Queensland Office of Fair Trading targets fitness facilities over contracts

With gyms, aquatic centres, fitness clubs and exercise studios having experienced a challenging 2020 as a result of COVID-19 closures, the Queensland Office of Fair Trading has issued advice that would appear to discourage new members from joining facilities to see through their New Year’s resolutions.

In a statement highlighting consumer rights when joining “a gym or sports club so they don’t get caught out with costly fees and contracts”, Queensland acting Attorney-General Mick de Brenni advised “with New Year’s resolutions underway, more and more Queenslanders sign up to their local gyms and sporting clubs at this time of year.

“Doing your research and knowing your consumer rights will make sure that you get the best deal for your workout.”

Minister de Brenni pointed to the case of a consumer who, on a ‘rollover agreement’, cancelled their membership in writing due to their gym being closed because of COVID-19. The consumer was shocked when three months later, direct debits started coming out of their bank account without their knowledge when the gym re-opened.

He advised “the consumer was told by the gym it had extended the end date of their agreement by three months.

“It is illegal for a gym or fitness provider to continue taking payments without authority once a contract has ended.”

Such advice is issued by consumer and fair trading agencies in several states each year, usually at this time of year, which Fitness Australia sees as unfairly targeting the industry.

Describing the annual advice as an “unfair commentary on the ‘perils’ of gym memberships” and a “predictable event at this time of the year”, Fitness Australia Chief Executive, Barrie Elvish stated “the justification for once again pointing the finger at the fitness sector is, not only unfair but with only 1% of complaints arising from the sector, unwarranted.

“In the past there were a few unscrupulous operators in the sector who persuaded unwitting consumers into signing questionable membership contracts that were heavily weighted in the favour of the gym owner but with very few exceptions those days are long gone.

“Implicit allegations of bad practice in the sector are even more unwarranted in COVID times when gyms and personal trainers, despite being under incredible and unforeseen economic risks, have done everything in their power to look after their members and clients, including suspending memberships, providing free online training programs and negotiating reduced fees.

“It should also be acknowledged that the fitness sector was the first industry in Queensland to develop, in conjunction with the government, a series of COVID-Safe protocols that enabled facilities and programs to reopen safely for the community with ongoing negligible community transmission rates that are the envy of the world.

“Consumers can take comfort in businesses and personal trainers that are members of Fitness Australia as they are held to a Code of Practice that has been developed in conjunction with relevant legal authorities to safeguard consumer rights.

“After all, word of mouth is the strongest advocacy for any gym or personal trainer and it is in the best interests of the entire fitness sector to look after consumers legally just as it does with their physical and mental health.”

The Queensland Office of Fair Trading’s advice is for consumers to be aware of their obligations as well as those of the fitness provider. This includes how they can end the agreement, and any associated cancellation fees.

The agreement must detail applicable fees, like ongoing membership costs, one-off administrative charges, and a fitness provider cannot offer you a pre-paid agreement that has an expiry date of greater than 12 months from the date of purchase.

All membership agreements must come with a 48-hour cooling off period to provide you with peace of mind if you have second thoughts about weighing in.

The fitness provider must also give consumers a copy of the National Fitness Industry Code of Practice (developed by Fitness Australia), to read. The Code sets out mandatory standards across the fitness industry that businesses supplying fitness services must adhere to.

Backing the Queensland Office of Fair Trading’s advice, Paul Kuhneman from Lifestyle Health Club in Springwood noted “the New Year is the perfect time to take on new fitness goals.

“When signing up for a new membership it’s always a good idea to ask questions so you get exactly what you want from your fitness provider to reach your personal best.

“At Lifestyle we made sure that during COVID, people weren’t paying for a service they weren’t using. And if you move house or sustain and injury, be sure to let your gym know so you’re not paying for a service you can’t use, as good gyms will often let you suspend your membership.”

In 2020, the Office of Fair Trading (OFT) received 190 complaints from people about gym and fitness memberships with 65% of those involving members who were charged after their memberships were cancelled.  

In 2020, Australasian Leisure Management analysed the Queensland Office of Fair Trading’s complaints figures and found that of over 15,000 complaints received during 2019 the 150 relating to fitness amounted to just 1% of complaints received by the agency.

For more information go to www.qld.gov.au/fairtrading

Images: Barrie Elvish (middle) and Lifestyle Health Club in Springwood (below)