ACCC warns fitness businesses about the term 'No Contracts'

The Australian Competition and Consumer Commission (ACCC) has advised Fitness Australia that use of the term 'No Contracts' in relation to fitness centre memberships may be in contravention of sections 18 and 29 (l) (m) of Australian Consumer Law.

Section 18 prohibits misleading and deceptive conduct, or conduct that is likely to mislead or deceive. Section 29 (l)(m) prohibits a person from making a false or misleading representation concerning the existence of any condition, warranty or right.

It is the position of the ACCC that the term 'No Contracts' can only be applied if no condition is attached to a membership and members can terminate at any time without penalties or further requirements. This is distinct from the commonly applied membership condition which stipulates that a membership cancellation requires a minimum notice period of up to 30 days.

The ACCC has indicated that use of the term 'No minimum term membership' is not misleading to the consumer and is therefore compliant. Fitness businesses are therefore strongly advised to review all current marketing and promotional language to ensure compliance with section 18 and 29 of Australian Consumer Law.

For more information please contact Fitness Australia Manager of Business Services Joel Perricone on 0431 334 931, E: joel.perricone@fitness.org.au

Click here for background information on the Fitness Australia website.

31st October 2013 - ACCC TO AUDIT FITNESS FRANCHISES

26th August 2010 - FITNESS FIRST PROVIDES ACCC WITH ‘SINGLE PRICE’ UNDERTAKING