Customs investigates closure of fitness and beauty chain Physical

The investigation led to an arrest of two of its directors.

The Hong Kong Customs and Excise Department is investigating the fitness and beauty chain Physical leading to the arrest of two of its directors.

In a recent update, Hong Kong Customs said it has arrested two directors of a "chain fitness and beauty group suspected of wrongly accepting payments when selling fitness and beauty services, in contravention of the Trade Descriptions Ordinance".

Investigations revealed that customs found that the chain group still accepted payments for prepaid services from customers even before the announcement of its business suspension. Customers who had purchased prepaid fitness and beauty services were unable to use the services concerned and did not receive any refunds.

Meanwhile, Consumer Council has already received over 1,000 complaints from customers and former employees amounting to more than $31m in claims, according to local media. 

Customs appealed to consumers of the fitness and beauty chain to contact them immediately. It also said that it would contact complainants for further investigation.

The department reminded consumers to procure services at reputable shops, especially if there is prepayment. 

After purchasing services, consumers should keep important transaction receipts, which can be basic information if a complaint is lodged in the future.