Hong Kong lawmakers seek stronger rules on prepayment schemes after Physical gym closure
One legislator flags case in which a Hongkonger paid HK$200,000 for three-decade membership that will last until she is 85
Hong Kong lawmakers have called for more regulation on prepayment arrangements in the city after the closure of gym chain Physical, with one legislator revealing that a woman had paid HK$200,000 (US$25,640) for a three-decade membership.
Chief Executive John Lee Ka-chiu also said on Saturday the government would revisit whether to introduce a cooling-off period for prepaid contracts – a suggestion first floated in 2019 but put on hold later due to the struggling economy.
“After this [Physical] incident, the Commerce and Economic Development Bureau will examine whether the situation in 2019 is the same as now or if there are any differences,” he said, adding authorities would take into consideration both the city’s overall economic situation and the investigation into the chain’s closure.
The gym chain has been at the centre of 3,861 complaints filed with the Consumer Council and over HK$129 million in claims as of Saturday after it announced a “temporary closure” last week.
Lawmaker Kingsley Wong Kwok, also chairman of the Hong Kong Federation of Trade Unions (FTU), said a cooling-off period and a limit on the duration of memberships were two areas that the city needed to addressed following their experience handling complaints.
He said it might be reasonable to limit companies from selling packages beyond five years – which he said was the usual rental period for a premises – to protect customers.
