The director of tutoring firm Brilliant Education, which closed without warning last weekend, has been arrested for unfair trade practices following 310 reports from angry parents who said they were owed more than HK$2.51 million.
Pang Tse-tung, 50, was arrested on Wednesday on suspicion of wrongly accepting payments when selling prepaid tutorial programmes, in contravention of the Trade Descriptions Ordinance, according to a Customs and Excise Department statement the same day.
Following an investigation, the department found that multiple branches of the firm were behind on rent, and had accepted advance payments for tutorial programmes knowing that they were unable to continue operating.
No refunds
“Traders should not accept advance payments from consumers if they are uncertain whether the pertinent services can be delivered to consumers within a specific or reasonable time. Consumers are also reminded to procure services at reputable shops and think prudently before making decisions regarding consumption by prepayment,” the statement read.
Brilliant Education abruptly ceased operations at all five of its branches in Siu Sai Wan, Chai Wan, Shau Kei Wan, Tai Koo and Ho Man Tin last Saturday, and failed to arrange refunds for customers, the department said.
The city’s Education Bureau on Saturday confirmed to local media that the company’s Ho Man Tin branch was not registered as stipulated by the law.
As of Wednesday evening, authorities had received 310 complaints from parents about Brilliant Education involving more than HK$2.51 million in programme fees.
Arrangements not made
Speaking at a press conference on Wednesday, Senior Inspector Tsang Hoi-ting of the customs department’s Intellectual Property Investigation Bureau said the education centre was still promoting pre-paid classes as of last month.
“The person in charge did not make appropriate arrangements to follow up on the centre’s closure,” Tsang said, adding that affected parents still had time to file complaints.
One complaint involved a loss of more than HK$50,000, according to the Consumer Council’s chief complaints and advice officer Dragon Chong.
Chong told RTHK on Monday the council was in contact with the responsible individuals to urge them to honour their contractual obligations and arrange refunds.
The maximum penalty upon conviction is a fine of HK$500,000 and imprisonment for five years.
