Hong Kong beauty operators warn tighter rules may deal ‘blow to our trade’

A Hong Kong government plan to tighten regulations on prepaid beauty and fitness contracts has sparked concern among operators, who warn that a rigid refund window and caps on administrative fees ignore operational realities.

The government on Monday launched a two-month public consultation on proposed amendments to the Trade Descriptions Ordinance, aimed at strengthening consumer protection amid persistent complaints about unfair practices and high-pressure sales tactics.

Key proposals include the introduction of a seven-day cooling-off period and a 14-day refund period.

Nelson Ip Sai-hung, founding chairman of the Federation of Beauty Industry, said the sector was most concerned about the limit on administrative fee deductions for refunds, arguing that businesses would have to pay out of their own pockets when a consumer cancelled a contract.

According to the proposal, traders may deduct an administrative fee if a consumer uses a non-cash payment method, but only 2 per cent of the amount for a one-off payment, and 5 per cent for an instalment payment plan.

“Does the government know how much banks are charging us for administrative fees? It could be over 10 per cent for a 36-month instalment plan,” he said.