Suggest a correction

Deletion and substitution of paragraph 3.5

Variation of Code of Practice for Market Conduct in the Provision of Media Services

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Paragraph 3.5 of the Code is deleted and the following paragraphs substituted therefor:“3.5Prohibition on Excessive Early Termination Liabilities A Regulated Person may enter into an agreement pursuant to which it provides a Subscriber with a discount or special consideration in return for the Subscriber’s agreement to commit to a minimum service period for a Subscription Service. Subject to paragraph 3.5A of this Code, such agreements may contain provisions providing for termination liability in the event that the said Subscriber terminates the agreement before the expiry of the minimum service period. However, the amount of any such early termination liability must be proportionate to:(a)the reasonable value of the discount or special consideration provided by the Regulated Person; and(b)the duration of the period for which the Subscriber had consumed the Subscription Service.3.5AProhibition on Early Termination Charges in Certain Cases(a)Subject to paragraph 3.5A(b) of this Code, a Regulated Person must not require a Subscriber to pay any amount for terminating a Subscription Television Service provided to a Subscriber before the expiry of any minimum service period referred to in paragraph 3.5 of this Code applicable to the Subscription Television Service, where:(i)the termination is consequent upon any one of the following events:(A)the Regulated Person exercises or seeks to exercise its right to unilaterally increase the subscription fee, or to cease the provision of any material channel, under the agreement;(B)the Regulated Person ceases to provide or removes 20% or more of the total channels in the Subscription Television Service; (C)the Regulated Person ceases to provide or removes any material sports content in any channel from the Subscription Television Service, except where the cessation or removal satisfies all of the following:(CA)the period of availability or available season for the material sports content comes to an end;(CB)the Regulated Person notified the Subscriber of such period or season prior to the Subscriber contracting for the provision of the material sports content; and(ii)the Subscriber terminates the Subscription Television Service or the agreement within 30 days after the occurrence of any one of the events referred to in paragraph 3.5A(a) of this Code.(b)The prohibition in paragraph 3.5A(a) of this Code applies only to the termination of a Subscription Television Service that is contracted for on or after 30 April 2016.(c)A termination under paragraph 3.5A(a) of this Code does not permit the Regulated Person to require the Subscriber to pay any amount that pertains to equipment which was not necessary for the provision of the Subscription Television Service, but which was provided to the Subscriber in addition to and on account of the Subscription Television Service, unless:(i)prior to the Subscriber contracting for the Subscription Television Service, the Regulated Person:(A)brought to the attention of the Subscriber the Subscriber’s liability to pay such amount in the event of such a termination; and(B)offered to provide to the Subscriber the same Subscription Television Service without the provision of the equipment; and(ii)the amount satisfies the requirements of paragraph 3.5 of this Code for early termination liability.3.5BProhibition on Excessive Charges in Certain Cases(a)Where a Regulated Person provides a Subscriber with a Subscription Television Service and one or more other Subscription Service(s) as a bundle or package of services, and the Subscriber terminates the Subscription Television Service in the bundle or package of services, the subscription fee payable for the other Subscription Service(s) must not exceed the subscription fee which the Subscriber paid for both the Subscription Television Service and the other Subscription Service(s) before the termination of the Subscription Television Service.(b)Paragraph 3.5B(a) of this Code only applies where the termination by the Subscriber is pursuant to paragraph 3.5A of this Code.3.5CDuty to Notify of Certain Events3.5C.1Cessation of channel, material content or business(a)Subject to paragraph 3.5C.1(b) of this Code, where a Regulated Person intends to cease providing any channel or material sports content, the Regulated Person must give to all its Subscribers to whom the channel or material sports content of the channel is provided, notice in writing of its intention to do so not less than one month before the date on which the Regulated Person intends to cease the provision, as the case may be.(b)Where a Regulated Person intends to cease its operations, or cease providing any broadcasting service in respect of which it has (or is exempt from the requirement to have) a broadcasting licence under the Broadcasting Act (Cap. 28), the Regulated Person must give Consumers notice in writing of its intention to do so not less than 6 months before the date of the cessation.3.5C.2Change in subscription fee(a)Where a Regulated Person intends to increase any subscription fee for any service it provides (other than any service provided on an interactive basis), the Regulated Person must give all its Subscribers to whom it provides the service notice in writing of its intention to do so not less than one month before the date of the increase.(b)Before increasing the subscription fee for any service provided on an interactive basis, a Regulated Person must give all its Subscribers to whom it provides the service reasonable notice in writing of its intention to do so.”.

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