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HK Govt Proposes 7-Day Cooling-off Period for Beauty & Fitness Prepayment Contracts, Max Term Capped at 2 Yrs; Customs Granted Additional Investigation/ Enforcement Powers
2026-06-29 15:45:15 The Government today (June 29) launched a two-month public consultation on policy proposals relating to the Trade Descriptions Ordinance (TDO). The Government has put forward the following three policy proposals in the public consultation document: (1) Stipulating a statutory cooling-off period on pre-paid consumer contracts for beauty and fitness services to provide consumers with room to reconsider their pre-payment decisions following the conclusion of contracts. The key proposals include: *The proposed cooling-off period is seven calendar days, and the proposed refund period is 14 calendar days. *A regulatory threshold based on the contract amount will be set up. The proposed thresholds for consideration include (i) $3,000 or above; (ii) $8,000 or above; or (iii) $15,000 or above. This would protect consumers while minimising the impact on small-value transactions. (2) Imposing a statutory limit on contract duration and other restrictions on pre-paid consumer contracts for beauty and fitness services to reduce the risks of the pre-payment mode of consumption. The key proposals include: *The proposed limit on contract duration is two years, providing a useful indicator for consumers to evaluate whether the pre-payment amount is reasonable, while minimising the impact on the majority of contracts bearing relatively more reasonable durations. *It is proposed that traders be prohibited from entering into a contract with consumers that takes effect later than three months after the contract is entered into. (3) Including Section 13I of the TDO pertaining to the offence of wrongly accepting payment into Schedule 1 to the Organized and Serious Crimes Ordinance to empower the C&ED with additional investigatory and enforcement powers, including prohibiting any person from dealing with a relevant property through a restraint order from the court. The proposal aims to handle cases involving wrongly accepting payment more effectively, and enhance the deterrent effect on unscrupulous traders. ~ AASTOCKS Financial News Website: www.aastocks.com | |