Warm reception for cooling-off periods
- Despite self-regulation at fitness and beauty centres being given a chance, dubious sales practices have continued to attract headlines and the time has come for government action
Cooling-off periods, after the signing of fitness and beauty centre contracts, can be traced back to a setback in 2012. The government of the day wanted to include them in the Trade Descriptions Ordinance, but dropped them amid fears of adverse effects on the business sector. This gave such centres another chance to show how self-regulation and discipline could safeguard consumer interests. But dubious sales practices have continued to attract headlines, including unauthorised use of credit card details often involving large sums, long contracts and vulnerable clients. Finally officials felt forced to respond by reinstating plans for cooling-off periods. A three-month consultation on proposed legislation is the result.
Issues include the option of three-day or seven-day cooling-off periods, and refunds being confined to contracts worth HK$3,000 or more. The Consumer Council rightly prefers the seven-day period, allowing more time for calm reflection and independent advice. The council also recommended that only purchases under HK$500 be exempted, based on overseas experience.
Secretary for Commerce and Economic Development Edward Yau Tang-wah has since said the proposed legislation will also cover individual sales of less than HK$3,000 within the same day, and customers may seek a full refund if they exceed the HK$3,000 threshold in total. That goes some way to addressing concern about operators using multiple contracts to get around the cooling-off provision. But compliance with the spirit as well as the letter of the law needs to be monitored carefully and safeguards promptly strengthened to deal with abuses.
It is hard not to feel sympathy for reputable beauty centre operators who genuinely do not believe legislation is the answer to high-pressure sales tactics. To be sure, consumer safeguards that prevail in some sectors of big business do not lie easily with the fierce competition for clients. But experience shows the proposed safeguards will enhance consumer confidence rather than undermine the business environment. It is therefore a step in the right direction towards expanding provisions to cover other services where there is room for improvement in consumer protection.