We previously reported, in our September 2012 newsletter, the impending reform of Hong Kong’s trade descriptions legislation. The Trade Descriptions (Unfair Trade Practices) (Amendment) Ordinance 2012 ("the Ordinance") comes into force on 19 July 2013 and we now report on the legislation in its final form. We will restrict our comments to the “service” aspects of the new legislation, which the original Trade
Descriptions Ordinance did not cover. In addition to including services, other aspects of descriptions (such as those indicating price or availability) are now covered.
The revised Ordinance:
• Extends the prohibition on false trade descriptions to services as well as goods;
• Creates five new “unfair trade practices” offences;
• Strengthens enforcement mechanisms.
Trade Descriptions
It is now an offence for a trader to apply a false trade description to a service. Trade descriptions include
anything in respect of goods or services or any part of them and could include the price, how the price is
calculated, what is included (or excluded - see “Misleading omission”), the existence of any price advantage or discount, or claims that the service is "the best" or "the most popular".
