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LCQ1: Person-to-person telemarketing calls
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     Following is a question by the Hon Samson Tam and a reply by the Acting Secretary for Commerce and Economic Development, Mr Gregory So, in the Legislative Council today (June 24):

Question:

     Under the Unsolicited Electronic Messages Ordinance which came into operation in late 2007, members of the public may choose not to receive commercial electronic messages such as pre-recorded messages. Yet, person-to-person telemarketing calls are not regulated by the Ordinance. In this connection, will the Government inform this Council:

(a) of the number of complaints received in each of the past three years by the authorities about person-to-person telemarketing calls, broken down by business nature and type; how they followed up the complaints and the outcome;

(b) whether the authorities will reconsider introducing legislation to regulate person-to-person telemarketing calls; if they will, of the details and the implementation timetable; if they will not, the reasons for that; and

(c) regarding the aforesaid problem, whether the authorities have made reference to and studied the relevant experience of foreign countries, so as to protect the public from the nuisance caused by such telemarketing calls; if they have, of the details; if not, the reasons for that, and whether they will conduct the studies concerned in the future?

Reply:

President,

     Before answering the question, I would like to give a brief account of the background and latest progress of the implementation of the Unsolicited Electronic Messages Ordinance (UEMO).

     The UEMO, which fully commenced operation on December 22, 2007, regulates the sending of commercial electronic messages, including pre-recorded messages sent to telephones, messages through short messaging services, faxes and emails. At present, the UEMO does not cover person-to-person telemarketing calls mainly because most business establishments in Hong Kong are small and medium enterprises (SMEs), which rely on this mode of communication as a means of marketing. As such, in drawing up the UEMO, after balancing different views, the Government excluded such calls from the ambit of the Ordinance to avoid affecting the development of legitimate electronic marketing in Hong Kong.

     However, the Government has been closely monitoring the situation of person-to-person telemarketing calls. To gauge the impact of such calls on the public and assess the views of the public and the industry, the Office of the Telecommunications Authority (OFTA) has commissioned a public opinion survey and collected views from the industry. The Government is now analysing the views collected and intends to release the results of the two surveys together with the Government's views on what, if any, further action may be required in respect of person-to-person calls after summer.

     Separately, the Personal Data (Privacy) Ordinance (PDPO) contains provisions concerning the use of personal data in direct marketing.  According to the PDPO, a data user who uses personal data for direct marketing purposes has to cease using that data if the person who is the subject of the data so requests.

     My reply to the member's question is as follows:

(a) From the full implementation of the UEMO in December 2007 to May 2009, the OFTA handled a total of 9,158 complaints, of which 128 were related to person-to-person calls. Among these 128 cases, 94 involved commercial marketing activities and 9 were opinion survey calls. For the remaining 25 cases, the complainants did not provide information on the contents of the calls.

     As person-to-person telemarketing calls are currently not regulated by the UEMO, the OFTA does not have the authority to investigate complaint cases relating to such calls.  If the use of the complainant's personal data for direct marketing purposes is involved, the complainant can request the caller to cease to use such data for direct marketing purposes under the PDPO. If a call involves fraud or nuisance, the OFTA would advise the complainant to report the case to the Police.

(b) To gauge the impact of person-to-person telemarketing calls on the public and to assess the views of the public and the industry, the OFTA has commissioned a public opinion survey and has collected views from the industry. The Government is now carefully considering the views of the public and the industry. We intend to release the results of the two surveys together with the Government's views on what, if any, further action may be required in respect of person-to-person calls. The Government will look at various factors, including the right of the public to receive information and not to be disturbed, the scope for enterprises to conduct legitimate electronic marketing activities in Hong Kong and the importance of such activities to SMEs etc.

(c) OFTA has studied overseas practices in regulating person-to-person telemarketing calls. In Australia, the US, the UK and Canada, for instance, laws have been passed and registers established for citizens to choose not to receive person-to-person telemarketing calls. The coverage of each register varies from place to place.  For example, in Australia, the US and Canada, the register does not cover business telephone numbers. Under the US and Canadian legislation, a company may still call a telephone number which has already been listed in the do-not-call register for person-to-person telemarketing calls if the user of the telephone number has a business relationship with the company or has given prior consent.

     Apart from overseas experience, the Government will also take into account Hong Kong's existing legislation and economic situation in deciding whether or not there is a need to take further steps in respect of person-to-person telemarketing calls. We will continue to discuss the matter with the industry and monitor the situation of such calls. After collecting and analysing the views of the public and the industry, the Government will make a decision only after carefully considering the way forward, with a view to protecting the interest of the whole community.

Ends/Wednesday, June 24, 2009
Issued at HKT 12:48

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