The Hong Kong Monetary Authority (HKMA) has announced that it has strengthened its code of practice for peer-to-peer marketing calls to improve consumer protection and telemarketing practices. The revised regulations issued by the Hong Kong Association of Banks (HKAB) and the DTC Association (DTCA) bring significant changes to the way authorized entities (AIs) conduct telemarketing activities.
Major revisions to the code
Among the most notable updates are limits on the frequency of marketing calls. The new code now stipulates that AI will be limited to calling the same phone number no more than three times in a week. This bill is intended to improve the telemarketing experience and reduce potential inconvenience to the public.
The revised code also sets forth several other important guidelines:
- Telemarketing calls are only accepted from 9:00 AM to 10:00 PM.
- The caller must clearly identify himself and state the purpose of the call to the recipient.
- The AI must have a mechanism to handle unsubscribe requests from recipients.
- You have control over the collection of information from the called party and arrangements for subsequent meetings.
- A structured mechanism for handling complaints related to telemarketing activities is essential.
The HKMA expects all approved bodies to comply promptly with these guidelines in accordance with the implementation schedule specified in the Code. The enhanced code will take effect immediately from June 21, 2024.
broader meaning
These changes come as concerns grow about consumer privacy and the invasiveness of telemarketing practices. By limiting call frequency and enforcing stricter guidelines, the HKMA aims to create a more courteous and transparent telemarketing environment.
These improvements are also consistent with a global trend in which regulators are increasingly focusing on consumer protection in financial services. The HKMA’s proactive approach can serve as a model for other jurisdictions seeking to balance marketing practices and consumer rights.
More details can be found in the official announcement on the Hong Kong Monetary Authority website.
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