Govt Launches Consultation On Cooling-off Period

The government has launched a three-month consultation on introducing a mandatory cooling-off period for customers who purchase service contracts for gyms and beauty salons.

This follows a spike of complaints from consumers who claimed to have been flattered or coerced into spending tens of thousands of dollars on expensive beauty or fitness-related packages.

Under the proposal, these companies would, in future, be required to offer refunds if customers who have made pre-payments of over HK$3,000 change their minds within a specific period of time.

According to the consultation paper, consumers could get their money back after seven working days if the cooling-off period is set at three working days. If the period is seven calendar days, the time needed to get a refund would be extended to 14 days, officials proposed.

Commerce Secretary Edward Yau said: "We might assume the business sector might be having reservations on that. But actually I think what we are proposing, hopefully, will be a win-win situation."

"The cooling-off period is not just one-sided to protect consumer interests, it also gives another chance to enterprises to really be serious about whether they would embark on this long-term contract with a consequence."

He said he hoped stakeholders could reach a compromise on the matter.

Officials said they are hoping to regulate various industries in a progressive manner. They plan to submit a bill to Legco for scrutiny in the coming legislative year.

Civic Party lawmaker Kwok Ka-ki said the government could be a lot bolder, extending the cooling-off periods to other industries that also use high-pressure tactics to make sales. Kwok said he thinks the proposed new rules should also apply to contracts involving smaller sums of money.