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Many gyms using 'unfair and illegal' contract terms

Author
NZME,
Publish Date
Fri, 5 Feb 2016, 6:38AM
(iStock)
(iStock)

Many gyms using 'unfair and illegal' contract terms

Author
NZME,
Publish Date
Fri, 5 Feb 2016, 6:38AM

A review of gym contracts has found many contain unfair and illegal terms.

The review, undertaken by Consumer NZ, found terms that were unfairly weighted in the gym's favour that risk breaching the Fair Trading Act.

Consumer NZ chief executive Sue Chetwin said a ban on unfair terms in consumer contracts had been in place since last March. "Our review found the industry has been slow to respond to the law change.

"Gyms often require 30 days' notice if you want to cancel after your minimum membership term ends.

"Some even include a clause saying your cancellation won't take effect until the gym confirms it in writing."

The gym might also require members to use a prescribed form to cancel.

One contract reviewed stated members could cancel only by completing the club's form at the counter, which then needed to be countersigned by the manager before taking effect.

"These terms make it unnecessarily difficult to end a gym membership and we think they're unfair," said Ms Chetwin.

Consumer NZ's review also found contracts that gave the gym broad rights to change its services or location. Others attempted to limit or exclude the gym's liability for problems.

"These terms are likely to be unfair and risk misleading consumers about their rights to reasonable standards of service under the Consumer Guarantees Act," Ms Chetwin said.

Consumer NZ is encouraging gym members to complain if they've been given a contract they believe is unfair.

EXAMPLES OF GYM RULES

+++ "The contract shall continue indefinitely after the minimum term until a request to terminate is made. There is a notice period of 30 days during which time any payments that fall due must be paid." -- Debitsuccess contract for Configure Express.

+++ "Membership may be cancelled by completing the club's cancellation form. This form must be filled out over the counter at the gym and countersigned by the manager before taking effect" -- Snap Fitness.

+++ "The gym reserves the right to change, alter or adapt timetables, facilities or location at any time. Suspension of your membership is at the gym's sole discretion" -- Habit Health & Fitness.

+++ "The member releases the company and its employees, contractors and agents from all liability and responsibility whatsoever, for personal injury, property damage or death however caused including, but not limited to, the negligence of the company or its staff or any other person using the premises" Exodus Health & Fitness Club.

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