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INDUSTRY AND TRADE
which had come into operation a year earlier. The council took an active part in the review in an effort to secure a workable package that would resolve the issue of compensation and the long-term protection of consumers.
Another piece of legislation that came under review, following repeated complaints from consumers, is the Money Changers (Disclosure of Rates, Charges and Commissions) Ordinance.
The ordinance was the subject of a Working Party review in which the Consumer Council took part and which was published in November for public consultation, with a closing date of January 31, 1988.
The recommendations contained in the review include the requirement that money changers display, prominently and only, the net conversion rates (the amount the consumers will ultimately receive) of the currencies.
New legal protection is also expected in the light of the Report on the Control of Exemption Clauses by the Law Reform Commission, which recommended the control of liability exemption clauses in contracts or similar documents.
The council was vigorous in its efforts in cracking down on dishonest sales practices of retailers of household electrical appliances. Such practices have consistently been one of the main sources of consumer dissatisfaction, representing some 30 per cent of all complaints on goods and services. On three separate occasions, the council publicly named five electrical shops for adopting so-called 'bait-and-switch' tactics on consumers. This led to widespread publicity in the media, including a half-hour TV documentary investigating these malpractices. A 'refund guarantee' scheme, designed to tackle the problem at its root, was subsequently agreed upon by an association of the trade, and steps have been taken to put it into practice.
During the year, the council dealt with 8 770 complaints and 209 457 enquiries for advice. For the greater convenience of tourists who wish to lodge complaints, which represented 10 per cent of all complaints, plans are at hand to set up a new Consumer Advice Centre in the heart of the tourist district of Tsim Sha Tsui in Kowloon, bringing the total number of such centres throughout Hong Kong to 16.
A delegation of the Consumer Council attended the 12th World Congress of the International Organisation of Consumers Unions (IOCU) in September. The Hong Kong Consumer Council was re-elected as a member of the IOCU, together with 12 other country organisations. The Hong Kong Consumer Council maintains strong ties with similar councils elsewhere, including China.
Trade in Endangered Species
The possession, importation and exportation of endangered species of animals and plants, including parts and derivatives, into and out of Hong Kong is strictly regulated by the Animals and Plants (Protection of Endangered Species) Ordinance which gives effect to the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES). While the licensing policy allows legitimate trade in scheduled specimens, import licences may not be granted in certain cases to help the survival of a species. Hong Kong maintains its place as an important centre for legitimate trade in African ivory.
The ordinance is administered by the Agriculture and Fisheries Department and is enforced by officers of the department and the Customs and Excise Department. The Trade Department is authorised to issue certificates for ivoryware carved in Hong Kong. Illegal trade is investigated and prosecutions follow if there is evidence of a breach of the ordinance. During 1987, there were 420 seizures and 390 prosecutions under the ordinance.