU, the Council co-organized the first Consumer Education Seminar with IOCU with the theme of “the Law and the Consumer”. The seminar has engaged delegates from over 20 countries and regions. At the local level, the Council collaborated with the Education Bureau to create a consumer education teaching kit that was widely adopted in school education. Moreover, it has organised a series of seminars with diverse topics to promote consumer rights.

The 1980s: Foundation for the Consumer Protection Legislations

In the 1980s, Hong Kong's economy was in the transition from secondary production to tertiary production. Meanwhile, there was increased consumer awareness of service quality. As a result, the Council handled numerous complaints. With this in mind, the council had proposed numerous suggestions for various consumer protection laws.

1981 - 1989

Implementation of Key Consumer Protection Legislations
The council has been advocating for the enactment of several consumer protection legislation. During this period, numerous consumer protection legislation such as the Trade Descriptions Ordinance and the Travel Agents Ordinance came into effect.
Trade Descriptions Ordinance was enacted on 1 April 1981, aiming to prohibit false trade descriptions or misleading information about goods and services provided by traders. As for Travel Agents Ordinance, it was enacted on 13 December 1985 with the aim to provide for the control and regulation of travel agents. However, due to the closure of major travel agencies between 1986 and 1987, the council's proposals for redress measures were accepted, and the Travel Agents Ordinance was amended accordingly. Further, the New Weights and Measures Ordinance was enacted on 1 January 1989 to provide units and standards of measurement and weighing equipment used for trade.

The 1990s: Foundation for Advocating Fair Competition in the Market and Enhanced Consumer Protection

With Hong Kong's rising status as the financial centre of Asia, the council had conducted various research on significant consumer and investor protection policies. As the Council plays an essential role in protecting consumer interests, the Council recognized that consumers might require assistance in pursuing their rights for consumer protection. Therefore, the Consumer Legal Action Fund was set up.

1991	Publicity Campaign The council launched an extensive publicity campaign to promote consumers' rights to the public with the slogan “Your consumer rights are in your hands. Speak up to fight for your rights!”. The advertisement with Dodo Cheng and Ng Man-tat had gained public recognition.
1994	The Consumer Legal Action Fund The Consumer Legal Action Fund was established in December 1994 with an initial grant of HK$10 million from the Government to facilitate consumer access to legal remedies through providing legal assistance to consumers. The council is the trustee of the Fund and is advised by a Management Committee on the merits of the cases seeking legal assistance under the Fund.
1997	Establishment of the Estate Agents Authority Followed by the council's recommendations on the licensing of estate agents to the Government, the Estate Agents Authority was established in November 1997 with the enactment of the Estate Agents Ordinance. Representatives of the council were appointed as members of the EAA's Committees and Working Groups.
1999	Co-organising the First Consumer Culture Study Award The Council started to co-organize the Consumer Culture Study Award with the Education Bureau in 1999. The award is designed for local secondary school students to explore consumer cultures, attitudes, and behaviours by generating study reports and collecting first-hand data.

The 2000s: Launch of Different Tools and Support

In the 2000s, Hong Kong was hit by SARS and a financial tsunami that had a massive impact on the economy. As a result, people became more concerned about the price of different products. The Council continued to provide information on product tests and launched different tools to assist consumers in their daily lives.

2008	Standardised Definition of Saleable Area The council and nine organisations jointly proposed the standardised method for measuring the saleable area in the 1980s. With the joint efforts, a standardised definition of “Saleable Area” took effect in October 2008 and was applicable to sales brochures and sales and purchase agreements. This helps potential buyers to gain more accurate information on the area of the property.
2009	Launch of the Auto-fuel Price Calculator In light of rising auto-fuel prices, the Council developed an online Auto-fuel Price Calculation in February, providing consumers with a platform to compare the auto-fuel prices of five local oil companies. Subsequently, in April, a mobile version of the Auto-fuel Price Calculator was launched.
2009	Launch of the Monthly Wet Market Food Price Index The council launched the Monthly Wet Market Food Price Index in September to monitor the price level of 26 food items in 44 wet markets across 18 districts. This laid a foundation for further development of the Online Price Watch.

The 2010s: The Council’s Focus in response to Technological Advancement

In the 2010s, online shopping became prevalent due to technological advancement. Therefore, consumers were more aware of sustainable consumption and personal data privacy. In response to the changing needs of consumers, the council also published information via diversified channels.

2010	The New Nutrition Labelling Scheme The new Nutrition Labelling Scheme came into effect on 1 July 2010, which helps consumers understand the nutritional content of food and make healthier food choices. The Council conducted surveys on the new Nutrition Labelling Scheme from March to July. Additionally, in collaboration with the Centre for Food Safety, the Council promoted the new scheme to the public.
2014	Celebrating the 40th Anniversary The Council celebrated its 40th anniversary with a series of events and educational programmes, such as the 40th Anniversary cocktail reception, where nearly 500 distinguished guests attended the event. Educational programmes, including a Comic Exhibition and an RTHK TV Programme, “Metropolitan Consumers”, were rolled out to discuss consumer protection issues in different generations.
2018	Launch of YouTube Channel The council has set up a YouTube channel where consumers can access information in different ways.
2019	Mainland Collaboration and Cross-border Co-operative Agreements with the Greater Bay Area Since there are frequent cross-boundary trades and consumer activities, the Council reached an agreement with the China Consumers’ Association to build closer partnerships especially in handling consumer complaints. To enhance the cross-border cooperation in consumer protection and rights between Guangdong, Hong Kong, and Macau, the Council signed Memoranda of Understanding with 9 Mainland municipalities. This facilitates cooperation in the Greater Bay Area by providing an operational framework and arrangements for information exchange.
2019	Consumer Education for Senior Citizens Community talks targeted at senior citizens were held with social service organisations to educate senior citizens about consumer rights. Moreover, the Council collaborated with TVB to produce elderly health management-related content in the TV programme “Revel in Retirement”.