Purpose
Union Medical Healthcare Limited is one of essential aesthetic service provider in the medical industry in Hong Kong. The company has been ranked as number one in contour shaping kind of treatments that involves proper utilization of the six generation of the revenues medications for aesthetics in Hong Kong. The company has different doctors who are working in the company on a full time basis and they are the top players in the entire market in the aesthetic medical service in Hong Kong. Proper focus has been given on the high standard of safety along with satisfaction of the clients as well as professionalism is essential in nature as this will help them in making it a well established institution. Different marketing strategies along with innovative strategies is essential in nature as this will help in building a proper recognized kind of brand in Hong Kong. Dr Reborn, that is the top brand in Hong Kong in the year 2016 that has a proper reputation of being a best provider of the different medical services in Hong Kong. According to the consumers’ survey conducted by Frost & Sullivan in the month of May in the year 2015 in Hong Kong itself helped in analyzing about the different preferences of brand. DR REBORN has been ranked first in the preferences of the brand among different consumers while choosing the medical service centers relating to aesthetics.
To: Members of Board of Directors
Proposal of proper enhancement in the content of social, environmental as well as governance (SEG) Reporting
Purpose
As the requirements of SEG have been properly set out in listing rules has been properly launched and this became effective in the financial year2016. The first report has properly prepared with explain or comply approach in the alignment with different requirements of reporting. It was also noted that the disclosure that has been reported KPIs disclosure in the aspect of environment has been upgraded properly to explain or comply from FY that is beginning from or after 1st January 2017 for helping in providing more information relating to financial status.
It has been expected that the requirements of SEG in Hong Kong will upgrade and this will help in upgrading to disclosure of comply or explain in different aspects. There are different suggestions on enhancing the different disclosure on policies in responsibility of product as well as compliance with relevant regulations as well as laws as well as explain with risk exposure of the company. Secondly, it is to properly develop recommended disclosure in proper prevention of different consumer data privacy as well as protection measures as well. Thirdly, a proper draft outline of different code of practice which the organization can properly implement to different guidelines for employees.
Product Responsibility Policies as well as compliances with different laws as well as regulations along with explanation of risk exposure of company
Product Responsibility Policies as well as compliances with different laws as well as regulations along with explanation of risk exposure of company
The entire section is to properly guide provision under requirements of SEG that will help in developing comprehensive disclosure
Policies
With proper reference to the company for proper cooperation and development in economics helped in produced report on protection of consumers in E commerce in the year 2016 in March. This helps in providing definitive description of different practices in provision of information that will enable consumers in order to purchase confidentiality online. These are the different practices on and this goes beyond mandatory information provisions that have been described. The entire council would see businesses of Hong Kong voluntarily adopt different recommendations that have been prepared by The Organization for Economic Co-operation and Development. There are practices that the business has to adopt properly such as:
Comparison of fair price
Proper statement about policies of online business
Proper handling of the data of consumers
Summarizing conditions as well as making T&Cs that are complex in nature easy to properly navigate
Different payment options
Accountability that is confused in nature
For example: The UK department for the business, regulatory as well as enterprise that is designed in order to provide guidance on protection of consumers from unfair trade practices: OFT979 in order to properly protect different consumers as well as businesses. There are different detailed rules as well as regulations around descriptions of trade as well as price that is misleading in nature are replaced with ban on unfair trading. This helps in understanding traders will act in way that will enable average consumers to make informed as well as free decisions relating to purchase. Furthermore, this will put stop to different aggressive techniques of selling and misleading individuals about services and products.
Compliance to regulations and laws
In order to enhance consumers’ protection, the Trade Descriptions Ordinance 2012 was properly enacted in July 2012. It helps in amendment of descriptions of trade Ordinance (Chapter 362) (the ordinance) by proper introduction of new prohibitions as well as mechanism of enforcement as to properly understand trade practices of traders that deploy against different consumers. The ordinance that is amended has come into operation in the month of July 03 in the year 2013. The different outcomes of excise department are agency to enforce such ordinance.
1) Trade kind of descriptions of different services
Compliance to regulations and laws
The section 7A helps in providing that it is offence for trader to apply description of trade that is false in nature to the service supplied to the consumers or offer services to consumers wherein false description is applied and this is applied to business to consumers conduct. The section does not apply to the services supplied or offered to provide by exempt person and this excludes different services that is covered under schedule 4 to Ordinance.
2) Insistent commercial practices
Section 13F of Ordinance prohibits commercial practices that are aggressive by traders. A commercial practice is aggressive if it significantly impairs average freedom of consumers of choice in relation to different goods and services through use of harassment as well as undue influence. Therefore, it is likely to cause consumer to transactional decision wherein the consumer would not made otherwise. Secondly, usage of abusive or threatening language along with timings, nature as well as location is determined. The trader has to be aware about gravity in order to impair judgment of consumers to influence the decisions of consumers. Lastly, the threat to take any kind of action that is illegal in nature has to be determined as well.
3) Payment wrongly accepted
Section 131 of Ordinance prohibits commercial kind of practice by the traders that will constitute wrong acceptable payment method. A trader who accepts goods wrongly wherein the trader himself accepts the payment or other kind of considerations as well for goods and services at time of acceptance:
- Trader intends not supply different goods and services
- Trader intends supply goods as well as services wherein it is materially different
- There is no grounds for trusting trader will able to supply goods as well as services within such period specified by trader
- The traders cannot accept pre payments from different consumers at time of acceptance when they are uncertain about goods as well as services that will be delivered to the consumers within reasonable time
Risk exposure of company and prevention methods
Case Study: False Trade descriptions of services
Miss Wong properly read advertisement of beauty centre wherein it claimed the treatment of laser fleck removal would be carried by registered practitioners in Hong Kong. She made proper enquiry to beauty centre was assured by staff members verbally wherein information on advertisement was genuine. On the other hand, her face was red as well as swollen after the treatment. She returned to the centre and lodged complaint. Furthermore, she realized medical practitioners carried out treatment for her has been disqualified from handling treatment beforehand.
In this case, claim of laser fleck removal carried out by registered practitioners on advertisement and statement that is provided by staff members of beauty centre might be contravened different provisions on false descriptions of trade that will come into operations soon.
Commercial practice of aggressive nature
The factors that need to be considered for the determination of level of aggressiveness of the commercial practices with relation to the use of harassment, undue influence and coercion or the timing, nature, location or persistence. The usage of abusive language or threatening related behavior or the manipulation by traders of specific circumstance or misfortune about which the trader is conscious. The awareness of the trader is related to the gravity to impair the judgment of the consumers or regarding the influence on the decision of the consumers. Any type of barrier that is imposed by the trader which is burdensome and non-contractual in nature regarding the ways by which the consumers exercise their rights that is within the contract which includes the rights by which they can terminate the contract or they can switch to any other product or any other trader and any threat related no taking any legal action.
Trade kind of descriptions of different services
The above mentioned factors are not necessary regarding the aggressiveness of the commercial practices. The court can further consider any other factor that is deemed to be fit. The traders are stopped from the promotion of the goods and services after the explicit rejection of the consumers.
Case Study related to the Commercial Practices of Sales Promotion which is aggressive
A trial offer that was mentioned in the promotional leaflet of the organization attracted Miss Ng who then decided to join the scheme offered as trial in the centre of fitness and the payment was made by her through credit card. She was then trapped inside a room after few days when she visited the fitness centre so that she could use the facilities. There were two staff members inside the room who were promoting their schemes of membership and other courses related to fitness. This left Miss Ng in full confusion and was also stopped from leaving the room as well. She ultimately decided to subscribe for the membership under extreme pressure exerted by the two members of staff. The total amount of fees that was charged from her after the completion of the transactions was around $70,000. They realized that it was not possible for her to complete all the different courses that were purchased by her within the stipulated time period.
The judgment of Miss Ng was therefore impaired in the process with the use of different techniques like coercion, fatigue bombing and the process of prohibition that was caused by the staff and this led to the decision taken by Miss Ng to ultimately make the payment. The staff members’ behavior may have created practices related to aggressive commercial under the Trade Descriptions Ordinance which was amended and will be in operation soon.
Commercial Practices of aggressive nature
Case A7 (Court case number: KCCC3903/2014)
Case particulars:
A consumer of a particular beauty parlor was communicated by three members of staff regarding the examination of her chest and that lumps were present which could result in breast cancer and insisted her on purchasing a package of body treatment costing $140,000. In spite of the reluctance expressed by the consumer regarding this, they continued with persuasion for more than one and a half hours, which caused substantial anxiety and irritation to the consumer. The customer finally gave in to the pressure and conducted the transaction reluctantly.
All the three members of staff of the salon were sentenced for engaging in an aggressive commercial practice where one of them received an order of community of 200 hours and the other two were sentenced to imprisonment of three months.
Insistent commercial practices
Wrongly Accepting Payment
Consumers commonly make pre-payments during the purchase of services or goods that are delivered later. Some of the traders offer discounts related to pre-payments in order to boost the business especially in the cases of bulk purchases. The traders are therefore advised not to accept the pre-payments from customers in case of uncertainty regarding the delivery of the relevant goods or services within the stipulated time or within a reasonable amount time if no time is stipulated.
Case Study for This Week: Accepting Payment from Consumers in a wrong way
Miss Lee came to know regarding a trade fair that was being organized by a chain yoga centre of large-scale and visited there to collect more information. She was convinced by a member of staff of the centre at the venue to subscribe to a membership of 30 months and was informed regarding the fact that she could attend limitless classes within the period of membership and also enjoy 3-month extra membership for free. She then procured a membership of 30 months for $20,000 and the full payment was settled by credit card. Miss Lee attempted to book a lesson the next day but was then informed that all the classes in the next 6 months were totally booked. It also be said that she needed to wait for minimum 6 months prior to attending the primary lesson.
The fitness centre had committed a crime by accepting payments in a wrong way under the Trade Descriptions Ordinance (TDO) that has been amended newly and will be in operation within a short period, as during time of payment acceptance, all the classes in the next 6 months were booked already, and the course that is available only after six months may not be measured as available within a sensible time.
It could be stated in the SEG report prepared by us that the relevant policies have been established which are effective in execution and also fit the standards that are set internationally at the time of adoption of the above mentioned content. Additionally, by introducing the background of the Ordinance to our manual and by providing the training or conference to our representative that is relevant so that we can comply with the laws and regulations.
(II)Recommended KPIs – Data protection of consumers and privacy procedures
The content is presently under the KPIs that are recommended in the social aspect; however, it is thought that the upgrade in the future will be there so as to follow the pace related to the trends globally. Adoption in the early stage lets us to have a background which could be overseen by the application and also tune in to a perfect track prior to the enhancement actually. The disclosure that is recommended needs to be developed required for the measures of prevention and the data protection of consumers and procedures related to privacy.
Data protection of consumers and privacy policies
By referring to the guidance, the Information Commissioner’s office of UK government the UK’s independent authority set up ‘Data protection principles ‘to uphold information rights in the public interest, promoting openness by public bodies and data privacy for individuals Defined ‘Data protection rules’ within the official website of government.
It should be made sure that the information is securely kept, precise and up to date.
For example, while collecting personal data of someone you must tell them:
Who you are
How you’ll use their personal information
The information can be seen by them and also corrected, if it is incorrect
It can also be said that in case of usage of the information in other ways, like passing to other organizations.
The law of Data protection in Hong Kong is therefore enforced by The Office of the Privacy Commissioner for Personal Data, which is a statutory body that is independent and is set up in order to oversee the enforcement of the Personal Data (Privacy) Ordinance (Cap. 486) which came into force on 20th December, 1996. To the protection of privacy of individuals with respect to personal data through promotion, monitoring and supervision of compliance with the Ordinance is also secured.
(III) A draft outline of the “code of practice”
All employees need to follow the Code of Practice which includes:
- Promoting awareness that is positive regarding the professional beauty industry and also encourages the level of integrity that is the highest.
- Providing professional services of high quality to the consumers.
- Maintaining the truthfulness of materials produced, sold or used in the facility of professional beauty services.
- Ensuring that all the sales promotions and advertising are factually accurate and truthful.
- Upholding the contractual agreements that are lawful and commitments, by providing attention to the agreements affecting distributional management of product.
- Keeping all the licensing and registrations up to date.
- Keeping insurance up to date.
- Following guidelines related to safety and sanitation.
In conclusion, the Company would be more competitive if everyone had taken part in responsibility related to products of different kinds. The company must continue to upgrade global trend with compliance of the pertinent laws and regulations. On the other hand, the company should ensure that procedures are implemented and monitored.
References
‘Data protection rules’
‘Describing your product’
‘Regulations that affect advertising to consumers’
https://umhgp.com/en/aboutus
https://www.info.gov.hk/gia/general/201204/25/P201204250358.htm
https://ico.org.uk/for-organisations/guide-to-data-protection/data-protection-principles/
https://www.gov.uk/data-protection-your-business
https://www.gov.uk/marketing-advertising-law
https://www.gov.uk/marketing-advertising-law/describing-your-product
https://www.gov.uk/marketing-advertising-law/regulations-that-affect-advertising
https://www.pcpd.org.hk/english/about_pcpd/our_role/what_we_do.html
Marketing and advertising: the law
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