Many Asian destinations are famous for their shopping, sometimes due to currency exchange rates, or perhaps because of low taxes. The region also combines the best of both worlds – international labels can easily be found in upmarket shopping malls while exotic local products are like hidden treasures in little shops and at street markets.
Although most major Asian countries have consumer laws, in many cases these are either not very strict or not strictly enforced. Being a traveller, you are also unlikely to have the time to fight the red tape or take your case to a small claims court.
Luckily, in a number of the largest cities various agencies have been set up with the sole purpose of assisting consumers in cases of purchases gone wrong (see box). Some of these have websites full of information that you may want to browse before you venture out into the respective destination’s retail world.
Whereas in many Western countries – especially in North America – return, exchange and even refund policies are common, the picture in many Asian countries and cities is different. In Hong Kong, for example, the more common line you may see posted in a shop window is “No refund or exchange once the merchandise is out the door”.
There are exceptions. International department stores such as Marks & Spencer and H&M adhere to their global return and exchange policies in Asia, and large regional chains such as Giordano also have similar policies. The allowed period for return and exchange is usually two weeks or 30 days – long enough for any traveller to exercise his/her rights.
With small individual shops, though, you are advised to be more cautious. According to a spokesperson for the Hong Kong Consumer Council, many of the complaints it receives from travellers involve purchases of consumer electronics. Because the city has no sales tax and is very tech-oriented, many visitors here like to buy cameras and gadgets when in town.
As with many other cities, touristy areas are full of tricksters gunning for gullible foreigners. Many camera shops in Tsim Sha Tsui have been named and shamed by the Consumer Council after repeated complaints. These outlets display attractive prices in the display window, but once the consumer is inside, those good deals mysteriously disappear and overpriced items are “forced on” the consumer, with floor staff sometimes even becoming hostile if the consumer refuses to buy.
It is, therefore, advisable to buy from larger retailers such as Fortress and Broadway. The Hong Kong Tourism Board also gives out Quality Tourism Services Scheme door stickers to retailers it considers reliable.
Even though Hong Kong’s consumer laws generally favour entrepreneurs, the city is mostly well regulated and consumers are afforded reasonable protection. Across the border in China, however, the story is very different. The unprecedented speed of commercial development in the country has resulted in an under-regulated retail market. Many instances of consumer fraud in Chinese cities have been so outrageous that they made headlines around the world.
One of them even made it to the second US presidential election debate last month, when Republican candidate Mitt Romney said: “China’s been cheating over the years... There’s even an Apple store in China that’s a counterfeit Apple store, selling counterfeit goods.”
What Romney was talking about was a case last year in August, when an American living in Kunming described on his blog a visit to a fake Apple shop that made so much effort to look like the real thing, even the staff were wearing the signature blue uniform. The posting went viral and prompted the local authority to take action. Subsequently, an official figure was released to put the number of such shops at 22. However, only two were reportedly shut down for operating without a licence – what happened to the rest remains unclear.
As it turned out, those shops were indeed fakes, although the merchandise they sold was genuinely Apple’s. Demand for the brand in China is so huge, parallel imports have flooded the market and prompted the opening of many unauthorised dealerships. The gadgets you buy in these shops might be real, but they will not be protected by any official warranty.
Whichever country you are in, if you want to make sure that you are buying from an authorised retailer, you should check if the shop is listed on the brand’s website.
Counterfeit goods are a widely reported problem in China, but they can also be found in Thailand, South Korea, Hong Kong and various Middle Eastern countries. In a report recently published by Consumer International, a UK-based world federation of consumer groups, counterfeit trading was highlighted as an issue of concern in the Middle East.
“Existing consumer protection regulations in most countries in the Middle East focus on the rights of distributors and fraudulent practices that are detrimental to them, rather than on the protection of ordinary consumers,” the report stated. “Consumers buy fake brands because they look like they are good quality when most often they are not. Despite being aware of this, consumers still prefer them because they are 30 to 50 per cent cheaper than the originals. Access to justice for consumers is limited and compensation is provided only in cases of commercial fraud.”
The report may have focused on the Middle East, but the pitfalls being pointed out apply to all countries where counterfeit consumer goods are common. Fakes are usually offered by street stalls or makeshift shops at suspiciously cheap prices, so anyone with a reasonable mind should be able to tell that these items offer no guarantee of quality.
One of the characteristics of shopping in Asia is the street market. Being the world’s factory, the region has no shortage of cheaply manufactured consumer goods, and stall owners can easily source them. The items may look brand new and in good condition, but appearances can be deceiving. The fact that you are unlikely to get a receipt from these places also means seeking redress when your purchase turns out to be faulty is very difficult.
It is also worth reminding oneself that products sold from these places may not have been tested for safety. So while it may be harmless to pick up a T-shirt or a cheap watch, certain items just should not be bought from small stalls. There have been cases reported in Hong Kong of cheap, low-quality phone batteries bursting into flames, while the lenses in sunglasses bought from street markets will probably not contain UV protection at all, and will end up harming your eyes. Children’s toys of unknown origin may also contain toxic paint.
When you do end up with a substandard product bought from a market stall or makeshift shop, there are only two viable options: take it as a lesson learned, or go back to the seller to negotiate. These places are often packed with pedestrian traffic, and the owners may not want to engage in a heated debate with you in public and risk turning away potential customers. They might therefore quickly exchange your faulty merchandise to make you go away. A refund, however, will be close to impossible.
At the end of the day, consumers have to stand up for themselves. It really does pay to do a little research before going out to splurge, and in the age of smartphones and iPads, it’s possible to do some instant research or read up on reviews from fellow travellers before you enter a shop or make a purchase. The 15 minutes you spend might just save you a lot of grief.
Useful contacts
Hong Kong
Consumer Council
Complaint & Enquiry Hotline: +852 2929 2222,
open Mon-Fri 9am-5.30pm
Singapore
Consumers Association of Singapore
Hotline: +65 6100 0315, open Mon-Fri 9am-5pm,
Sat 9am-12pm
Walk in consultation: 170 Ghim Moh Road, #05-01 Ulu Pandan Community Building, open Mon-Fri 9am-4pm
China
(available in several major cities such as Guangzhou and Shanghai)
Consumer complaints hotline:
+86 [the city’s dialling code] 12315
