Over 30 members of Hong Kong’s Physical gym signed deals within 3 days of chain’s closure
City’s consumer watchdog says gym played on members’ emotional heartstrings as amount involved in complaints hits HK$133 million
More than 30 members of Hong Kong gym chain Physical signed contracts within three days of its abrupt closure, the city’s consumer watchdog has revealed, amid a police investigation into possible fraud and over HK$133 million (US$17 million) in customer claims.
Consumer Council chief executive Gilly Wong Fung-han said on Sunday that the figure was recorded as of noon on Thursday, while one member who had contacted the watchdog signed contracts worth HK$360,000 just three days before the chain shut down on September 6.
Wong added that the member, who joined the fitness chain over a decade ago, was persuaded to enrol in personal training classes for the first time by trainers who said they could receive a bonus if customers signed up for packages and make more money for the company in a struggling economy.
“The customer was soft-hearted,” Wong told a television news programme.
She said he had signed three packages at HK$120,000 each over three consecutive days, thinking he would not be mistreated after years of being a member.
“Previously, we observed high-pressure sales tactics in the gym and beauty sector. It seems the company was tapping into emotions, with some customers trusting trainers they had been with for a long time,” she said.