Hong Kong Proposes Cooling-off Rules for Beauty and Fitness Prepayments: What Businesses Should Review

### Public consultation — not yet law The Hong Kong Government is consulting on targeted changes relating to the Trade Descriptions Ordinance for pre-paid beauty and fitness service contracts. The proposals include a seven-calendar-day cooling-off period, a 14-calendar-day refund period, limits on contract duration, and enhanced investigation powers for suspected wrongly accepting payment. The consultation closes on **31 August 2026**. These are policy proposals only. They have not been enacted and are not current mandatory cooling-off rules. The final scope and thresholds may change after consultation and any subsequent legislative process. ### What is proposed? 1. **Seven-day cooling-off period:** Consumers could cancel a regulated pre-paid contract without giving a reason within seven calendar days. 2. **Refund within 14 days:** Traders would generally have 14 calendar days to make the refund. 3. **Possible monetary threshold:** The Government is consulting on whether regulated contracts should start at **HK$3,000, HK$8,000 or HK$15,000**. No threshold has been selected. 4. **Contract duration and start date:** A regulated contract would have a proposed maximum duration of two years and could not take effect later than three months after signing. 5. **Information and cancellation documents:** Before contracting, traders would provide a written information note and a model cancellation notice. If they fail to do so, the cooling-off period could be extended to a maximum of six months after the contract is entered into. 6. **Refund method and deductions:** Refunds would generally be monetary. Proposed deductions include charges for services already consumed and, for qualifying non-cash payments, administrative fees of up to 2% for a one-off payment or 5% for an instalment payment plan, subject to the detailed conditions in the consultation paper. 7. **Enforcement powers:** The proposal would add the Trade Descriptions Ordinance offence of wrongly accepting payment to Schedule 1 to the Organized and Serious Crimes Ordinance, giving Customs additional investigation and enforcement tools, including property restraint orders through the court. ### Proposed scope and exemptions The targeted rules would cover specified beauty services supplied at beauty parlours and fitness services supplied at fitness centres. The consultation proposes exemptions for certain premises and single-service fitness operations, such as yoga, dance and martial-arts studios, while private healthcare facilities and registered healthcare professionals would not receive a blanket exemption when supplying regulated beauty or fitness services. Hair cutting and styling are outside the proposed beauty-services scope. ### Why businesses should review now Beauty and fitness operators that use prepayments should assess: - contract templates, effective dates and package duration; - how the cooling-off right, cancellation method and possible charges would be explained; - refund liquidity and cash-flow stress under a 14-day timetable; - revenue recognition, deferred income and reconciliation of unused packages; - payment-provider and instalment-plan refund procedures; - sales scripts, incentives and controls against high-pressure or persuasion selling; - systems and records showing contract delivery, notices, cancellations, services consumed and refunds. Businesses and members of the public may submit views to the Commerce and Economic Development Bureau by **31 August 2026**. Operators may wish to compare the three proposed monetary thresholds against their existing package mix and quantify the operational and cash-flow impact before responding. ### Sources - Hong Kong Government press release: https://www.info.gov.hk/gia/general/202606/29/P2026062900356.htm - Commerce and Economic Development Bureau consultation page and consultation paper: https://www.cedb.gov.hk/en/news-and-related-information/consultation-papers.html ### Disclaimer This article provides general information only and does not constitute legal, accounting, tax or other professional advice. The proposals are under consultation and may change. Businesses should review the official consultation paper and obtain appropriate professional advice for their circumstances. ### SEO - Title: Hong Kong Beauty and Fitness Prepayment Consultation: Proposed 7-Day Cooling-off Period - Meta description: Hong Kong is consulting on a seven-day cooling-off period, 14-day refunds and contract limits for certain beauty and fitness prepayments. Responses close 31 August 2026. - Keywords: Hong Kong cooling-off period, beauty prepayment, fitness prepayment, Trade Descriptions Ordinance, consumer protection consultation, prepaid contracts, refund policy