To exercise in the gym, you need to get a card
For consumption in beauty salons, you need to recharge
Training institutions must pay fees in advance
……
These are the consumption problems that are often encountered in life
There is a unified name
- Prepaid consumption
I got a card, but the store is closed?
Few years
Individual prepaid merchants close their doors and "run away"
Consumers cannot return the money they have recharged
The topic of difficulty in protecting consumer rights
has rushed to the hot search many times, triggering widespread discussions
On March 15, 2024, the "Regulations on the Implementation of the Law of the People's Republic of China on the Protection of Consumer Rights and Interests" (hereinafter referred to as the "Regulations") was officially promulgated and will come into force on July 1, 2024.
Regulate prepaid consumption
It is a key point of the legislation of the "Regulations" this time
What exactly is regulated?
What is the impact on consumers and operators?
Let's take a look
The Regulations have been strengthened
Three obligations of the operator
01Obligation to establish a "written contract".
The Regulations stipulate that business operators shall enter into written contracts with consumers. The contract should mainly contain these matters -
●The specific content of the product or service
●Price or fee
●Advance payment refund method
●Liability for breach of contract
What are the benefits of a written contract?
Written contracts can not only strengthen the constraints on business operators to abide by their commitments, but also reduce the difficulty of proof when consumers protect their rights.
02Strengthen the obligation to "fulfill according to the contract".
The "Regulations" stipulate that business operators shall provide goods or services in accordance with the agreement with consumers, and shall not reduce the quality of goods or services, and shall not arbitrarily increase prices.
What if the operator does not comply with the agreement?
The agreement shall be fulfilled or the advance payment shall be refunded in accordance with the consumer's requirements.
It is worth mentioning that -
For the first time, the Regulations give consumers the right to terminate their contracts.
If the operator reduces quality, cuts corners, shrinks services, etc., then it is not only the balance of the advance payment that needs to be refunded, but also according to the performance of the contract and the breach of contract.
03Clarify the obligation to "inform during the matter".
The Regulations put forward different requirements for the following situations:
●If a business operator has a major business risk, it shall stop collecting advance payments;
●Where proprietors decide to suspend business or relocate service venues, they shall notify consumers in advance, continue to perform their obligations, or refund the balance of the advance payment that has not been consumed.
What if the contract cannot be performed, but not on the subjective intention of the operator?
Even if the operator is not subjectively at fault, it will lead to the failure to perform the contract, or significantly increase the cost of performance for the consumer, and the Regulations also give the consumer the right to terminate the contract.
Violation of prepaid consumption regulations
How to deal with it?
The Regulations set out specific penalties for prepaid consumption:
✍ For violations of the relevant provisions on prepaid consumption, the relevant administrative departments shall order corrections, and may impose warnings, confiscation of illegal gains, and a fine of between 1 and 10 times of the illegal gains, or a fine of between 500,000 yuan and a fine of not more than 500,000 yuan if there are no illegal gains; where the circumstances are serious, order a suspension of business for rectification or revoke business licenses.
✍ For those who run away after the advance fee is collected, they will also be included in the list of the untrustworthy with serious violations in accordance with law.
Regulations on deposits
Corresponding provisions have also been made
Although, the deposit is a guarantee and not an advance payment
But there are also forms and risks of "prepaid".
It is also easy to cause refund disputes
Regarding the issue of deposits, the "Regulations" stipulate as follows:
✍ Proprietors are required to agree with consumers in advance on the methods, procedures, and time limits for returning deposits.
✍ No unreasonable conditions shall be set for the return of the deposit, and those who meet the conditions shall be refunded in a timely manner.
✍ When a consumer breaches the contract, the operator shall deduct the deposit based on the actual loss.
Source: Guangzhou Market Regulation
Editor: Huang Keshu
First Trial: Jiang Hao
Reviewer: Gu Yan
Final review: Yang Hong
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