1. 1 Unsolicited Electronic Messages Ordinance An Overview of Implementation and Enforcement 28 May 2007

2. 2 Summary of Unsolicited Electronic Messages Ordinance (UEMO) Scope of Application Covers electronic messages, including pre-recorded promotional voice messages, fax, email, SMS/MMS messages Covers electronic messages, including pre-recorded promotional voice messages, fax, email, SMS/MMS messages Purpose of messages are for promotion of products, services, offering of business opportunities, or promoting the sending organisations; and Purpose of messages are for promotion of products, services, offering of business opportunities, or promoting the sending organisations; and Messages have a Hong Kong Link: Messages have a Hong Kong Link: the message originates from Hong Kong; the message originates from Hong Kong; the message is sent or authorised to be sent by a person physically in Hong Kong or a Hong Kong company/organisation; the message is sent or authorised to be sent by a person physically in Hong Kong or a Hong Kong company/organisation; the telecommunication device that is used to access the message is located in Hong Kong; the telecommunication device that is used to access the message is located in Hong Kong; the message is received in Hong Kong (irrespective of whether the recipient is a Hong Kong resident); or the message is received in Hong Kong (irrespective of whether the recipient is a Hong Kong resident); or the message is sent to a Hong Kong telephone number. the message is sent to a Hong Kong telephone number.

3. 3 Summary of UEMO Exemptions Person-to-person interactive communications Person-to-person interactive communications Messages sent in response to recipients’ specific requests (e.g. fax-on-demand) Messages sent in response to recipients’ specific requests (e.g. fax-on-demand) Messages with primary purposes of: Messages with primary purposes of: confirming a commercial transaction that the recipient has previously agreed to enter into with the sender etc. (e.g. invoice, receipts), or to provide warranty or product recall information etc. confirming a commercial transaction that the recipient has previously agreed to enter into with the sender etc. (e.g. invoice, receipts), or to provide warranty or product recall information etc. providing notification (such as account balance information or account statement) concerning a change in the terms or features, recipient’s standing, status with respect to a subscription, membership, account, loan or comparable ongoing commercial relationship providing notification (such as account balance information or account statement) concerning a change in the terms or features, recipient’s standing, status with respect to a subscription, membership, account, loan or comparable ongoing commercial relationship providing information related to an employment relationship or a related benefit plan providing information related to an employment relationship or a related benefit plan Television and sound broadcasting programmes Television and sound broadcasting programmes

4. 4 Phased Commencement Phase I – with effect from 1 June 2007 Phase I – with effect from 1 June 2007 Use of unscrupulous techniques to send out a large quantity of commercial electronic messages (Part 3 of UEMO) Use of unscrupulous techniques to send out a large quantity of commercial electronic messages (Part 3 of UEMO) Fraud and other illicit activities related to the sending of multiple commercial electronic messages. (Part 4 of UEMO) Fraud and other illicit activities related to the sending of multiple commercial electronic messages. (Part 4 of UEMO) Phase II – around end-2007 (to be announced in Gazette) Phase II – around end-2007 (to be announced in Gazette) “Opt-out” regime (Part 2 of UEMO) and other supporting provisions; “Opt-out” regime (Part 2 of UEMO) and other supporting provisions; Reasons: Reasons: Time to set up ‘Do-Not-Call’ Registers Time to set up ‘Do-Not-Call’ Registers Further discussions with industry on regulations and codes of practice Further discussions with industry on regulations and codes of practice Time for businesses to revise and update their information systems and practices Time for businesses to revise and update their information systems and practices

5. 5 Phase I (Effective from 1 June 2007) Prohibition of using unscrupulous techniques to send out large volume of commercial electronic messages (to be enforced by OFTA) Prohibition of using unscrupulous techniques to send out large volume of commercial electronic messages (to be enforced by OFTA) Supply, acquisition or use of electronic address harvesting software or harvested-address lists for sending commercial electronic messages without the consent of the recipients Supply, acquisition or use of electronic address harvesting software or harvested-address lists for sending commercial electronic messages without the consent of the recipients ‘Dictionary attacks’ or ‘brute-force attacks’ ‘Dictionary attacks’ or ‘brute-force attacks’ Use of scripts or other automated means to register for 5 or more e-mail addresses Use of scripts or other automated means to register for 5 or more e-mail addresses Relay or re-transmission of multiple commercial electronic messages. Relay or re-transmission of multiple commercial electronic messages. Penalty Penalty Upon summary conviction – fine up to HK$100,000 and imprisonment up to 2 years (no imprisonment terms for offences relating to address harvesting) Upon summary conviction – fine up to HK$100,000 and imprisonment up to 2 years (no imprisonment terms for offences relating to address harvesting) Upon conviction on indictment – fine up to HK$1 million and imprisonment up to 5 years Upon conviction on indictment – fine up to HK$1 million and imprisonment up to 5 years

6. 6 Phase I (Effective from 1 June 2007) Fraud and other illicit activities related to the sending of multiple commercial electronic messages (to be enforced by the Police) Fraud and other illicit activities related to the sending of multiple commercial electronic messages (to be enforced by the Police) Accessing a telecommunications device without authorisation to send multiple commercial electronic messages Accessing a telecommunications device without authorisation to send multiple commercial electronic messages Sending of multiple commercial electronic messages using ‘zombie’ computers Sending of multiple commercial electronic messages using ‘zombie’ computers Falsifying header information in multiple commercial electronic messages Falsifying header information in multiple commercial electronic messages Registering for electronic addresses or domain names using information that falsifies identity of actual registrants Registering for electronic addresses or domain names using information that falsifies identity of actual registrants False representations regarding registrants of electronic addresses or domain names False representations regarding registrants of electronic addresses or domain names Penalty Penalty A fine of any amount as determined by the Court and imprisonment up to 10 years. A fine of any amount as determined by the Court and imprisonment up to 10 years.

7. 7 Reporting Mechanism Reporting Forms Reporting Forms can be downloaded from or filled in online on OFTA’s web site www.ofta.gov.hk can be downloaded from or filled in online on OFTA’s web site www.ofta.gov.hkwww.ofta.gov.hk can be obtained via fax-on-demand service through OFTA’s hotline (2961 6333) can be obtained via fax-on-demand service through OFTA’s hotline (2961 6333)

8. 8 Handling of Reports or Complaints OFTA will be first point of contact to receive all reports or complaints OFTA will be first point of contact to receive all reports or complaints Drawing reference to overseas enforcement experience, OFTA will collate and analyse all reports and complaints to identify major spammers and adopt a progressive and targeted approach to take priority actions against those spammers Drawing reference to overseas enforcement experience, OFTA will collate and analyse all reports and complaints to identify major spammers and adopt a progressive and targeted approach to take priority actions against those spammers Investigation will commence if collated reports and complaints have prima facie evidence of unscrupulous techniques to send out large volume of commercial electronic messages Investigation will commence if collated reports and complaints have prima facie evidence of unscrupulous techniques to send out large volume of commercial electronic messages For cases of suspected “fraud and other illicit activities related to the sending of multiple commercial electronic messages”, if there is prima facie evidence after preliminary investigation, OFTA will refer them to the Police for follow up For cases of suspected “fraud and other illicit activities related to the sending of multiple commercial electronic messages”, if there is prima facie evidence after preliminary investigation, OFTA will refer them to the Police for follow up

9. 9 Phase II (Effective towards end-2007) Senders of commercial electronic message must follow the following rules: Senders of commercial electronic message must follow the following rules: providing accurate sender information including names and contact information providing accurate sender information including names and contact information providing unsubscribe facility and honour such unsubscribe request within 10 working day providing unsubscribe facility and honour such unsubscribe request within 10 working day not sending commercial electronic message to the electronic addresses registered in ‘do-not-call’ registers, unless consents have been given by recipients not sending commercial electronic message to the electronic addresses registered in ‘do-not-call’ registers, unless consents have been given by recipients not sending commercial electronic mail messages with misleading subject headings not sending commercial electronic mail messages with misleading subject headings not withholding calling line identification (CLI) information when sending commercial electronic messages to a telephone number not withholding calling line identification (CLI) information when sending commercial electronic messages to a telephone number OFTA will set up ‘do-not-call’ registers for pre-recorded voice/video messages, fax messages, and SMS/MMS messages OFTA will set up ‘do-not-call’ registers for pre-recorded voice/video messages, fax messages, and SMS/MMS messages

10. 10 Phase II (Effective around end-2007) Telecommunications Authority may issue Enforcement Notices to those who contravened the above rules (in Part 2 of UEMO), requiring them to take steps to remedy contraventions within specified timeframes Telecommunications Authority may issue Enforcement Notices to those who contravened the above rules (in Part 2 of UEMO), requiring them to take steps to remedy contraventions within specified timeframes Penalty for non-compliance with Enforcement Notices Penalty for non-compliance with Enforcement Notices 1st conviction: fine up to HK$100,000 1st conviction: fine up to HK$100,000 2 nd and subsequent conviction: fine up to HK$500,000 2 nd and subsequent conviction: fine up to HK$500,000 Continuing offence: further fine of HK$1,000 a day Continuing offence: further fine of HK$1,000 a day

11. 11 Further Information For more information, frequently asked questions and useful links, please visit OFTA’s website www.ofta.gov.hk For more information, frequently asked questions and useful links, please visit OFTA’s website www.ofta.gov.hkwww.ofta.gov.hk OFTA hotline: 2961 6333 OFTA hotline: 2961 6333