Calls for Stronger Prepayment Regulations in Light of Physical Gym's Closure
Stricter Regulations Urged
Lawmakers in Hong Kong are advocating for increased regulation regarding prepayment arrangements following the closure of the Physical gym chain. It has been reported that one woman had spent HK$200,000 on a long-term membership. Chief Executive John Lee Ka-chiu acknowledged the need to review prepayment conditions, including the potential reintroduction of a cooling-off period for prepaid contracts.
Consumer Complaints and Concerns
- The gym chain faced 3,861 complaints with over HK$129 million in claims filed with the Consumer Council.
- Lawmakers emphasize the necessity for a cooling-off period and longer-term membership limits to protect customers.
- Several members of the Fitness Professionals Association voiced concerns regarding the implications for businesses involved, suggesting the need for a balanced approach.
Legislators’ Proposals
- Lawmaker Kingsley Wong Kwok suggests limiting memberships to five years based on typical rental durations.
- Michael Tien Puk-sun advocates for placing prepaid funds into trust accounts to safeguard consumer investments.
- Concerns about the ageing gym equipment and service quality under long contracts were raised.
This situation underscores the importance of establishing solid parameters for prepaid services to better protect gym members and ensure their rights are upheld.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.