Hong Kong Fitness Chain Directors Arrested for Unfair Trade Practices Amid Business Suspension

Hong Kong Customs arrests two directors of chain fitness and beauty group suspected of unfair trade practices in sale of services

In response to the sudden announcement of the temporary business suspension by a chain fitness and beauty group on September 6, Hong Kong Customs and the Police have set up an interdepartmental dedicated investigation team to conduct an intensive investigation into offences under the Trade Descriptions Ordinance (TDO) regarding unfair trade practices and whether other criminal offences are involved respectively.

Hong Kong Customs yesterday (September 10) and today (September 11) arrested two directors of the chain fitness and beauty group suspected of wrongly accepting payments when selling fitness and beauty services, in contravention of the TDO.

Upon receiving information alleging that the chain fitness and beauty group failed to provide prepaid fitness and beauty services purchased by customers, Customs immediately established a dedicated team concerning the case and launched investigations. Customs found that the chain group still accepted payments for prepaid services from customers even before the announcement of its business suspension. Customers who had purchased prepaid fitness and beauty services were unable to use the services concerned and did not receive any refunds.

After a follow-up investigation, Customs officers conducted enforcement operations for the two consecutive days and arrested a male and a female director of the fitness and beauty group, aged 67 and 68 respectively.

An investigation is ongoing.

Customs has been paying close attention to the case and called on members of the public affected to provide information. As of noon today, Customs had received a total of 900 reports regarding the fitness and beauty group, involving fitness and beauty service contracts amounting to about $39 million.

Customs reminds traders to comply with the requirements of the TDO. Consumers are also reminded to procure services at reputable shops and think prudently before making consumption decisions with prepayments. After purchasing services, they should keep the relevant records, such as transaction receipts and contracts, which can become basic information in case a complaint is lodged in the future.

Under the TDO, any trader commits an offence if at the time of acceptance of payment, the trader intends not to supply the product or intends to supply a materially different product, or there are no reasonable grounds for believing that 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.

​

Members of the public may report any suspected violations of the TDO to Customs' 24-hour hotline 2545 6182 or its dedicated crime-reporting email account (crimereport@customs.gov.hk) or online form (eform.cefs.gov.hk/form/ced002).

Source: AI-generated images

Employers, contractors and employees should be aware of electrical safety at work during rainstorm

As the rainstorm warning has been issued by the Hong Kong Observatory, the Labour Department (LD) reminds employers and contractors that they should adopt necessary work arrangements and take suitable safety measures to protect the safety of their employees when they are carrying out electrical work or handling electrical plant.

A spokesman for the LD said today (September 17) that employers and contractors should avoid assigning employees to carry out electrical work (like electric arc welding work) or handle electrical plant at places affected by rainstorms, and should refer to the "Code of Practice in Times of Adverse Weather and 'Extreme Conditions'" and the "Guide on Safety at Work in times of Inclement Weather" issued by the LD.

Even if electrical work is carried out or electrical plant is handled at places not affected by the rainstorm, suitable safety measures must still be adopted to prevent electric shock as the air would be more humid. Such measures include:

(i) Ensure that all live parts of an electrical installation are isolated from the power supply source and rendered dead, and the isolation from the power supply source must be maintained as long as electrical work is being carried out;

(ii) Before carrying out any electrical work or handling any electrical plant, cut off and lock out the power supply source, then test the circuit concerned to confirm it is dead and display suitable warning notices, and issue a work permit thereafter;

(iii) Ensure that protective devices (such as suitable and adequate fuses and circuit breakers) for the electrical installations or electrical plant have been installed and maintained in good working order, and portable electric tools must be double-insulated or properly earthed;

(iv) Provide suitable personal protective equipment such as insulating gloves and insulating mats for employees; and

(v) If live electrical work is unavoidable, a comprehensive risk assessment should be conducted by a competent person and the appropriate safety precautions should be taken to remove or properly control the electrical hazards involved before such work can proceed.

In addition, employees should co-operate with the employer or contractor to follow the safety instructions and use the safety equipment provided.

The LD has published guidebooks and leaflets on electrical work safety. These safety publications are available free from divisional offices of the department or can be downloaded from its website (www.labour.gov.hk/eng/public/content2_8.htm).

Should there be any questions about occupational safety and health matters, please contact the Occupational Safety Officer of the LD at 2559 2297.

Source: AI-generated images