The Supreme People's Court's judicial interpretation on civil disputes involving prepaid consumption took effect on May 1, 2025. It directly addresses disputes in consumer service sectors such as beauty services, hairdressing, and fitness, where goods or services are provided repeatedly or continuously after advance payment. Beauty salon owners do not need to become legal experts, but they do need to thoroughly review their member top-ups, service packages, refund procedures, and performance records.
Current Update
Announcement date: March 14, 2025, at a press conference. Effective date: May 1, 2025. Applicable area: Nationwide. Current status: Judicial interpretation now in force. Main official sources: The Supreme People's Court press conference and the Gazette of the Supreme People's Court webpage.
Key Changes and Rules
At its press conference, the Supreme People's Court explained that the interpretation applies to disputes arising when businesses collect advance payments and then provide goods or services to consumers repeatedly or continuously in consumer sectors including retail, accommodation, food and beverage services, fitness, transportation, hairdressing, beauty services, training, eldercare, and tourism. The press conference also stated that the interpretation regulates unfair standard terms such as refusing to refund collected payments, refusing to replace lost cards, and restricting card transfers. It also sets out rules concerning contract termination, the return of advance payments, and related matters.
Practical Impact on Beauty Salon Operations
When beauty salons accept member top-ups, matters such as contract terms, service items, validity periods, complimentary benefits, changes involving the salon location, balance inquiries, and refund procedures cannot rely solely on verbal explanations. After collecting payment, a salon should provide services as agreed. It should not use unilateral statements such as “no refunds under any circumstances” or “the salon reserves the right of final interpretation” as substitutes for contracts and actual performance records.
Which Salons Should Pay Particular Attention?
Priority reviews should be conducted by salons currently selling stored-value cards, treatment-course cards, annual memberships, or session-based cards, as well as salons that have recently relocated, experienced employee departures, changed service offerings, suspended services, or faced refund disputes. New salons planning to use member top-ups to ease cash-flow pressure should also first carefully assess their service capacity and the limits of their performance obligations.
What Should Be Reviewed Now?
- Whether member top-up contracts clearly state the services provided, fees, validity period, and applicable salon locations.
- Whether customers can check their balances, remaining sessions, services already provided, and complimentary benefits.
- Whether refund processing considers statutory rights, contract terms, service records, and any breach by the salon.
- Whether practical notification and resolution procedures are in place for relocation, business suspension, or changes to service offerings.
Which Records Should Salons Keep in Their Systems?
Completing a top-up transaction is not the end of the process; it is the beginning of contract performance. Beauty salons should retain contracts or confirmation records, proof of payment, records of sessions deducted, product usage, customer signatures or online confirmations, balance inquiry records, and refund communications. When an employee leaves, a consultant is replaced, or a salon relocates, these records can help the salon demonstrate which services have already been provided. They can also help customers verify their remaining benefits, reducing disputes in which each party gives a different account of what happened.
What Conclusions Should Not Be Drawn at This Stage?
Do not simply state that “all top-ups are refundable within seven days without reason,” and do not interpret the judicial interpretation as prohibiting salons from offering prepaid services. Specific disputes must still be assessed in light of the contract, performance records, the services actually received after the consumer made payment, and the conditions governing the application of the judicial interpretation. Professional advice should be sought when necessary.
Next Operational Actions
Start by reviewing the membership cards and package cards currently on sale rather than attempting to revisit all historical transactions at once. For each type of card, confirm at least three points: whether the benefits presented to customers at the time of purchase match the system records, whether employees' explanations are consistent with the contract, and whether there is a clear procedure for refunds or service suspensions. Any matter that currently depends solely on “the owner's verbal explanation” should be converted into a written record that can be viewed and verified. If the rules for older card products are unclear, the salon should first stop expanding their sales and then arrange to verify customers' benefits. Salon managers should also conduct regular spot checks of balances, session deductions, and complimentary benefits to prevent discrepancies between system records and customers' understanding. When customers raise questions, communication should be based on records and contracts.
Related Operational Guides, Tools, and Templates
Salons can begin by reading What Should Beauty Salons Consider in Member Top-Up and Service Contracts? to clarify contractual and refund boundaries. They can then use What Should Beauty Salons Consider Regarding Member Top-Ups and Prepaid Consumption? to review compliance risks. If a dispute has already arisen, salons should retain communication and service records with reference to How Should Beauty Salons Handle Customer Complaints? For day-to-day member relations, see How Can a Beauty Salon Establish Effective Membership Management?
Official Sources
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