XN000022-1986-09-26 — Page 2

1

FRIDAY, SEPTEMBER 26, 1986

STEPS BEING TAKEN TO CURB INERTIA SELLING'

*****

ME GOVERNMENT IS PROPOSING AMENDMENTS TO THE POST OFFICE ORDINANCE TO CURB INERTIA SELLING AND MAINTAIN THE COMPETITIVENESS OF THE POST OFF ICE.

THE PROPOSALS WERE PUBLISHED IN THE GAZETTE TODAY (FRIDAY) UNDER THE POST OFFICE (AMENDMENT) BILL 1986,

A PROPOSED AMENDMENT WILL MAKE IT AN OFFENCE TO POST ANY BILL, INVOICE OR STATEMENT OF ACCOUNT DUE FOR UNSOLICITED GOODS OR SERVICES UNLESS THE DOCUMENT HAS A CLEAR NOTICE IN ENGLISH AND CHINESE THAT IT IS NOT A BILL AND NEED NOT BE PAID. IT IS ALSO PROPOSED THAT THE MAXIMUM PENALTY SHOULD BE $100 000 AND THREE YEARS' IMPRISONMENT.

A GOVERNMENT SPOKESMAN SAID THE PROPOSALS WERE THOUGHT NECESSARY BECAUSE OF THE SUBSTANTIAL NUMBER OF COMPLAINTS FROM BOTH LOCAL AND OVERSEAS COMPANIES REGARDING UNSOLICITED ENTRIES IN TRADE DIRECTOR IES – COMMONLY KNOWN AS INERTIA SELLING'.

THE COMPLAINANT COMPANY USUALLY RECEIVES A DOCUMENT HE ADED 'INVOICE', 'DEBIT NOTE' OR 'STATEMENT WHICH GIVES THE IMPRESSION THAT IT OWES MONEY TO A DIRECTORY PUBLISHING COMPANY FOR THE

INSERTION OF ITS NAME IN A TRADE DIRECTORY.

BUT, ON CLOSER EXAMINATION, THE INVOICE CONTAINS SMALL PRINT TO THE EFFECT THAT IT IS ONLY UPON PAYMENT BEING MADE THAT THE ENTRY WILL BE INCLUDED IN THE NEXT ISSUE OF THE DIRECTORY.

HOWEVER, ACCOUNT CLERKS ARE OFTEN DECEIVED INTO THINKING THAT THIS IS A SMALL DEBT OWED BY THE IR COMPANY AND, AS A MATTER ROUTINE, MAKE THE PAYMENT REQUESTED.

IN ADDITION TO THIS DECEPTION, THE DIRECTORIES ARE SOMETIMES NOT PRINTED OR, IF PRINTED, THEY ARE OF NO COMMERCIAL VALUE.

THE SPOKESMAN ADDED THAT IT WAS HOPED THAT THE AMENDMENT WOULD CURTAIL THE AMOUNT OF INERTIA SELLING EMANATING FROM HONG KONG AND THUS PRESERVE HONG KONG'S IMAGE AS A BONA FIDE CENTRE OF COMMERCE.

ANOTHER PROPOSED AMENDMENT TO THE ORDINANCE WILL ENABLE THE POSTMASTER GENERAL TO PROVIDE CREDIT FACILITIES TO REGULAR USERS OF THE 'SPEEDPOST' SERVICE AND TO BULK PARCEL CUSTOMERS.

AT PRESENT, REGULAR CUSTOMERS OF THE 'SPEEDPOST' SERVICE ARE REQUIRED TO MAINTAIN A STANDING DEPOSIT WITH THE POST OFFICE TO COVER THE POSTAGE ON ITEMS COLLECTED FROM THEIR PREMISES.

ALSO, FOLLOWING THE RECENT DISCOVERY OF ABUSES OF FRANK ING MACHINES, THE POSTMASTER GENERAL INTENDS TO STOP THE USE OF THIS FACILITY FOR THE POSTING OF PARCELS,

THE AVAILABILITY