PREPAID cards issued by local companies in Shanghai must have a limit of 5,000 yuan (US$800) under a draft of the city’s amendment to its consumer rights protection law.
Companies must also publicize on a regular basis the total value of cards they have issued, according to the amendment.
This follows complaints that some companies — usually beauty and hair salons and fitness clubs — encourage customers to buy prepaid cards for future use but then suddenly close, leaving clients out of pocket.
Others complaints include that when companies are sold, the new owners refuse to recognize existing prepaid cards.
The draft law states that the value of cards that can be used by any holder must be limited to within 1,000 yuan.
Companies will also be obliged to sign contracts with consumers if they charge them more than 1,000 yuan for any future services. The contract must include the company’s address, contacts, prices, card expiration date and all other details of services and products. (SD-Agencies)
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