Fitness centres are expected to face a backlash from consumers fed up with strict membership conditions as the Federal Government designs new policies to prevent unfair contracts and a new gym chain prepares to open.
The NSW Office of Fair Trading receives an average of one complaint a day about unfair gym contracts. Problems with ending memberships and obtaining refunds top the grievances.
Consumer advocates hope fitness chain, Virgin Active - which will only have no-contract memberships - will lead to a shake-up of an industry notorious for forcing customers to sign long-term contracts with onerous cancellation fees and conditions.
"Some gyms like to lock you in for a long term, which is something we always counsel people to be careful about," said Choice spokesman Christopher Zinn.
Virgin Active will open its first Australian branch in Frenchs Forest on December 15 and a branch in central Melbourne early next year. It hopes to attract more than 5000 members to each of its 4000-square-metre fitness centres, said managing director Mark Blackman.
The group, which operates more than 170 clubs in Europe and South Africa, will open another 20 sites around the country in the next five years. Monthly membership will cost about $90, in line with other fitness chains.
Gyms that rely on long-term contracts will be under further pressure when Australia's consumer laws are reformed.
The changes, agreed to at the October Council of Australian Governments meeting, will protect consumers nationwide from unfair contracts. Reforms are expected by the end of 2010, said federal Consumer Affairs Minister Chris Bowen.
The fragmented Australian fitness industry is dominated by Fitness First, the world's largest gym chain, which has 85 clubs around the country and more than 350,000 members.
The chain has been repeatedly criticised for signing members up to long-term contracts that are difficult to terminate, including cases where members who are too sick to train or have died have continued to have their accounts debited.
Fitness First member Kirsten Hymers said she was threatened with legal action when she tried to end her membership with the chain. The 22-year-old alleged she was never told her membership was for 12 months when she signed on in June and has refused to pay the chain back outstanding fees.
"They told me I was locked in," she said. "When I first joined, I was really into it. I haven't been for two months now."
Fitness First's national operations manager Michele Harding said Ms Hymers tried to cancel a contract early. Ms Hymers maintains she was never told about the minimum term of the contract.
Ms Harding said members "need [to] just write to us or make a time to see our customer care manager" before they could cancel a membership.
WHAT'S THE BEEF?
Refunds (81).
Charging above quotes or overcharging (26).
Pricing or charges not listed (19).
280 of the 364 complaints in the last year were resolved by the Office of Fair Trading.
Trading Source: NSW Office of Fair Trading.
Areas of contention Contract cancellations and cooling-off periods (134 complaints).
Media Man Australia Profiles
Gyms
Virgin Active
Australian Sports Entertainment
