Abstract:Prepaid consumption, characterized by consumers paying first while operators continuously redeem goods or services afterwards, raises some special issues on consumer protection. The various consumer protection mechanisms established through the judicial interpretation of the Supreme People’s Court regarding the application of law in the trial of prepaid consumption cases have clear practical relevance, but they also have obvious limitations. Operators can obtain long-term unsecured credit from numerous consumers, which is an essential characteristic distinguishing prepaid consumption from traditional consumption patterns and also the root cause of disputes in prepaid consumption. Forcing operators to provide unified performance fund guarantees to consumers according to the concept of prevention in advance is the necessary condition to curbing operators’ dishonest behavior and ensuring the effectiveness of various post-consumer protection remedies. To incentivize and protect consumers’ credit-granting behavior, it is crucial to grant consumers, in the context of service consumption, the right to terminate the contract at any time and impose certain disclosure obligations on operators. To strengthen consumer expectations, optimize the consumption environment, and boost consumption, it is necessary to enact a prepaid consumption administration law with systematic consumer protection functions.

Keywords: Prepaid Consumption; Consumer Protection; Prepaid Card; Withdrawal Right; Right to Terminate the Contract at Any Time

 

Author:Zhu Guangxin, professor Law School of the University of CASS; research fellow, CASS Institute of Law;

Source:6 (2025) Tribune of Political Science and Law