Parliament has just adopted the legislation amending the Consumer Affairs Act (Cap. 378) transposing an EU Directive concerning unfair business-to-consumer commercial practices (2005/29/EC).

The new amendments place a general duty on all businesses not to trade unfairly with consumers. In particular, it will oblige businesses not to mislead consumers through acts or omissions; or subject them to aggressive commercial practices such as high pressure selling techniques. These amendments mark a big step forward for consumers. They boost the protection consumers enjoy, while simplifying the regulatory environment for businesses.

The amendments describe two major categories of unfair commercial practices; those which are misleading and those which are aggressive. Aggressive commercial practices are defined as practices involving harassment, coercion or undue influence that impair the freedom of choice and affect purchasing decisions. A schedule specifically sets out a list of “commercial practices” which are in all circumstances considered unfair.

Furthermore, the amendments define a limited range of practices which are prohibited, such as pressure selling, misleading marketing amongst others. It also lays down general principles which can be used to assess whether other types of practices should be prohibited as unfair. This legislation does not apply to dealings between businesses.

Should consumers or traders require further details on these amendments, they may phone the Consumer and Competition Division on 8007-4400 or the European Consumer Centre on 2122-1901/3.