Entering China
Running away with money is a major pain point for prepaid consumption. This has caused gyms, barbershops and other industries to face a certain crisis of trust, and many consumers are afraid or unwilling to apply for membership cards.
In 2024, Shanghai Changning Notary Office will give an innovative solution – “notarization and withdrawal” prepaid fund supervision platform. On this platform, the prepaid funds paid by consumers will be supervised by a notary public, and after the merchant provides the agreed services, they will be transferred to the merchant in the form of monthly settlement, so as to ensure the safety of the prepaid funds to the greatest extent. Since the platform was launched for more than half a year, it has been connected to more than 10 merchants and supervised more than 300 prepaid contracts, which have been affirmed by consumers.
From haircut cards and movie cards worth a few hundred yuan to training cards and beauty cards worth tens of thousands of yuan, many people are no strangers to prepaid consumption. Consumers often want to enjoy discounts and other benefits in the form of stored value, while operators expect to recoup funds as soon as possible through advance payments, while better attracting consumers and reducing operating costs. However, the business model, which could have achieved a win-win situation, has been criticized because some unscrupulous merchants have run away after collecting advance payments. Finding a way to solve this crux of the problem will help restore consumer confidence and maintain market order.
The implementation of “notarized deposits” for advance payments has choked the “seven inches” of unscrupulous merchants. If the merchant fails to provide the services agreed in the contract, it cannot use the prepaid funds, and naturally cannot run away with the money. Even if the merchant closes down due to poor management, the advance payment cannot be misappropriated, and the consumer can claim back part of the money on a pro rata basis. Through “notarization and withdrawal”, consumers can also complete electronic signing, paid notarization and deposit, and blockchain evidence storage in key links of contract performance online, and the competent authorities can conduct online supervision and online mediation and arbitration in real time through the platform.
Practice has proved that “notarization and withdrawal” can not only effectively control the chaos of prepaid consumer infringement and purify the industry atmosphere, but also force businesses to operate in good faith and win market competition with high-quality services. The improvement of consumer confidence will also bring more opportunities to businesses that operate in good faith, thereby forming a virtuous circle of supply and consumption, and better stimulating market vitality.
Focusing on consumers’ urgency and expectations, there may be more such governance innovations. Relevant departments should continue to improve rules and regulations, strengthen technical support, improve service levels, and actively respond to new problems and new phenomena in the field of consumption. At the same time, it is necessary to increase publicity and popularization, guide consumers to establish a correct concept of consumption, better identify potential risks in prepaid consumption and other formats, reasonably arrange personal expenditures, and protect their own rights and interests in accordance with the law.
