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Legality of gym membership practice
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Was on FB Saturday and a link came up for a gym around the corner where they were sprucing a 'free' 6 week training course where you get 3 training session per week, body composition scanning, nutritional guidance amongst other things. It was 'open to the first 20 sign ups' and 'spots were filling fast'. Even had the typical Ends January 12. It said it was 'free' because in return they just want solid testimonials. Reading later I saw some FB post saying it was great and that they would be receiving their refund per the promotion.

I was thinking of doing with someone I know and after enquiring about the offer they said no problems come on in for the initial consult. Anyway so I sent the other party along as I could not make tonight. Suspected the initial sign up and refund aspect. Get a call towards the end of their consult saying the cost was $70 per week but no mention of the refund. The $70 covers the training and that in the physical paperwork it says 'you can divorce us after 6 weeks'. I suspected it would be one of these things where you need to cancel.

Anyway she was also asked to fill in details on an ipad and when she asked now what the guy scrolled through 'quite a bit of text' and said 'sign here'. When leaving she asked for a copy of the paper form and he said don't worry about it you can collect that on Saturday when you come for the shopping list (nutrition related).

Upon getting home she receives two emails. One from a debit company and the other from the gym saying thanks for signing up, then has her digital signature under a short summary saying she has committed to an open-ended $70 per week plan for a minimum term of 8 months totally $2,450. There is a 48 hour cooling off period.

Technically I'm not sure that they have broken any laws as the form she signed made reference to 'divorcing after 6 weeks'. I haven't read anything about people having problems cancelling after 6 weeks. I'm wondering whether this is simply a case of being somewhat deceptive/unethical or whether such practice may be illegal?

Ordinarily I don't particularly mind paying for the 6 weeks (it's a supplementary card) if I thought it would get results but the manner in which they have gone about it makes me pretty certain to can it. She asked about whether she can pay up front and they guy said something along the lines that it's better to pay each week.

Buyer beware or something that can be reported to an ombudsman of sorts? This is in Oz but if such tactics can be considered illegal in North America / UK etc then I might follow it up further.
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Re: Legality of gym membership practice [mv2005] [ In reply to ]
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My guess would be that it's not illegal and you are agreeing to all their terms when you sign the forms. But it also seems very much that they are looking to trap you into a regular payment plan for services they know many will not fully utilise. Personally I find those kinds of practices very off-putting and would avoid. It may be you can take advantage of it and cancel after 6 weeks, but expect huge push-back from them at the least.
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Re: Legality of gym membership practice [mv2005] [ In reply to ]
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I won't comment on this specific case, but in my experience in general, many gyms I've dealt with in Canada and the USA are notoriously shady. They seem to take the Hotel California approach, "You can check out any time you like, But you can never leave!". The free / cheap promos are often fronts for long term contracts at full cost - and it was all written in that long, fine print agreement that you did not read carefully enough. They'll continue to bill your credit card of bank account (if you gave them that) until you've jumped through loads of hoops.

Remember - It's important to be comfortable in your own skin... because it turns out society frowns on wearing other people's
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Re: Legality of gym membership practice [Guffaw] [ In reply to ]
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Most gyms are in the membership selling business not the fitness business.
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Re: Legality of gym membership practice [Guffaw] [ In reply to ]
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Suspected as much.

I’ll call local consumer protection tomorrow about the bold print 48 hr cooling off period and how difficult that should be to inact.

Then she’ll need to go. Though I’m the primary cardholder I suspect that technically it’s her contract to cancel.

Thanks
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Re: Legality of gym membership practice [mv2005] [ In reply to ]
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"What's your claim?" - Ben Gravy
"Your best work is the work you're excited about" - Rick Rubin
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Re: Legality of gym membership practice [ThisIsIt] [ In reply to ]
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ThisIsIt wrote:
Most gyms are in the membership selling business not the fitness business.

+1
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Re: Legality of gym membership practice [mv2005] [ In reply to ]
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In Oz the regulation of the sale of services like gym memberships is (mostly) state based.
In NSW it is the Fair Trading Commission - there are similar bodies in other states.

The law is a mixture of state and federal: The Trade Practices Act is federal and the guts of it is in s52: "(1) A corporation shall not, in trade or commerce, engage in conduct that is misleading or deceptive."

Court interpretations have been pretty consumer friendly; the corporation can be found in breach if any average fool is likely to be misled or deceived - it is no defence to say a smart or prudent consumer would not be. Thus, having signed a contract in the ambiguous circumstances you describe is not definitive - it can be set aside if induced by misleading conduct.

Fair Trading wants you to make reasonable attempts to resolve any dispute directly, but that, too, is a fairly low bar for the consumer.

From here, document every interaction with the gym (including contemporaneous notes of any discussion). Lodge a complaint with Fair Trading as soon as it is apparent that you are not going to get satisfaction. That is a pretty simple process, and doesn't require much detail - they are used to assisting.... average fools.

Once Fair Trading is involved the gym will likely fold pretty quickly. If they do not, the likely next step is to be referred for arbitration - in itself a pretty pro-consumer process.

Mostly, you/she need to show that you'll make a fuss that is not worth their time to resist.
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Re: Legality of gym membership practice [Bone Idol] [ In reply to ]
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By all accounts it looks like being a good outcome.

Basically told her to blame me, that I was under the impression what she was walking into was something rather different to what she walked out with, and that having been burnt trying to exit previous long term contracts was trigger shy and insisted she take the apparent cooling off 'out'.

Guy initially claimed it was a typo and should have been 8 weeks, not months, though that doesn't align with the total of $2,450. Anyway after still refusing he offered a lump sum upfront payment. I told her if she really thought it would work I'd pay it, but by this stage the gloss had worn off so wrote her a polite 'exit' email to submit so that we had something in writing saying they agreed it would terminate and that the card would not be charged. They asked for the nutrition book to be returned.

When dropping it off he said he'd deleted her details so she pressed him on it. He showed her the screen and deleted profile. It would take a game business to continue a ruse to that extent but I'll watch the statement over the next week.

Thanks for the local info.

Not just your average fool!
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Re: Legality of gym membership practice [mv2005] [ In reply to ]
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BTW: If you have the opportunity to watch the "Retro Fitness" episode of Undercover Boss, I highly recommend it

I'm sure it's on Hulu or something

"What's your claim?" - Ben Gravy
"Your best work is the work you're excited about" - Rick Rubin
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Re: Legality of gym membership practice [RandMart] [ In reply to ]
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RandMart wrote:
BTW: If you have the opportunity to watch the "Retro Fitness" episode of Undercover Boss, I highly recommend it

I'm sure it's on Hulu or something

Jaqueline? Lol
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Re: Legality of gym membership practice [mv2005] [ In reply to ]
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You know it! You must be a fan!

They filmed in three locations [PA, Long Island, and Jersey] and who the fuck gets fired? The fucking girl from fucking Jersey

Only the SECOND fucking person to actually be fucking fired on that fucking show


https://vimeo.com/...ess/rfundercoverboss

"What's your claim?" - Ben Gravy
"Your best work is the work you're excited about" - Rick Rubin
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Re: Legality of gym membership practice [ThisIsIt] [ In reply to ]
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ThisIsIt wrote:
Most gyms are in the membership selling business not the fitness business.

This. For every membership they sell where the member uses the gym, the gym is counting on at least two where the member never comes, never cancels. I know several people who have gym memberships they have had for years and haven't gone to the gym.

California has obscure rules though. I think gym membership contracts are banned there or something. So much so gyms have been sued for EFT agreements implying that it was a de facto contract. This came up in some legal journal or magazine I read once about contract risks.
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