Issue Date:  -  Wednesday, 9 February 2000

Gym memberships leave some customers breathless

Fair Trading Commissioner Patrick Walker is to write to all Western Australian health clubs and gyms, following consumer complaints that some clubs continue to deduct fees from their bank account after they believed their membership contract had concluded.

"If a club misleads a customer about the period of a contract or the effects of it continuing after the initial agreed period of membership, they may be guilty of an offence" Mr Walker said.

"Any club found guilty of false or misleading representation could be prosecuted" Mr Walker said.

It is not uncommon for some health clubs to sign people up for a specified period of time and direct debit on a monthly basis from the persons credit card or Eftpos account. Many contracts that people sign have a clause that states that people have entered a contract for a specified period and the contract is ongoing until cancelled in writing.

Mr Walker said that if customers are not misled about these conditions, there is nothing illegal about the contracts but often people believe their membership finishes on a particular date and do not see the need to formally cancel the contract.

"The end result is that if people are not prudent and do not check their credit card statements, they will be debited for monthly payments they were not aware of, and for services they did not use," Mr Walker said.

The following is a check list for anyone considering a health club membership:-

If you agree to pay monthly by direct debit, check that the debiting will stop at a certain date
Don’t sign if you are not sure
Don’t pay the full amount up front for long term contracts
There is no cooling off period
If you are not sure you will be able to use the facilities regularly, only sign for a limited period (not 6 or 12 month deals)
Shop around for a deal that best suits your needs. Ask questions about days you can access the facilities, any restricted access, extra charges, crche facilities etc.
If the contract allows for direct debiting after a specified period make sure you keep records of when this falls and notify the health club in writing when you intend to discontinue the contract
Check credit card and Eftpos statements regularly to see that you are not paying for a service that you are not using and do not wish to continue
Mr Walker's letter to all health clubs will contain advice directed towards the management of clubs, with the intention of avoiding the confusion which has left many people exposed.

The Ministry has a telephone advice service set up for the cost of a local call from anywhere in Western Australia. For advice, consumers can call 1300 30 40 54 or send an email to consumer@docep.wa.gov.au.

Media contact
Mike Winchester
(08) 9282 0961
0409 118 982