Businesses can proactively offer cooling-off terms on prepaid services to enhance consumer trust without waiting for legislation, according to Hong Kong’s consumer watchdog amidst a surge in complaints post the Physical gym chain scandal.
Consumer Council’s chief executive, Gilly Wong Fung-han, reported 4,191 complaints with claims amounting to HK$141 million (US$18.1 million) related to the fitness chain closure, with 212 complainants over 65 years old.
Despite Chief Executive John Lee Ka-chiu’s statement about reconsidering a cooling-off period for prepaid contracts, the proposal from the Consumer Council aims to address customer grievances promptly.
80% of complaints involved fitness services, indicating a pressing need for accountability and transparency in service providers’ dealings. The abrupt closure of Physical Health Centre and subsequent arrests of directors over alleged fraudulent practices have heightened concerns among consumers.