Under the Industry Code of Practice for Telecommunications Service Contracts ("Industry Code"), telecommunications service contracts for personal or residential users must –

  1. be written in plain language;
  2. appear in legible print;
  3. use font size of at least 9 point for body text, footnotes and remarks; and
  4. be bilingual in Chinese and English, or in either Chinese or English as the customer elects, with both language versions carrying equal legal effect.

The Industry Code has set out a list of information that should be included in the principal document and displayed prominently, including but not limited to the following items –

  1. Service elements and charges;
  2. Arrangement for contract renewal and termination;
  3. Arrangement for unilateral variation of contract terms by service providers;
  4. Arrangement for service relocation (if applicable) and any applicable termination charge should be calculated by a specified formula or subject to a specific maximum amount, which should be communicated to the customer before signing of the contract; and
  5. Arrangement for cooling-off period (if applicable).

Where the target commencement date of a contract with a fixed term is not the same as the first bill cycle date, the Industry Code requires that the contract must clearly state –

  1. the first bill cycle date (or should be communicated to the customer as soon as practicable); and
  2. the calculation of the first and last monthly fees within the contract with a fixed term.

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 paragraphs 3 and 6 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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