Core Viewpoint - The prepaid consumption model, while beneficial for businesses in terms of cash flow and customer retention, poses significant risks to consumers due to the potential for merchant defaults, leading to a loss of consumer confidence in the market [1][2]. Group 1: Prepaid Consumption Model - The prepaid consumption model is widely used in sectors like fitness, training, and dining, where businesses attract consumers with discounts and convenience [1]. - This model allows businesses to secure customers and improve cash flow, but it leaves consumers vulnerable if merchants fail to deliver services [1][2]. Group 2: Legal and Regulatory Developments - In May, the Supreme People's Court implemented new regulations clarifying the rights and obligations of both consumers and businesses in prepaid consumption disputes, including rules on refunds and liability for defaults [1]. - Despite these regulations, challenges remain in the practical enforcement of consumer rights, such as difficulties in evidence collection and lengthy litigation processes [1]. Group 3: Market Regulation and Consumer Protection - Various local regulatory bodies are exploring ways to enhance the prepaid consumption model while ensuring compliance and consumer protection, such as the integration of third-party platforms and financial institutions to monitor transactions [2]. - Initiatives like "安心消费在北京" aim to provide consumers with guarantees and flexible payment options, promoting a healthier development of prepaid consumption [2]. Group 4: Future Outlook - The core of ensuring consumer confidence in prepaid consumption lies in providing security and reliability, allowing consumers to engage without uncertainty [3]. - With proper regulation, the prepaid model can thrive, benefiting both consumers and businesses by focusing on service quality and product improvement [3].

Core Viewpoint - The recent closure of a gym in Changsha has left many members in distress, raising concerns about the recovery of their prepaid membership fees amid a rising trend of gym closures across the country [1] Industry Overview - The closure rate of commercial gyms in China is projected to reach 10%-14% in 2024, equating to nearly 10,000 gyms exiting the market annually, indicating a significant increase compared to previous years [1] - Not only small gyms are affected, but also large chain gyms, as evidenced by the complete closure of all Beijing locations of the well-known brand Will's Gym in March 2023, leaving many consumers unable to recover their prepaid fees [1] Consumer Concerns - Over 40% of consumers express concerns about gyms going out of business, particularly regarding the risks associated with annual membership cards [8][11] - The average annual spending per member in gyms has shown a decline, with figures reported at 5,486 yuan for gym clubs and 5,460 yuan for fitness studios in 2024 [13] Membership Trends - The scale of gym memberships in China has been decreasing, with a notable drop in penetration rates from 5.4% in 2019 to 4.9% in 2023 [9] - The reasons for not choosing traditional gyms include concerns over the risks associated with annual memberships and negative perceptions of brands due to frequent closure news [10][11] Refund and Consumer Rights - After gym closures, the methods for handling consumer refunds vary, with only 1.3% of cases resulting in full refunds, while 34.99% of cases are reported as not being processed [24] - Consumers are advised to retain membership documents and payment receipts to facilitate potential claims against gyms that fail to honor refunds [27] Brand Closures - Several notable gym brands have faced closures recently, including Zhongjian Fitness and Fanyin Yoga, with significant membership bases and locations across major cities [26]

Core Viewpoint - The introduction of the "安心消费" series by Meituan aims to address the challenges of prepaid consumption, particularly in sectors like education, fitness, and beauty, by providing consumer protection against business closures [1][2]. Group 1: Product Launch and Features - Meituan has launched the "安心消费" series, which includes a compensation mechanism for consumers in case of business closures, enhancing consumer confidence in prepaid services [1][2]. - The series includes customized solutions for various sectors, such as "灵活付、跑路赔" in fitness, allowing consumers to purchase group deals with a "跑路赔" label for added security [2]. - In the education sector, the "安心学" product allows for a pay-per-class model, enabling consumers to pay only for the classes they attend, with a refund option for unused funds [2]. Group 2: Market Impact and Participation - Over 35,000 stores in Beijing have joined the "安心消费" series, with over 50% coverage in the fitness industry and over 40% in sports training [1]. - The "安心学" program has seen participation from over 38,000 educational institutions across more than 270 cities, offering over 64,000 courses [2]. - The implementation of these products has led to significant increases in traffic and engagement for participating brands, with one brand reporting a 185% increase in traffic and a 117% increase in visits [3]. Group 3: Regulatory and Industry Support - The initiative aligns with government efforts to promote healthy development in prepaid consumption and ensure consumer fund safety, with Beijing incorporating it into key tasks for urban development [3]. - The platform aims to leverage technology and data to enhance consumer protection and facilitate the digital transformation of prepaid consumption [3].

Global Hotspots - The recent conflict in the Middle East has resulted in over 58,000 deaths in Gaza, highlighting a profit chain for some Western companies amidst the humanitarian crisis [2] - The BRICS summit in Rio de Janeiro emphasized the growing importance of multilateral cooperation in global governance, positioning BRICS as a key player in uniting the Global South and driving changes in the global governance system [2] Economic Insights - China's GDP grew by 5.3% year-on-year in the first half of 2025, leading among major global economies, with a quarterly breakdown showing 5.4% growth in Q1 and 5.2% in Q2, indicating economic stability [4] - The Yiwu market is experiencing a "shop grabbing war" as merchants compete for space in the new Global Trade Center set to open in October, driven by trends like AI and e-commerce [6] Consumer Behavior - The Supreme People's Court of China has implemented new regulations to address issues related to prepaid consumption, aiming to protect consumers from difficulties such as refund challenges and unfair terms [2]

Core Viewpoint - The rise of prepaid consumption models, while offering convenience and discounts, carries significant risks, particularly in industries like beauty, entertainment, dining, and education, where consumers face issues such as business closures, reduced services, and difficulties in obtaining refunds [2][3][4] Group 1: Consumer Precautions - Consumers are advised to be cautious when selecting merchants for prepaid services, emphasizing the importance of verifying business credentials through official platforms like the National Enterprise Credit Information Publicity System and Tianyancha [2] - It is recommended to make small, rational deposits rather than large investments, aligning spending with actual needs and financial capacity to mitigate the risk of fund immobilization [3] - Consumers should insist on written contracts when purchasing prepaid cards, carefully reviewing terms related to usage, validity, and liability, particularly being wary of clauses that limit consumer rights [3] Group 2: Evidence and Complaint Mechanisms - After acquiring prepaid cards, consumers must retain all relevant documentation, including invoices, contracts, and transaction records, to protect their rights in case of disputes [3] - In the event of a dispute, consumers should first attempt to resolve the issue with the merchant, and if unsuccessful, they can escalate the matter through various channels, including local consumer protection hotlines and legal action [4] - The Maoming Consumer Rights Protection Committee emphasizes the need for businesses to operate legally and transparently, adhering to fair trading principles and avoiding deceptive practices that harm consumer rights [4]

Core Viewpoint - The Supreme People's Court has issued guidelines to implement the "Promotion Law of Private Economy," focusing on the legal handling of consumer disputes and promoting healthy development in the online and platform economy [1] Group 1: Legal Framework and Consumer Protection - The guidelines emphasize the legal adjudication of consumer dispute cases, aiming to protect consumer rights while regulating illegal claims [1] - The introduction of punitive compensation for food and drug violations is intended to deter fraudulent practices and safeguard legitimate business operations [1] - The guidelines also address prepaid consumption disputes, encouraging honest business practices while combating issues like fund misappropriation and unfair terms [1]

Core Viewpoint - The implementation of the Supreme People's Court's interpretation on prepayment consumption disputes starting from May 1, 2025, is significant for protecting the legal rights of consumers and honest operators [1] Group 1: Legal Framework - The interpretation addresses issues such as the validity of "unfair clauses" in prepayment contracts, conditions under which consumers can terminate contracts, and how to calculate refunds for discounted goods or services [1][11] - The interpretation supports consumers' rights to challenge unfair contract terms that prevent them from reclaiming prepaid amounts [8][9] Group 2: Case Summary - A roller skating club offered a promotion where customers could recharge 10,000 yuan to become VIP members, receiving discounts and free equipment [4] - After a child suffered an injury, the mother sought to terminate the contract and reclaim the remaining course fees, but the club initially refused based on a no-refund policy [4][6] - The court mediated a resolution where the club agreed to refund the remaining prepaid amount after deducting fees for the classes attended and compensating for the used equipment [6][9] Group 3: Consumer Rights - Consumers can terminate contracts if unforeseen circumstances significantly affect their ability to fulfill the contract, and courts are expected to support such requests [8][9] - The interpretation clarifies that refunds should be calculated based on the original price of services when the consumer initiates the termination [9] - The court ruled that the mother should compensate for the used equipment instead of returning it, as it could not be reused [9]

Group 1 - Consumer complaints in various regions have highlighted issues such as fraud, false advertising, and prepaid consumption since July 2025 [1] - In Hunan, consumer complaints increased by 23.02% year-on-year, with a total of 20,726 complaints received in the first half of 2025 [2][4] - Quality issues accounted for 30.13% of complaints in Hunan, with price and after-sales service issues following at 15.4% and 14.57% respectively [4] Group 2 - In Hunan, the medical beauty sector saw 213 complaints, primarily due to false advertising and misleading promotional tactics [6] - In Shaanxi, a total of 7,789 complaints were received, with after-sales service and quality issues being the main focus [7][9] - In Guangdong, consumer complaints rose by 30.34% to 538,852, with service-related complaints making up 52.97% of the total [10][12] Group 3 - In Sichuan, 33,824 complaints were received, with prepaid consumption and fraud against the elderly being significant issues [13] - In Tianjin, 4,327 complaints were processed, with after-sales service issues being a major concern [14][15]

Core Points - The article highlights the challenges faced by consumers in prepayment scenarios, particularly in the education and training sector, where businesses often encourage upfront payments with promises of discounts, leading to difficulties in obtaining refunds when services are not delivered as promised [1][2][3] Group 1: Consumer Experience - A parent named Wu Man paid 17,188 yuan for music lessons but faced issues when the training institution suddenly closed, leaving her with 103 unfinished lessons and a complicated refund process [1][2] - The institution initially promised a refund but later provided various excuses for not returning the money, leading Wu Man to seek legal recourse [2][3] Group 2: Legal Framework - The implementation of the Supreme People's Court's interpretation on prepayment disputes grants consumers the right to terminate contracts when service delivery costs increase significantly due to business relocations [3][4] - The interpretation invalidates the common practice of calculating refunds based on original prices rather than discounted rates, which was a prevalent industry norm [7][8] Group 3: Industry Practices - The article discusses the prevalence of "professional closure" tactics among businesses, where they delay refunds, transfer assets, or disappear, complicating consumer claims [3][10] - The training institution involved in Wu Man's case was found to have a complex corporate structure, making it difficult for consumers to pursue claims against shell companies [7][8] Group 4: Regulatory Implications - The new regulations also hold brand franchisors accountable for consumer losses if they mislead consumers regarding their contractual obligations [8][9] - Shopping malls are required to verify the business licenses and qualifications of operators to prevent unlicensed businesses from collecting consumer prepayments [8][9] Group 5: Future Outlook - The article suggests that the rise of online training institutions has complicated the landscape, with many businesses exploiting consumer urgency to secure upfront payments while failing to deliver promised services [10] - The interpretation aims to encourage businesses to prioritize consumer rights and improve service quality, moving away from risky prepayment models [10]

Core Viewpoint - The prepayment consumption model in the social medical service sector faces a trust crisis due to incidents of businesses "running away," prompting a need for solutions to restore consumer confidence and ensure healthy industry development [1][3]. Group 1: Industry Challenges - The reliance on prepayment consumption in the social medical service sector allows consumers to enjoy discounts and convenience while helping businesses secure customers and manage funds [3]. - Recent incidents of businesses closing unexpectedly have led to consumer difficulties in obtaining refunds, exacerbating the trust crisis within the industry [3][4]. Group 2: Proposed Solutions - The "Chengdu Prepayment Protection" platform is set to launch, aiming to build a trust bridge between consumers and businesses through a model of "government-led + professional operation + bank custody" [3][4]. - The platform will implement measures such as online promotion and offline credit identification for trustworthy businesses to enhance consumer trust [4]. Group 3: Financial Support and Risk Management - The platform will allow businesses to use 30%-70% of their funds for daily operations based on a whitelist system, with more flexibility for those with good credit [4]. - In case of business closures, the platform has a service guarantee mechanism to assist with service transfers or refunds, ensuring continuous medical service for consumers [4]. Group 4: Pilot Programs and Regulatory Support - A joint initiative by multiple government departments aims to optimize the business environment and address issues in prepayment consumption, with pilot programs in specific regions focusing on social medical services and other sectors [6]. - The initiative emphasizes proactive measures to prevent issues rather than reactive accountability, aiming to boost consumer confidence and meet medical service demands [6].