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Key Points
- 1. The government proposes a mandatory 7-day cooling-off period for beauty and fitness prepaid services, with public consultation ending late August 2026.
- 2. The industry advocates for "two-phase legislation," urging a 12-to-18-month observation period after implementing the cooling-off rule before further restrictions.
- 3. UBHIU Managing President Alan Wong notes the $15,000 threshold is too low, warning that frequent refund fluctuations will threaten salons' operational cash flow.
- 4. UBHIU and IQA jointly submitted 6 optimization proposals, including raising the cancellation fee cap to 200% and establishing anti-abuse mechanisms.
- 5. Legislative Council Member Shiu Ka-fai supports two-phase legislation, agreeing that regulation must balance consumer rights with merchant sustainability.
Summary
The Hong Kong government proposes a 7-day cooling-off period for beauty and fitness services. The industry advocates two-phase legislation and 6 optimizations to protect business cash flow.
Beauty Industry Pre-Payment Cooling-Off Legislation | Sing Tao Daily Interviews Industry Leaders on Two-Phase Legislation and 6 Key Recommendations
★ Key Highlights
- Public Consultation Closing Soon: The government proposes a 7-day statutory cooling-off period for beauty and fitness pre-payment contracts. Consultation ends August 2026.
- "Two-Phase Legislation" Proposal: The industry supports cooling-off in principle but advocates for implementing the 7-day period first, with a 12-18 month review period — opposing a "one-size-fits-all" approach across beauty and fitness.
- Impact on SMEs: UBHIU Executive President Lawrance Wong notes the $15,000 contract threshold is too low. Beauty equipment investments often cost $300,000–$400,000 HKD, and refund fluctuations could destabilize cash flow.
- 6 Key Recommendations Submitted: UBHIU and IQA jointly submitted a consultation paper with 6 optimization proposals, receiving public support from Legislative Council Member Shiu Ka-fai for the "two-phase legislation" approach.
The Hong Kong government is conducting a public consultation on amendments to the Trade Descriptions Ordinance, proposing a 7-day statutory cooling-off period for pre-payment contracts in the beauty and fitness industries. The consultation closes at the end of August 2026. On August 20, 2026, Sing Tao Daily's "Daily Magazine" published an in-depth feature titled "Regulating Beauty Industry Sales: Advocating 'Two-Phase Legislation' — Easy First, Hard Later," featuring interviews with key industry representatives.
Meanwhile, UBHIU and IQA have jointly submitted a public consultation paper outlining 6 key optimization recommendations. FOAMMALL, as a cross-border industry connectivity platform, has compiled and republished this summary to help platform merchants stay informed on the latest regulatory developments and compliance guidelines.
■ "Two-Phase Legislation": Easy First, Hard Later & Threshold Analysis
1. The "Two-Phase Legislation" Concept
Phase One: Implement the 7-day statutory cooling-off period, 14-day refund period, and operational details.
Phase Two: After 12–18 months of implementation, review effectiveness based on real data before considering additional restrictions such as a 2-year contract cap.
"Introducing a cooling-off period is like prescribing a 'wonder drug' — but if the first dose already improves the industry ecosystem, we shouldn't over-regulate business operations." — Yip Sai-hung, Founding Chairman of the Hong Kong Beauty Industry Association
2. Lawrance Wong: $15,000 Threshold Too Low for SMEs
UBHIU Executive President Lawrance Wong pointed out that the $15,000 contract threshold remains too low for small and medium-sized beauty salons. Beauty salons often invest $300,000–$400,000 HKD in professional equipment, and fixed costs must be recovered through pre-paid packages. If 10 out of 30 clients suddenly request refunds during the cooling-off period, the salon not only loses service costs but also bears bank processing fees, leading to unstable cash flow.
"There are many dedicated business owners in our industry. Frequent refund variables may discourage them about the future of their businesses," he emphasized.
■ UBHIU × IQA Joint Submission: 6 Key Recommendations
The joint consultation paper submitted by UBHIU and IQA, with co-signature support from LBEDU Luster Beauty International Education & Training Academy and personally signed by UBHIU Executive President Lawrance Wong, outlines the following 6 key optimization directions:
1. Increase Deduction Cap to 200%
The 150% cap, calculated on a half-price package, equates to only 75% of the regular price, insufficient to cover basic operational and service costs.
2. Oppose Inclusion in Serious Offenses Ordinance
The existing Section 13I, with penalties of up to $500,000 and 5 years imprisonment, already provides sufficient deterrent power without the need for over-regulation.
3. "Same Service" Ban Definition Too Vague
Beauty services are highly personalized, making it extremely difficult for frontline staff to accurately determine compliance. No other region globally has such legal precedent.
4. Flexibility in Cooling-Off and Refund Periods
Recommend adding force majeure exception clauses and adjusting the refund period to 14 working days.
5. Addressing SME Survival Impact
Recommend exempting small-value pre-payments, establishing a 48-month transition period, and including a grandfather clause to exempt existing contracts.
6. Anti-Abuse Mechanism
Recommend establishing a malicious cancellation reporting mechanism, limiting consumers to no more than 2 cancellations within a 6-month period.
■ Legislative Council Member Shiu Ka-fai Expresses Support
Legislative Council Member Shiu Ka-fai publicly expressed strong support for the "two-phase legislation" approach, stating that implementing the cooling-off period first and then reviewing its effectiveness is a pragmatic and balanced approach. Regarding the industry's suggestion to include a simple reason field when exercising cancellation rights, he agreed: "Without proper records, there's a risk that all cancellation cases could be wrongly attributed to sales tactics, which would be unfair to merchants."
■ FOAMMALL Summary
From the Sing Tao Daily interview feature to the UBHIU × IQA joint consultation paper, the industry is not simply "opposing regulation" but rather taking a pragmatic and professional approach to propose optimization recommendations. The goal is to strike a balance between consumer rights protection and sustainable industry development. FOAMMALL, as a cross-border industry connectivity platform serving Mainland China, Hong Kong, and Macau, will continue to monitor legislative developments and provide platform merchants with the latest regulatory interpretations and compliance guidance.
Stay Informed on Beauty Industry Regulations & Business Insights
Follow FOAMMALL for the latest compliance guidelines, market trends, and professional training information for Hong Kong and the Greater Bay Area beauty industry!
● Source: Sing Tao Daily "Daily Magazine" — August 20, 2026 Feature Report (Reporter: Lam Ka-hei)
● Consultation Paper Source: UBHIU × IQA Joint Consultation Paper on the Trade Descriptions Ordinance (July 25, 2026, signed by Lawrance Wong, co-signed by LBEDU)
● Information Compiled by: FOAMMALL
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