Hong Kong customs arrest yoga centre director over unfair trade practices
Hong Kong customs arrested a 61-year-old company director of a yoga centre for allegedly accepting payments before abruptly closing, affecting 381 complaints totalling about HK$4.07 million. The case is under investigation.
Hong Kong customs have arrested a 61-year-old male company director of a yoga centre on suspicion of engaging in unfair trade practices by selling services with no intention of supplying them. The arrest followed complaints that the centre suddenly announced the closure of all its branches, leaving customers who had paid for yoga or fitness classes unable to use the services.
Customs said it received reports that the centre continued to accept payments from customers even as it was about to shut down. An investigation was launched immediately. On Friday 2 October, customs officers took enforcement action and arrested the director. The case remains under investigation.
As of 5pm on the same day, customs had received 381 complaints related to the yoga centre, involving service contracts worth about HK$4.07 million. Customs urged affected members of the public to come forward with information.
Under the relevant ordinance, any trader who accepts payment while intending not to supply the product, or intending to supply a product that is materially different from what was paid for, or without reasonable grounds to believe they can supply the product within a specified or reasonable time, commits an offence. Upon conviction, the maximum penalty is a fine of HK$500,000 and five years' imprisonment.
Customs reminded traders to comply with the law and advised consumers to patronise reputable businesses, think carefully before making pre-paid purchases, and keep receipts and contracts as evidence for any future complaints. Members of the public can report suspected violations via the customs 24-hour hotline 182 8080, the dedicated email account [email protected], or the online form at eform.cefs.gov.hk/form/ced002.