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Laws required to rein in HK's cheating merchants
By Hong Liang (China Daily)

The Hong Kong government is getting serious about clamping down on dishonest merchants preying on tourists particularly those from the mainland.

New laws are being drafted to punish those who are seen to have done immeasurable damage to Hong Kong's reputation as a shopping paradise for tourists from around the region.

The proposed fair trade laws have understandably raised concern among members of the business community, which is steeped in the tradition of free enterprise. Some businesspeople, particularly those from the retail sector, have expressed worries that such laws could open the floodgate to frivolous litigations that can be costly and time consuming.

These concerns are not groundless. But it is important to bear in mind that the proposed laws are part of Hong Kong's relentless efforts to establish itself as a world-class city where the rights and interests of those people who come to make or spend money are adequately protected.

Since the establishment of the Independent Commission Against Corruption better known as the ICAC in the mid 1970s, Hong Kong has won international recognition for adhering to zero-tolerance for corruption, which was a major curse to society.

Great efforts have been made to reform the stock market, mainly to improve transparency. The process was fraught with controversies when vested interests were seen as being threatened.

But the investment community has come to realize that a well-regulated stock market is absolutely necessary to attract foreign institutional funds. These funds are essential to maintaining Hong Kong's position as a premier source of capital to help finance economic development on the mainland.

Hong Kong has taken effective measures in cracking down on the manufacture and sale of pirated merchandise. As a result of its efforts in the protection of intellectual rights, more and more multinational technology companies are conducting product research and development work there.

Meanwhile, the Hong Kong government has proposed the introduction of anti-monopoly laws to ensure market transparency and a level playing field for all businesses.

There have been suggestions to limit the law to selected sectors that are seen to have the most direct impact on people's daily life. But public sentiment seems to prefer more comprehensive law covering all economic sectors.

Consumer protection has never been high on Hong Kong's legislative agenda. There have always been wise guys trying to make a quick buck from unwary buyers. Tourists are easy targets for these conmen in Hong Kong, as in any other city.

The Consumer Council, despite its commendable efforts to educate consumers and, in some instances, expose dishonest merchants, has remained a toothless tiger. The Tourist Board can do little more than issue warnings to incoming tourists, telling them they should be careful about where they shop.

Our tolerance for these unsavory vendors has created bad publicity for Hong Kong. It is pointless to lay the blame on mainland tourist agencies for organizing scam shopping trips. We must first put our own house in order by driving the sham merchants off our city streets with tough laws that are vigorously enforced.

E-mail: jamesleung@chinadaily.com.cn

(China Daily 05/08/2007 page10)