A1.

There are legislative provisions under different ordinances in Hong Kong, China which prevent or prohibit anti-competitive behavior. There are also non-statutory regulations for regulating competition. In the case of some franchised companies, licensing conditions are introduced to ensure free competition in the industry. Examples of these legislative provisions/ regulations/ licensing conditions include - Legislative Provisions (made under) (i) Trade Descriptions Ordinance (ii) Control of Exemption Clauses Ordinance (iii) Unconscionable Contracts Ordinance Rules/Regulations (iv) Stores Regulations made under Public Finance Ordinance Licensing Conditions (for licences in) (v) broadcasting (vi) telecommunications

Q2.	PRINCIPAL AGENCIES What are the respective roles of the principal agencies involved in enforcement of the law?

A2.

The promotion of competition is a fundamental government policy objective. Hence, all policy bureaux and executive departments are responsible for complying with this for areas of work falling within their purview. In addition, the Customs and Excise Department is also charged with the responsibility for taking criminal enforcement actions under the Trade Descriptions Ordinance. We have also established the Consumer Council to help collect, receive and disseminate information relating to unfair trade practices and to receive and examine consumer complaints in this area.

Q3.

GENERAL PROHIBITIONS (i.r.o. anti-competitive behaviour) Most competition statutes have general prohibitions against anti-competitive behaviour (e.g. "Combinations in restraint of trade", "Agreements to substantially lessen competition"). Are there any general prohibitions in your competition law? And what are they?

A3.

Hong Kong, China does not have a general competition law. However, we adopt a sector-specific approach to encourage competition and regulate anti-competitive behaviours. For example, both the Telecommunications Ordinance and the Broadcasting Ordinance have express legislative provisions that prohibit anti-competitive behaviours.

Q9.	DECEPTIVE OR MISLEADING REPRESENTATIONS Does your competition law contain any provisions prohibiting advertising which is deceptive or misleading, or other misleading representations? Please specify the law and the provision of that law. And what is the provision?

A9.	The Trade Descriptions Ordinance prohibits the application of a false trade description or trade mark to any goods; the supplying, importing, exporting and advertising of goods with such false trade descriptions and trade marks; and the making of false representations.

Q10.

UNFAIR USE OF BARGAINING POSITION (unconscionable conduct) Does your competition law contain any provisions prohibiting firms from making unfair use of their bargaining position? Please specify the law and the provision of that law. How do you define "unfair use of their bargaining position"? What firms does the provision apply to? And which customer does the provision apply to?

A10.

The Control of Exemption Clauses Ordinance limits the extent to which suppliers of goods and services can limit or evade their liabilities towards customers by means of exemption clauses in contract terms or notices. The court or arbitrator shall have regard to the "reasonableness" of such contract terms. One of the judicial guidelines specified on the Ordinance to determine whether an exemption clause is unreasonable is the relative bargaining power of the contracting parties. The Unconscionable Contracts Ordinance empowers the courts to give relief in contracts found to be unconscionable. The courts will consider the relative strengths of the bargaining positions of the contracting parties when determining whether a contract is unconscionable.

Q30A   &B.

MAXIMUM FINE CHARGEABLE FOR OFFENCES AGAINST COMPETITION & CRIMINAL PENALTIES What is the maximum fine chargeable for the various offences against your competition law? Are any other criminal penalties, including imprisonment, available for offenses against the competition law? Please specify the law and the provision of that law. And what are those penalties?

A30A    &B.

Individuals committing an offence against the Trade Descriptions Ordinance can be liable to a maximum fine of HK$500,000 and imprisonment for 5 years.

Q31A    &B

PRIVATE PARTY ACTION AND DAMAGES OR REMEDIES TO PRIVATE PARTIES Do private parties have the right to take action against prohibited activities in the absence of action by the enforcement agency? What damages and remedies are available to private parties?