Key Revisions in Hong Kong’s Telemarketing Code
The Hong Kong Monetary Authority (HKMA) recently announced enhancements to the Code of Practice on Person-to-Person Marketing Calls to bolster consumer protection and regulate telemarketing practices. The updated code, developed by the Hong Kong Association of Banks (HKAB) and the DTC Association (DTCA), introduces significant alterations for the conduct of telemarketing activities by Authorized Institutions (AIs).
Restrictions on Marketing Calls
One of the most significant changes is the restriction on the frequency of marketing calls, which now limits AIs to making a maximum of three calls to the same telephone number within a single calendar week. This restriction aims to enhance the telemarketing experience for consumers and reduce potential nuisances.
- Telemarketing calls are only permitted between 9:00 am and 10:00 pm.
- Callers must clearly identify themselves and state the purpose of the call to the recipient.
- AIs must establish mechanisms to handle unsubscribe requests from recipients.
- There are controls over the collection of information from called parties and arrangements for any subsequent meetings.
- A structured complaint-handling mechanism related to telemarketing activities is mandatory.
Implementation and Effectiveness
The HKMA expects all AIs to promptly adhere to these guidelines based on the implementation timeline outlined in the code. The revised code took effect immediately starting June 21, 2024.
Impact of the Changes
These revisions address escalating concerns about consumer privacy and the intrusive nature of telemarketing tactics. By regulating call frequencies and imposing stricter rules, the HKMA aims to establish a more respectful and transparent telemarketing landscape.
Moreover, these enhancements align with global trends wherein regulatory agencies increasingly prioritize consumer protection within financial services. The proactive stance taken by the HKMA could potentially serve as a benchmark for other jurisdictions seeking to balance marketing practices with consumer rights.
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