Customs arrested the sole director of JV Fitness – the parent company of troubled gym franchise California Fitness – yesterday on suspicion of violating the Trade Descriptions Ordinance.
Wong Lun, 63, was arrested while attending an interview at the Customs and Excise Department headquarters in North Point, SCMP reports. Two senior California Fitness executives were arrested on the same grounds on July 12, when all of the company’s fitness centres ceased operations.
The Customs Department said in a statement that it had received complaints from paying California Fitness customers who did not receive the services promised to them.
Under the TDO, if a trader makes a sale knowing that they cannot provide the product as described or at all, or if there is no good reason to believe they are able to supply the product within a specified or reasonable period, they are liable to a fine of HKD500,000 and five years’ imprisonment.
On July 12, all JV Fitness centres, including California Fitness, mYoga, and Leap Fitness Centre ceased operations without prior notice.
Customers who had paid for gym classes or memberships were told they would not receive refunds, with some complaining they lost up to HKD14,000 in pre-paid fees.
Notices posted at the fitness centres attributed the closures to a court-ordered freeze on the company’s operating capital, which was ordered as part of a winding-up petition filed by former JV Fitness director Wong Ping-kuen, Wong Lun’s brother.
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California Fitness ceases operations at all locations amidst financial troubles
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