Cooling-off key 'lies in prepayments amid chain woes'
A marketing expert suggested on Friday that the amount of prepayments should be taken into consideration in deciding whether service contracts should be subject to cooling-off periods. The suggestion by Kenneth Kwong of the Hang Seng University's Department of Marketing came following the abrupt closure of the Hotstone Yoga chain on Wednesday. The Consumer Council had received 27 complaints as of…
A marketing expert has advised that prepayment amounts should be considered when deciding if service contracts should have cooling-off periods. Kenneth Kwong, from Hang Seng University's Department of Marketing, made the suggestion following the sudden closure of Hotstone Yoga. The Consumer Council had received 27 complaints by Thursday evening, with losses totaling nearly HK$430,000.
The government is considering amending the Trade Descriptions Ordinance to introduce a mandatory seven-day cooling-off period and a 14-day refund period for prepaid contracts in certain industries. Kwong expressed shock at Hotstone's abrupt shutdown, noting that some customers had only signed up for classes shortly before the closure.
He argued that a broader application of the cooling-off period, based on prepayment amounts, would better protect customers across various service sectors.
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