Lawmaker Doreen Kong on Sunday said Hong Kong needs new laws to safeguard consumer rights, after the shuttering of all Physical Fitness gym chain branches.

Two days after Physical Fitness announced they would close down, the Consumer Council said it received 521 complaints regarding the gym, involving more than HK$17 million.

The watchdog noted that the average sum involved was HK$33,998 per person, with the largest claim reaching HK$653,600.

Speaking to RTHK, Kong – who is also a lawyer – said it would be challenging for customers to receive full compensation.

"We need to review the law to see whether we can have better consumer protection laws. Right now, I think the Trade Descriptions Ordinance is not enough," she said.

"The onus of proof actually is very high and it is usually very difficult to get evidence. I think the first thing is that we need to improve our law. Second thing is that the government has to do real actions to improve the business environment."

Local reports said that a new investor will manage the gym chain's Wan Chai branch under the brand name "Healthy", but Kong reminded consumers that the law does not allow a company to transfer contracts without clients' consent.

She reminded consumers that the terms could be altered in a new contract, adding that consumers have the right to refuse a new agreement.