Merchants of Misery

The Consumer Council delivered a stinging blow to the local fitness chain, California Fitness, while issuing sweeping condemnation of high-pressure sales tactics which have left consumers fleeced and dismayed. Among 296 complaints lodged against California Fitness in 2015, entailing HK$8.5 million, 22 involved sums of more than HK$100,000.

The increasing prevalence of high pressure sales crooks in Hong Kong has dampened customers’ confidence in retail markets. Figures from the Consumer Council show that customers’ complaints against fitness centers have soared 397 percent, from 116 in 1996 to 577 in 2015. A large proportion of those complaints have to do with hard sells and unreasonable charges.

“When people agree to a small request offered by another person, they are more likely to give the nod to the second bigger request. This is a proven theory in marketing called ‘the foot-in-the-door effect’,” comments Lisa Wan, Assistant Professor of School of Hotel and Tourism Management and Director of Centre for Hospitality and Real Estate Research at The Chinese University of Hong Kong Business School in an interview with China Daily on the pushy sales tactics by sales staff in fitness centers.

“The logic is that accepting a favor from someone makes us feel guilty and creates a feeling that we owe that person a favor in return. To put the theory in context, accepting a present increases the likelihood of taking the sales representatives’ further request, such as signing up membership or forking out for a costly package. They might even bemoan to you, that they haven’t met their sales goal or quota, expecting you to help them out,” adds Prof. Wan.

Some high pressure salesmen, when they see the pitch is failing, often resort to verbal abuse to wear down the target, notes Prof. Wan. For example, a blunt question “Are you poor?”, she says, is often all it takes for the target to lay the money on the table. Physical intimidation is a tactic often seen in fitness centers, adds Prof. Wan, as heavily-built male trainers are deployed to sell personal services to overawed consumers.

Direct confrontation and rejection is frowned upon in Asian culture, adds Prof. Wan, and every citizen is told to behave for the sake of social harmony. “Customers get agitated when they see the salesperson turn angry, impatient or get tougher. In our culture we’re discouraged from rendering others upset, therefore the only way to ease the tension is to comply.”

The amended Trade Descriptions (Unfair Trade Practices) (Amendment) Ordinance that came into effect in 2013 defines unfair trade practices such as false descriptions of services, misleading omissions, aggressive commercial practices and bait and switch advertising, as criminal offenses.

“The judicial procedure in Hong Kong is lengthy and cumbersome. Victims cannot make an appeal against the company unless they present enough solid evidence that there has been a hard sell,” notes Prof. Wan. She referred to a case where a local victim of a timeshare scam waited for eight years before the case was finally decided in her favor. People do not think it is worthwhile to invest both time and energy on it, so they tend to tolerate this.

Insufficient public education also contributes to low awareness of customer rights in Hong Kong, stresses Prof. Wan. She says most people assume that the Consumer Council is responsible for submitting victims’ appeals to the court, but that is not the case. Victims of abusive sales tactics should go to the Customs and Excise Department if they feel they have grounds to appeal a transaction.

Prof. Wan also suggests customers leave their identity and credit cards at home, when they walk into a gym or salon. Take along a friend, she adds. These are strategies that can help any consumer to remain clear headed when the big push begins… Read More (PDF)

Source: China Daily
Date published: 4 May, 2016

Photo: China Daily