Gym chain closure probed

September 10, 2024

The Government has said it is highly concerned about the temporary suspension of operations announced by a fitness and beauty group on September 6, adding that an inter-departmental team has been set up in response.

 

Customs and Police will investigate whether any offences have been committed either in relation to unfair trade practices under the Trade Descriptions Ordinance (TDO), or on other counts. Appropriate enforcement actions will be taken if any violations are found to have occurred.

 

As of 4pm today, Customs and Police had received 733 and 19 complaints, respectively, regarding the group.

 

Customs urged consumers who have purchased fitness or beauty services from the group to contact the department as soon as possible.

 

Members of the public can report any suspected violations of the TDO to the department’s 24-hour hotline, on 2545 6182, to its dedicated crime-reporting email account, or by filling out an online form.

 

The department reminded traders they must comply with the TDO’s requirements. It added that consumers should procure services from reputable businesses and be prudent when prepaying for services. Furthermore, they should keep relevant records such as transaction receipts and contracts after purchasing services.

 

Under the TDO, any trader commits an offence if at time of accepting payment the trader intends not to supply the product, or intends to supply a materially different product, or if there are no reasonable grounds for believing the trader will be able to supply the product within a specified or reasonable period. The maximum penalty upon conviction is a fine of $500,000 and imprisonment for five years.

 

The Police Force’s Commercial Crime Bureau has also set up a task force to investigate fraud and false statement offences.

 

It urged the public to report any relevant information to the department’s 24-hour hotline, on 2860 5012.

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