Under the proposal, customers will be given seven days after a purchase to change their minds and get a full refund.
In a statement, the consumer watchdog said a seven-day cooling-off period will give consumers sufficient time to reflect, reducing purchases made under impulsive consumption decisions, misleading sale tactics or intimidating circumstances.
“This is an important step in strengthening consumer protection against unfair trade practices and enhancing the overall consumer protection regime,” it stated.
The council also welcomed capping contracts at two years and requiring services to begin within three months of their signing.
It noted that most complaints it’d received over the past two years regarding the closure of beauty and fitness service providers involved contracts that lasted more than two years. In extreme cases, complainants found their contract start dates deferred by more than 30 years.
Lawmaker Bill Tang from the Federation of Trade Unions praised the proposal for balancing the interest of all parties.
“I firmly believe the fitness and beauty industries have made sufficient preparation for a statutory cooling-off period,” he said.
Citing the sudden closure of a major fitness chain in 2024 which caused consumer losses of more than HK$100 million, Tang said the legislative proposals would regain consumer confidence in the industry.
He also urged officials to expand the scope of legislation, covering other industries with high-value contracts and prone to disputes, such as home renovations.
Fellow legislator Holden Chow from the DAB also voiced his support for the proposal, saying it’s necessary to root out the “bad apples“.
