More than 30 members of Hong Kong gym chain Physical signed their contracts within three days before its abrupt closure, the city’s consumer watchdog has revealed, amid an ongoing police investigation into possible fraud and nearly HK$130 million (US$16.7) in customer claims.
Consumer Council chief executive Gilly Wong Fung-han said on Sunday that the figure was recorded as of Thursday at noon, while one member who had contacted the watchdog signed contracts worth a total of HK$360,000 just three days before the chain shut down on September 6.
Wong said the member, who joined the fitness chain over a decade ago, was persuaded to enrol in personal training classes for the first time by trainers who said they could receive a bonus if customers signed up for packages and make more money for the company in a struggling economy.
“The consumer was soft-hearted,” Wong told a television news programme, noting that he had signed three packages at HK$120,000 each over three consecutive days, thinking he would not be mistreated after years of being a member.
“Previously, we observed high-pressure sales tactics in the gym and beauty sector. It seems companies were tapping on emotional appeal this time, with some consumers trusting trainers they had been with for a long time,” she said.
