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Report calls for stronger consumer protections in prepaid consumption

​By Xu Xiaoxuan
0 Comment(s)Print E-mail China.org.cn, March 14, 2024
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Customers shop at Chemist Warehouse in Yuzhong district of southwest China's Chongqing Municipality, Jan. 21, 2024. [Photo/Xinhua]

As World Consumer Rights Day approaches, the China Consumers Association (CCA) unveiled the 2023 Report on Consumer Rights & Interests Protection for Prepaid Consumption on Tuesday. Summarizing the progress made last year, the report presents four recommendations aimed at further safeguarding the legitimate rights and interests of consumers engaged in prepaid consumption.

The report highlights China's advancements in 2023 in legislative, administrative, judicial, and societal protection for consumers in the prepaid consumption sector.

For instance, the people's courts have intensified their efforts in handling cases related to prepaid consumption, spanning areas such as sports and fitness, beauty and hairdressing, and education and training, with consumers winning nearly 90% of these lawsuits.

However, the report acknowledges the increased uncertainties and risks associated with prepaid consumption. Since these transactions require upfront payments, with consumption occurring later, their successful execution largely depends on businesses' creditworthiness and operational status. Therefore, the report underscores the necessity for a stronger national-level approach to protect consumers' rights.

In response, the report puts forward four recommendations. First, it suggests refining legislation related to prepaid consumption and strengthening the burden of proof on service providers. Second, it calls for improved administrative oversight of prepaid transactions and the implementation of credit constraints and penalties. Additionally, the report advocates for strengthening judicial relief efforts and establishing a working mechanism for resolving consumption disputes through litigation and mediation. Lastly, it emphasizes the importance of leveraging the role of the CCA and uniting various societal forces to enhance social co-governance in the prepaid consumption sector.

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