Round Table China China stiffens prepaid deal protections
May 8, 2025
A crackdown on prepaid scams in China is reshaping consumer rights, as new regulations from the Supreme Court aim to protect customers from businesses that vanish with their money. The shift comes amidst a surge in prepaid services in beauty and fitness, raising concerns about inadequate contracts. Meanwhile, Gen Z is shaking up the language of love, favoring terms like 'bro' and 'mate' over traditional pet names. Discover how these generational shifts and legal changes are redefining consumer confidence and affection.
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China Cracks Down on Prepaid Scams
- China's Supreme Court issued new rules effective May 1st banning prepaid scams in gyms and salons.
- This marks the end of unsafe business practices like ghosting customers and dodging refunds.
Gym Vanishes Overnight: A Korean Case
- A gym in Korea sold long-term memberships then vanished overnight, causing major losses and lawsuits.
- This incident exemplifies the risks of prepaid services disappearing without refunds.
New Refund Protections for Consumers
- Consumers have new rights to easier refunds if business relocates or changes without consent.
- Unfair contract clauses that block refunds are now invalid, empowering customers to claim their money back.