With the government considering new legislation – including possible criminal sanctions – to protect the public from nuisance calls, telemarketing companies need to be more observant than ever about staying compliant with the law, says Boase Cohen & Collins solicitor Catherine Lau.
Hong Kong, 6 June 2017: A family emergency that received considerable coverage in the media recently also served to highlight Hong Kong’s long-standing problem of cold calls from telemarketers. It was reported how a woman ignored 17 calls from hospital staff trying to obtain permission to proceed with surgery on her husband after he was injured in a car accident as she had assumed they were simply nuisance calls.
With the government facing increasing pressure to act, the Commerce and Economic Development Bureau has now proposed three solutions for unwanted phone calls from marketers selling goods and services. The first of these is for telemarketing firms to improve self-regulation; the second is the promotion of call-filtering apps for smartphones; and, finally, there is the option to establish a statutory “do not call” register.
The proposals are undergoing public consultation until 31 July. If passed into law, the implications for marketers of businesses may be significant for they could face criminal sanctions. However, any new legislation may not be so effective in curbing calls from overseas due to difficulties in collecting evidence.
Currently, the Unsolicited Electronic Messages Ordinance (Cap. 593) and an existing “do not call” register are the laws and regulations against unsolicited messages and calls. The Ordinance has been effective in stopping unsolicited electronic messages but the “do not call” register is less successful as it covers only electronic messages, including voice recording, while person-to-person calls are exempted.
While expanding the “do not call” register is a possible solution, there is also the suggestion of establishing a “white list” for numbers from hospitals and other legitimate sources so people can recognise these numbers and will not miss emergency calls, as happened in the incident described above.
The value of unsolicited messages and calls for marketers has always been in doubt. However, the practice remains a significant source of employment – it is estimated there are 7,000 people in Hong Kong who depend on telemarketing for their livelihoods.
What is clear is that companies who include telemarketing in their sales strategies need to review their policies to ensure that not only are they complying with the law, they are also promoting corporate governance and a positive image.
On the question of using personal data, Hong Kong has legislation in the shape of the Personal Data (Privacy) Ordinance. As well, there are codes of practice and guidelines issued by the Office of the Privacy Commissioner for Personal Data.
At Boase Cohen & Collins we advise a wide range of private sector companies and always urge them to show extreme caution in their collection and use of personal data. Those companies involved in direct marketing – in other words, cold calling – are particularly at risk of falling foul of the law. With possible new legislation in the pipeline, the need for companies to remain vigilant and compliant becomes even more pressing.