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Hong Kong must come to grips with risks of prepaid service contracts
Hong Kong must come to grips with risks of prepaid service contracts

South China Morning Post

time10-05-2025

  • Business
  • South China Morning Post

Hong Kong must come to grips with risks of prepaid service contracts

Feel strongly about these letters, or any other aspects of the news? Share your views by emailing us your Letter to the Editor at [email protected] or filling in this Google form . Submissions should not exceed 400 words, and must include your full name and address, plus a phone number for verification Advertisement The abrupt closure of Alliance Medical Group has once again sparked concerns over consumer protection for prepaid services. While the most high-profile case last year was the shutdown of fitness chain Physical , similar incidents have occurred over the years. In 1998, the sudden liquidation of bakery chain Maria's left customers with worthless prepaid cake coupons , drawing widespread media attention. That same year, video rental chain KPS Video Express forced customers to redeem prepaid coupons within a limited time frame, leading to a frenzy where patrons had to rent four to five films in a single day. The tutoring sector has also seen several cases of prepaid service providers shutting down, including Little Frog Learning Centre last year and Brilliant Education in 2023. Beauty centres , too, have long been notorious for collecting prepaid fees but failing to deliver promised services. These issues tend to surface during economic downturns, highlighting the risks consumers face when they prepay for services. The Consumer Council has consistently advocated for better consumer protection. It published a 2018 study recommending mandatory cooling-off periods to enhance trust in businesses. Advertisement

Two arrested over suspected medical group closure
Two arrested over suspected medical group closure

RTHK

time07-05-2025

  • Business
  • RTHK

Two arrested over suspected medical group closure

Two arrested over suspected medical group closure Tsang Kin-wah says Customs are looking into the company's operations and financial position immediately before its closure. Photo: RTHK Customs on Wednesday said they have arrested two people over the suspected abrupt closure of Alliance Medical Group. The pair, a 61-year-old man and a 31-year-old woman, were the company's director and secretary respectively. Both have been released on bail pending an investigation. Customs said they have so far received 1,686 complaints involving HK$7.2 million worth of prepaid packages. Divisional commander Tsang Kin-wah said authorities are looking into the company's operations and financial position immediately before its suspected closure on May 1. "Just days before its suspected closure, this trader was still selling medical services and accepting prepaid payments from consumers," he said. "That allegedly violated the Trade Descriptions Ordinance by wrongfully accepting payments," he said. "At the time of accepting these payments, the trader had no reasonable grounds to believe they could provide the relevant services within the specified or reasonable time frame." Tsang urged affected customers to come forward, adding that Customs have already been in touch with more than 1,400 complainants. The government has also set up an inter-departmental task force to follow up on the complaints.

Hong Kong customs arrest company secretary over medical group's abrupt closure
Hong Kong customs arrest company secretary over medical group's abrupt closure

South China Morning Post

time07-05-2025

  • Health
  • South China Morning Post

Hong Kong customs arrest company secretary over medical group's abrupt closure

Hong Kong customs has arrested the company secretary of a medical group, whose abrupt closure last week prompted hundreds of complaints from parents who had prepaid for their children's vaccinations, the Post has learned. Advertisement A source close to the investigation said on Wednesday that the company secretary of Alliance Medical Group was detained in connection with the sudden shutdown of all its children's vaccination clinics. A company director was also being investigated, the insider said. The medical group had provided services such as prepaid vaccination packages at its two clinics in Tsim Sha Tsui and Sha Tin. However, the group never officially announced its closure, and its Facebook and Instagram accounts were found to have disappeared on April 30. The closure left at least 2,000 parents in limbo, as they had paid thousands to tens of thousand of Hong Kong dollars in advance for their children's vaccination. Advertisement The highest individual claim related to the closure amounted to HK$23,550 (US$3,038), while the average amount involved in each case was HK$5,720, the Consumer Council said.

Hong Kong to review regulations after abrupt closure of Alliance Medical Group
Hong Kong to review regulations after abrupt closure of Alliance Medical Group

South China Morning Post

time06-05-2025

  • Health
  • South China Morning Post

Hong Kong to review regulations after abrupt closure of Alliance Medical Group

Hong Kong's leader has vowed to better protect consumer rights by studying the possibility of introducing a statutory cooling off period or limiting the maximum duration of prepaid healthcare contracts, after the abrupt closure of a medical group. Advertisement Chief Executive John Lee Ka-chiu on Tuesday also pledged to pursue legal options and hold to account the relevant people behind Alliance Medical Group, whose sudden closure prompted over 1,400 complaints to police and the Customs and Excise Department, and more than 2,000 to the city's consumer watchdog so far. The government set up an interdepartmental task force to handle the matter last week after customers discovered the group's two clinics in Tsim Sha Tsui and Sha Tin had closed without warning. The company offered prepaid vaccination packages for children, among other services. Lee said his administration would review current regulations, in light of the incident. 'Currently, the Private Healthcare Facilities Ordinance regulates the facilities and safety of healthcare services, while prepaid consumption is governed by contracts,' he said ahead of his weekly meeting with advisers in the Executive Council on Tuesday. Advertisement 'The government will examine whether the existing regulations are adequate, particularly for prepaid consumption, and consider various proposals, including the introduction of a statutory cooling off period, limiting the maximum contract period.'

Hong Kong authorities, consumer watchdog receive over 1,900 complaints about medical group's sudden closure
Hong Kong authorities, consumer watchdog receive over 1,900 complaints about medical group's sudden closure

HKFP

time06-05-2025

  • Health
  • HKFP

Hong Kong authorities, consumer watchdog receive over 1,900 complaints about medical group's sudden closure

Hong Kong authorities have received more than 1,300 complaints about the suspected closure of a medical company specialising in health checks and vaccinations, while another 600 complaints have been filed with the city's consumer watchdog. The complaints arose after customers discovered the Alliance Medical Group (AMG) clinics in Tsim Sha Tsui and Sha Tin were shut on Friday without prior notice. Many parents said on social media that they had purchased AMG vaccination packages for their children and were worried they might not be able to complete the inoculation course. As of 5pm on Sunday, the police force and the Customs and Excise Department had received a total of 1,356 reports about the closure, according to local media on Monday. Separately, the Consumer Council recorded 600 complaints involving approximately HK$3.4 million as of 5pm on Sunday, local media also reported. Around 450 of these complaints were related to the clinics' closure, while the rest concerned contract termination, sales methods, and service delays. The medical company's website and YouTube channel were still available on Monday evening, but its Facebook and Instagram accounts were no longer accessible. Local media outlet HK01 reported on Thursday that the sign outside the AMG office in Kwun Tong had been removed.

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