At times, telecommunications service providers may unilaterally vary terms and conditions in the contracts with their customers, provided such variation is allowed in the contracts.

Under the Industry Code of Practice for Telecommunications Service Contracts ("Industry Code"), consumers will be better protected. In summary,

  1. Service providers are required to specify clearly in the service contracts those terms and conditions which can be changed unilaterally by the service provider.
  2. If there is material change of contract terms relating to price and service quality, service providers must give not less than 30 days' prior notice to the affected customers before effecting the change.
  3. Customers will be permitted to terminate the contract without incurring any charges (except incidental charges) by giving no more than 15 days' advance notice, in the event that –
    1. there is any increase in the contract service charges;
    2. there is an increase in other administrative charges or other charges which is more than HK$30 or 30% of the amount of the monthly contract service charges; or
    3. the customer can demonstrate that the change to the contract terms will substantially and adversely affect the service he/she has acquired (e.g. connection speed restriction after a certain usage threshold is exceeded)

You should ask the service providers how their service contracts comply with the above requirements. You should also make reference to the Industry Code, wherever necessary, so as to understand better the enhanced protection you can enjoy. Please refer to paragraph 9 of the Industry Code.

Remark

The Industry Code is a voluntary scheme of the industry and has been implemented by all major fixed and mobile network operators. Consumers should note that the Industry Code only applies to (a) new telecommunications service contracts provided by the participating service providers starting from July 2011; and (b) personal or residential users. Moreover, some of the protections offered by the Industry Code do not apply under certain conditions. Consumers should seek clarifications from service providers when in doubt, or where necessary, refer to the relevant parts of the Industry Code.

Please visit this page for the full text of the Industry Code and the list of service providers who have adopted it.

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