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What is Cooling-off Period?

  • What is the Cooling-off Period?

The cooling-off period is a specific timeframe that allows consumers to cancel their orders and obtain refunds after purchasing certain products or services. This system is primarily designed to protect consumer rights, giving them time to reconsider their purchasing decisions.

  • Current Status of Cooling-off Period Legislation in Hong Kong's Beauty Industry

In Hong Kong, the issue of a cooling-off period in the beauty industry has been discussed for many years, but no legislation has been enacted to date.

  • 2019 Public Consultation

Initiation: The Hong Kong government launched a three-month public consultation in 2019 to gather public opinions on establishing a statutory cooling-off period for beauty and fitness service contracts.


Outcome: Following the consultation, no further legislative action was taken. The Commerce and Economic Development Bureau responded that due to significant changes in Hong Kong's economic environment and social conditions, especially in the post-pandemic recovery phase, businesses are facing numerous challenges, necessitating careful consideration of the related proposals.

  • Recommendations from the Hong Kong Consumer Council
  • Legislative Cooling-off Period

Proposal: The Consumer Council recommends that the government legislate a statutory cooling-off period for beauty and fitness service contracts to protect consumer rights.

 

  • Length of the Cooling-off Period

Duration: The Council believes that the cooling-off period should be long enough to allow consumers to fully consider their decisions. Previous proposals of a 3-day or 7-day cooling-off period were deemed too short to effectively safeguard consumer interests.

  • Reactions from the Beauty Industry

Concerns: Some beauty industry operators express concerns about the potential increase in operational costs due to the implementation of a statutory cooling-off period, which could lead to some businesses considering closure. A survey indicated that nearly half of the beauty companies might contemplate shutting down if the statutory cooling-off period is enforced.

 

  • Government Response

Economic Considerations: The government has stated that it needs to carefully assess the current economic environment and the operational challenges faced by businesses when considering the cooling-off period proposals. This caution is particularly relevant in the context of the post-pandemic recovery phase.

  • Increase in Unfair Business Practices

Complaint Data: The Consumer Council's data shows a rise in complaints related to beauty and fitness services in recent years, particularly concerning aggressive sales tactics. This trend has intensified the societal demand for a statutory cooling-off period.

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