Cooling-off key 'lies in prepayments amid chain woes'

A marketing expert has called for prepayment amounts to be considered when determining whether service contracts should have cooling-off periods. Kenneth Kwong of the Hang Seng University's Department of Marketing made this suggestion following the sudden closure of the Hotstone Yoga chain, which resulted in 27 complaints and a loss of nearly HK$430,000.

The Consumer Council is investigating the case, and the government is planning to amend the Trade Descriptions Ordinance to introduce mandatory cooling-off and refund periods for prepaid contracts. Kwong was surprised by the closure, as some customers had only recently signed up for classes. He argued that prepayment amounts over HK$1,000 should trigger cooling-off periods, as it would be difficult to decide which industries to regulate.

The lawmaker also suggested that enhanced transparency due to law amendments could encourage customers to make prepayments, benefiting both operators and consumers. The government plans to submit amendments to the ordinance within the first half of next year, and lawmaker Yiu Ming urged for a faster process and stricter penalties for employers engaging in unfair trade practices.