Customs Police arrest one director of PHYSICAL Fitness & Beauty

The PHYSICAL Fitness & Beauty unexpectedly announced a temporary closure of all its outlets last Friday (Sept. 6).

The Government of the Hong Kong Special Administrative Region has expressed significant concern and established a multi-departmental task force to follow up on the matter. Hong Kong Customs and Excise Department and the Police have temporarily arrested Lu Yiqiang, a male director of PHYSICAL Fitness & Beauty.

As of yesterday (Sept. 10) at 4 p.m., Customs and Excise Department and the Police had received 733 and 19 related reports, respectively. By 6 p.m., the Consumer Council had received a total of 1,725 related complaints, involving nearly HK$60 million. The average case involved around HK$34,700, with the highest individual case amounting to approximately HK$1.82 million, and the lowest at HK$99.

The chief executive of the Consumer Council, Gilly Wong, stated that the highest amount involved a lady who signed a 10-year membership in 2016, set to commence in 2026; she signed another membership this year, starting in 2037.

The membership fees only amounted to tens of thousands of dollars; the larger sums were attributed to personal training sessions, including boxing, stretching, and weightlifting. This lady purchased over 1,900 classes totaling about HK$1.8 million, some of which have not yet started and are valid until 2050.

Regarding the case involving HK$99, Wong explained that as it involves monthly credit card payments, the bank stated that suspension of payments could only occur with the merchant's consent. The complainant is currently unable to contact the merchant, describing it as a "chicken and egg problem."

In light of this, Wong reminded consumers that prepaid consumption carries risks. Sales personnel in the fitness and beauty industry may aggressively promote their services, and sometimes consumers might sign large contracts on impulse without fully utilizing the services. If consumers do not wish to purchase services, they should firmly refuse.

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