| (Hong Kong, 13 August 2010) The Board of Octopus
Holdings Limited (OHL) announces that it has today submitted
all documents requested by the Legislative Council Financial
Affairs Panel (FA Panel) to the Legislative Council Secretariat,
and will continue to cooperate with panel members to address
the concerns of our customers arising from the use of personal
data.
In addition to offering full support to the FA Panel, Octopus
will also fully cooperate with the Privacy Commissioner for
Personal Data (PCPD) and the Hong Kong Monetary Authority
(HKMA) in their inquiries.
The Board of OHL extends its deep apology again for the
anxiety and concern that this data management business has
caused to cardholders and the community.
Octopus's priority now is to focus on its core businesses,
and undertake immediate measures to restore confidence in
Octopus.
In light of the concern raised, Octopus has undertaken the
following actions:
| 1. |
Terminated the provision of customer data
to merchant partners for marketing purposes, with effect
from 25 July 2010. |
| 2. |
Suspended the registration of new members under the
Rewards Program pending the release of a new registration
form. The new form will reflect the recommendations of
the PCPD in its interim report. |
| 3. |
Established a Special Committee of the OHL Board comprising
three independent Non-Executive Directors to review this
data management matter. The Special Committee will be
assisted by Deloitte, an independent auditor, to conduct
a review of Octopus's policies and practices in protecting
customer data and privacy. |
| 4. |
Immediate steps will be taken to delete any non-essential
personal data on record in the Octopus database. An independent
auditor will thereafter be appointed to confirm that such
non-essential personal data has been deleted from Octopus's
database, and also to reconfirm that personal data transferred
to merchant partners has been returned to Octopus or deleted. |
| 5. |
Donated an amount of $44 million equivalent to the
revenue from the data management business for the period
from 2006 to June 2010 to the Community Chest. Once the
final audited figure of the revenue earned from the data
management business for the entire period between 2002
and 2010 is available, a further amount equivalent to
any balance of such revenue earned will also be donated. |
Octopus touches the lives of most Hong Kong people, and the
Board recognizes that they have been let down in how Octopus
has managed this issue. The Board also recognizes that it
could have been more sensitive to public sentiment concerning
privacy, and could have handled this matter better. Octopus
will take necessary steps to restore the trust of Octopus
cardholders and the public.
-End-
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