State Governments single out fitness sector for consumer warnings

At a time when many Australians have put 'getting in shape' at the top of their New Year's resolutions list, rather than encouraging people to join fitness clubs, State Governments are warning potential members about the "fine print" in membership contracts.

Following on from advice issued by Victorian Consumer Affairs Minister Michael O'Brien at the beginning of 2013, NSW Minister for Fair Trading Stuart Ayres began the New Year by stating "those facing the battle of the bulge should be encouraged but there are pressures beyond the barbells.

"Last year (NSW) Fair Trading received 431 complaints in relation to health clubs and gyms, a similar figure to 2012.

"Cancellations and cooling off periods were the most common complaint, with about 170 received during both years.

"Don't be muscled in to signing up on the spot rather than shopping around. Visit gyms so you can choose the one that gives the best value for money, has the best facilities, service and location for you.

"Be wary of special offers, promotions and verbal promises as some deals may not be as good as they seem once you read the fine print. Take a gym contract home to read all the terms and conditions before you sign.

"Check the fees listed on the contract are the same as the price that has been quoted to you. Also check the administration fees for setting up or renewing your membership. These are non-refundable even if you cancel the contract during the cooling-off period.

"Ensure the contract has a cooling-off clause that allows you to cancel the membership in writing within a limited period.

"Think about your contract if your circumstances change in the next 12 months. Can you still access the gym if you change jobs, work different hours or move house? Consider a three or six month membership which may be no more expensive than a 12-month one.

"NSW fitness centres are not allowed to accept pre-paid fees in excess of 12 months so you shouldn't be asked to pay for more than a year at a time.

"Just because your membership expires doesn't mean the gym's direct debits stop. You often need to cancel the direct debit separately with the gym, your bank or other financial institution."

"Check your contract to see what is needed to cancel your membership. Even if the contract requires you to cancel in person, it is also advisable to do it in writing. Some gyms charge up to $300 for cancelling a membership.

"If you have a dispute with a gym, check if it is a member of Fitness Australia that will help negotiate your dispute if you submit it to Fitness Australia in writing."

In May 2013, the NSW Department of Fair Trading issued a consumer advisory notice, '10 things you should know about' gym memberships, highlighting that it had (as of May) received 155 enquiries and 159 complaints about gym memberships in 2012, following 426 complaints in 2012, up from 369 in 2011.

Meanwhile, in January 2013 Victorian Consumer Affairs Minister Michael O'Brien urged consumers could take to ensure they are well informed before signing up for fitness club memberships.

29th May 2013 - NSW FAIR TRADING COMMISSIONER REMINDS CONSUMERS OF GYM MEMBERSHIP RIGHTS AND RESPONSIBILITIES 

2nd January 2013 - VICTORIAN CONSUMERS URGED TO UNDERSTAND TERMS AND CONDITIONS OF GYM MEMBERSHIPS

18th June 2009 - TREADMILLS TO WARN OF INJURY RISK TO CHILDREN

8th August 2008 - SMH SLAMS FITNESS FIRST

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