The Government today launched a two-month public consultation on policy proposals relating to the Trade Descriptions Ordinance (TDO), including a statutory seven-day cooling-off period on pre-paid consumer contracts for beauty and fitness services.

Explaining the proposals, it said issues such as improper selling tactics and risks stemming from pre-payment models are particularly concentrated in the beauty and fitness services industries. Consumers often enter into long contracts involving substantial pre-payments under the sway of aggressive commercial practices or persuasive sales tactics.

It added that there are limitations to the existing TDO in terms of investigatory work by Customs. 

A comprehensive review of the ordinance has therefore been conducted, with reference to various factors, including practices. Various policy proposals are included in the public consultation document.

The statutory cooling-off period on pre-paid consumer contracts for beauty and fitness services is intended to give consumers room to reconsider any pre-payment agreements. 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 would be established. Proposed thresholds for consideration include $3,000 and above, $8,000 and above or $15,000 and above.

The Government also proposes imposing a statutory two-year limit on contract durations, as well as other restrictions on pre-paid beauty and fitness contracts. Moreover, traders would be prohibited from entering into a contract with consumers any more than three months in advance of the contract taking effect.

In addition, the Government proposes adding Section 13I of the TDO, which pertains to the offence of wrongly accepting payment, to Schedule 1 of the Organized & Serious Crimes Ordinance. This would empower Customs with additional investigatory and enforcement powers, including the power to seek restraint orders in court.

The Government will organise consultation sessions to brief the beauty and fitness industries on the policy proposals and to listen to their views and suggestions.

The trade and members of the public can submit views by email, by fax to 2869 4420, or by mail to the Commerce & Economic Development Bureau, 23/F, West Wing, Central Government Offices, 2 Tim Mei Avenue, Tamar, Hong Kong.