Consumer Protection Tips for the Closure of Fitness Centres

1. ​​​​​​Should I accept the offer to transfer my membership to another fitness centre as the current centre has been closed? 

Consumers should understand and consider the following from the fitness centre before deciding : 

• Are there any additional charges involved in the transition scheme 

• How to calculate prepaid and unused services 

• Request that the documents to be signed and the terms and conditions for the transferral be provided in advance 

• Would the same trainer be arranged to provide personal training for the unused classes 

• The consequences of not accepting the transition arrangement, for example, how to compensate according to the contract terms, or refund the advance payment and deposit 

• Whether to agree to submit personal data to another fitness centre 

 2. With the closure of fitness centres, what should consumers pay attention to in safeguarding their own rights? 

• Calculate the remaining balance of prepayment, unused services, prepare related transaction records such as contracts, receipts, credit card slip and correspondence exchange with the trader, for they may help to provide support in the event of a dispute in the future 

• Check with the fitness centre for arrangements such as how to retrieve personal items in lockers 

• For refunds, please note the following: 

• Consumers should contact the credit card issuer as soon as possible if they have made a lump-sum payment by credit card, together with the signed statement and a copy of the purchase receipt/contract and try to ask the issuer to claim the unused prepaid portion from the commercial bank of the fitness centre on their behalf. Whether consumers can get their money back or not would depend on many factors, including  whether the transaction date has exceeded the bank's specified period 

• Consumers paying by credit card instalments are in fact signing a loan contract with a credit card company. Under normal circumstances, consumers are still responsible for regular repayments even if the fitness centre closes down 

If the fitness centre is liquidated, will consumers receive compensation? 

• When a business is closed and liquidated, its assets generally need to be used to repay the debts of higher priority creditors. Consumers can only act as unsecured creditors after other creditors, for instance, employees of the liquidating company, government, secured creditors, etc. If there is still a balance, consumers will receive compensation; so there is a chance that consumers may not be able to retrieve or enjoy the purchased products or services, receive payment, or refund the prepaid amount and deposit 

4. Does the business suspension of fitness centres mean that it is closed? Can the Consumer Council follow up? 

• If the fitness centre is fully suspended, and the Council fails to contact the person in charge of the company, the usual conciliation process that the Council adopts may no longer apply 

• When the fitness centre is liquidated, no matter through self-application or others’ application, a formal notice will normally be provided to entrust a provisional liquidator to take over the company concerned. Therefore, consumers can also pay attention to the official announcement of the company and contact the provisional liquidator as instructed for next-step arrangements, such as registering as a creditor 

5. Although fitness centres are fully aware that they will soon close and fail to provide services to consumers, it continues to entice customers with marketing and promotion. Will this involve a violation of the Trade Descriptions Ordinance? 

• According to the Trade Descriptions Ordinance, any trader, when accepting payment, intends not to supply the relevant product; or intends to supply a product that is materially different from the product in respect of which the payment or other consideration is accepted; or there are no reasonable grounds to believe that the product can be supplied by the trader within a specified or reasonable period, it is considered breaching the law. 

• If consumers suspect violations of the Trade Descriptions Ordinance, they can report the case to the Customs and Excise Department (C&ED). The Council can also refer the cases to C&ED for follow-up 

6. How to seek help from the Consumer Council? 

• Consumers are advised to fill in the online complaint form and submit it directly at the following URL: Complaint Form - Consumer Council  

• They may also call the complaint and enquiry hotline at 2929 2222, Monday to Friday from 9:00 am to 5:30 pm. Elders can call the Elderly Hotline at 2110 2288.