Another valuable lesson for Hong Kong consumers
- The sudden closure of the Brilliant Education tutoring firm has left clients and employees out of pocket, a reminder that prepayments should be made with care and that authorities should always be vigilant with such businesses
The sudden closure of a commercial outlet brings more than inconvenience to customers. More often than not, it may also highlight inadequacies in consumer protection and supervision issues involving the authorities.
It is important that the rights of those affected are taken care of. Officials should also follow up any malpractices according to the law and avoid a recurrence of similar incidents by strengthening enforcement and protection for consumers.
Parents and children were understandably outraged after Brilliant Education announced its closure without explanation over the weekend. Established in 1996, the private group ran six centres offering tutoring and other learning activities.
The abrupt shutdown not just inconvenienced many who had signed up for summer and regular courses. It once again put the spotlight on the common practice in which customers are often lured to make hefty advance payments in return for discounts.
According to the guidelines, tuition fees for schools with non-formal curriculum should only be collected monthly.
So far, the Customs and Excise Department and the Consumer Council have received at least 310 and 63 reports respectively, involving payments of up to $2.5 million and $660,000. One case reported involved a loss of more than HK$50,000.
Separately, some 11 tutors have yet to receive more than HK$220,000 in unpaid wages. On Wednesday, a woman was arrested in connection with the case.
The government has set the right tone with a detailed response. It pledged to follow up after one of the branches was found to be unregistered.
But questions were raised whether more proactive action should have been taken. The Education Bureau was said to have checked with the school as soon as it had received inquiries on July 25, but was told that the school was still operating as usual.
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It also said there was publicity urging people to be mindful when paying for lessons. But that message clearly fell on deaf ears.
Given the city’s learning culture and obsession with tuition, it would do well for parents to carefully choose and pay for children’s activities. Just as important are close government supervision and strong enforcement against unscrupulous businesses.
