Disguised price increases and difficulty in refunds... How to solve the "stubborn problems" of prepaid consumption?

Illegal card application makes it difficult to get refunds due to price increases in disguise

How to solve the "stubborn problem" of prepaid consumption?

　　□ Our reporter Pan Congwu

　　□ Our correspondent Gu Xueli and Gong Yanchen

　　In early 2023, Mr. Luo, a resident of Urumqi City, Xinjiang Uygur Autonomous Region, spent more than 4,000 yuan to apply for a one-year swimming card at a swimming and fitness center. However, the fitness center did not open for business until September of that year.

　　Because the contract could not be performed, Mr. Luo asked for a refund, but the other party refused.

So he took the fitness center to court.

Finally, with the mediation of the judge, the fitness center refunded Mr. Luo.

　　A recent investigation by a reporter from the "Rule of Law Daily" found that there are not a few consumers who have similar experiences to Mr. Luo. Not only are they delayed in fulfilling contracts, but many businesses also run away. Many consumers have suffered "dumb losses" as a result.

　　In March this year, the Xinjiang Uygur Autonomous Region Market Supervision and Administration Bureau released the top ten consumer complaint hotspots in 2023, and prepaid consumption is one of them.

　　What is the current status of prepaid consumption?

What are the difficulties in safeguarding rights?

How to break this dilemma?

The reporter visited the Urumqi consumer market with questions.

　　There was a balance in the card and the merchant ran away.

　　Prepaid consumption refers to a consumption model in which consumers pay a certain amount of money to operators in advance, and operators provide goods or services to consumers in installments in accordance with the contract within a certain period of time in the future.

For consumers, prepaid consumption has large discounts and offers; for operators, it can not only lock in customers with cards, but also quickly withdraw funds.

　　However, due to frequent problems such as illegal card application, disguised price increases, and difficulty in refunding fees, consumers cannot fall in love with it.

　　"This is an annual membership card for the gym. It is 2,399 yuan after discount and comes with 3 private lessons. This is a recharge card for an Internet cafe near my home. Recharge 100 yuan and get 50 yuan. This is a stored value card for a bathing center. Recharge 3,000 yuan and you get 50 yuan. 500 yuan; this is the electronic membership card of the coffee shop..." On March 12, Mr. Chen, a resident of Urumqi, showed reporters the various prepaid cards he handled.

　　Mr. Chen said that these prepaid cards have discounts for recharging the amount, which is much better than a single consumption.

　　"When you applied for these prepaid cards, did you sign a contract with the merchant?" the reporter asked.

　　"Except for signing the fitness card, I didn't sign anything else." Mr. Chen said that he also suffered losses because of it.

　　"I have a prepaid card from XX hotel. When I applied for the card, I was told that I could enjoy a 15% discount on the membership price. Once when I checked out, the merchant said that I had to make a purchase once a month to enjoy the membership price. But when I applied for the card, the merchant said It was not mentioned at all," Mr Chen said.

　　The reporter randomly visited 8 commercial places involving prepaid consumption and found that except for one bathing club, the other places did not sign a contract when applying for prepaid cards.

　　When a reporter asked "if you can't spend money after applying for a card, can you refund the card?" the staff of this bathing club replied, "The contract states that 'once the card is processed, the card will not be refunded'."

　　It is difficult to prove if the agreement is not clear

　　The reporter visited and found that businesses as large as hotels and supermarkets, as small as barber shops and restaurants, regardless of their size and qualifications, are all jumping into the ranks of prepaid marketing.

However, prepaid cards are easily exploited by unscrupulous merchants due to their characteristics of "pay first, cash later", long consumption cycle, and discontinuous consumption.

　　Among them, some merchants collect advance payments at will, without clear rules and without signing written contracts with consumers. Most of the discounts given are verbal agreements.

Some merchants that have been open for a short time do not even obtain a business license and collect advance payments from consumers.

　　According to Shi Liang, deputy secretary-general of the Secretariat of the Autonomous Region Consumer Rights Protection Committee, the autonomous region’s 12315 platform received a total of 6,974 complaints related to prepaid consumption in 2023, of which more than half of consumers did not have valid evidence.

　　The reporter also found that some operators will operate for a period of time after collecting advance payments from consumers, and then change the company name, legal representative, etc., claiming to consumers that the original advance payment cannot continue to be consumed in the store due to the change of operators.

Some operators change continuously in this way, making it difficult for consumers not only to consume normally, but also to find the original operator.

　　In December 2023, the Xinshi District People's Court of Urumqi accepted a service contract dispute case. The consumer was unable to refund the beauty salon where the prepaid card was issued because it changed owners three times, so he went to court against it.

After a court ruling, the consumer got back part of the advance payment.

　　Recently, the People's Court of Sayibak District in Urumqi has also accepted a number of prepaid consumption rights protection cases, all of which were caused by the inability to use the prepayments after the merchants ran away.

　　Judge Bian Jinrui of the court's filing division (litigation service center) told reporters that the main feature of this type of case is the lack of evidence in the hands of consumers. Either there is no written contract, or the consumption records are not related to the defendant's business entity.

Even if the court makes a winning judgment when the evidence is complete, it may be in trouble because it is difficult to find people and there is no property to enforce, and the consumer's rights to win the lawsuit cannot be realized.

　　Pay with caution and the rules need to be improved

　　"When making prepaid purchases, consumers must choose merchants with larger scales, complete licenses, higher credibility, and good operating conditions. In addition, they must be rational when applying for a card and not be dazzled by discounts," Shi Liang said. Although consumer associations at all levels have frequently released consumer tips and typical cases in recent years, many consumers still find it difficult to resist the temptation of low prices and fall into the trap.

　　Shi Liang called on operators to adhere to the principle of good faith, strengthen industry self-discipline and standardized management, establish clear rules for prepaid card consumption methods, after-sales services, etc., and sign written contracts with consumers to stipulate the rights and obligations of both parties.

　　Bian Jinrui reminded that to prevent the occurrence of prepaid consumption disputes, in addition to operators operating with integrity, consumers should also increase their awareness of prevention, be careful to pay merchants in advance, and remember not to transfer money to private accounts.

Also, be careful to preserve evidence.

　　The reporter learned that the Consumer Rights Protection Law and the "Measures for Penalties for Infringement of Consumer Rights and Interests" both have provisions regulating prepaid consumption. If operators violate the relevant provisions, the market supervision department may impose administrative penalties in accordance with the law. If the circumstances are serious, they may also It can be ordered to suspend business for rectification and the business license can be revoked.

　　However, currently, the only one that specifically regulates prepaid consumer business entities is the "Administrative Measures for Single-Purpose Commercial Prepaid Cards (Trial)" issued by the Ministry of Commerce in 2012 (hereinafter referred to as the "Measures").

　　In this regard, Gu Yu, a lawyer at Beijing Dacheng (Urumqi) Law Firm, believes that the "Measures" were formulated earlier and cannot fully adapt to the current situation. For example, fields such as fitness, beauty, and off-campus training and education are not included in the scope of statutory supervision, and The "Measures" only target corporate legal persons, and there are regulatory blind spots for individual industrial and commercial households, partnerships, etc.

　　Guyu suggested that relevant departments should formulate and improve relevant laws and regulations as soon as possible. Administrative departments and industry associations should also strengthen guidance and regulations, actively innovate consumer rights protection mechanisms, and provide legal protection for consumers' rights and interests.

(Legal Daily)