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5/09 19 January 2009
The OFT is warning consumers carrying out New Year's resolutions of joining a gym to beware of potentially misleading sales tactics and check carefully before signing any contracts.
In some cases consumers have received unsolicited phone calls, leaflets or pop-ups on websites claiming they have won a free 'gift' of gym membership. However once they have called up a number they discover that their so-called 'gift' requires them to pay a monthly fee and to sign up to a credit agreement. When they have tried to cancel the agreement members are pressurised into continuing making payments.
Separately, the OFT has worked over recent years to secure undertakings with Fitness First, Topnotch, Bannatyne, Esporta, David Lloyd Leisure and LA Fitness to improve their terms and conditions on issues such as cancellations and clarity under the Unfair Terms in Consumer Contracts Regulations which ensure contracts must not be unfairly weighted against consumers. However the OFT is warning that once a gym contract has been signed it is usually for a set period of 12 or 24 months and cannot be simply disregarded if you no longer wish to use the services.
Before signing up for gym membership consumers are advised to:
Consumers seeking advice should contact Consumer Direct for clear, practical, impartial advice on 08454 04 05 06 or visit the Consumer Direct website.
Mike Haley, OFT Director of Consumer Protection, said:
'While joining a gym is a positive step with a huge range of benefits, consumers should carefully consider the terms of joining before signing up to the service and only do so if it is right for their circumstances. It is often when members try to end a contract with their gym that they realise they have committed to paying for a service over a long period of time and they cannot cancel without paying a charge.'
NOTES
1. Consumer Direct is a telephone and online consumer advice service, supported by the OFT and delivered working in partnership with Local Authority Trading Standards. It provides clear, practical, impartial advice to help resolve problems and disagreements with suppliers of goods or services. Contact 08454 04 05 06 or visit the Consumer Direct website.
2. The OFT has also produced a guide, Are They Fit to Join, a guide to health club membership terms (pdf attached).
The OFT is warning consumers carrying out New Year's resolutions of joining a gym to beware of potentially misleading sales tactics and check carefully before signing any contracts.
In some cases consumers have received unsolicited phone calls, leaflets or pop-ups on websites claiming they have won a free 'gift' of gym membership. However once they have called up a number they discover that their so-called 'gift' requires them to pay a monthly fee and to sign up to a credit agreement. When they have tried to cancel the agreement members are pressurised into continuing making payments.
Separately, the OFT has worked over recent years to secure undertakings with Fitness First, Topnotch, Bannatyne, Esporta, David Lloyd Leisure and LA Fitness to improve their terms and conditions on issues such as cancellations and clarity under the Unfair Terms in Consumer Contracts Regulations which ensure contracts must not be unfairly weighted against consumers. However the OFT is warning that once a gym contract has been signed it is usually for a set period of 12 or 24 months and cannot be simply disregarded if you no longer wish to use the services.
Before signing up for gym membership consumers are advised to:
- shop around to make sure you are getting the best deal
- ask specific questions such as 'what happens if I'm ill or injured and unable to use the facilities?
- ask if they offer any trial periods or short-term memberships
- if the salesperson makes verbal promises such as 'you can cancel your membership at any time', ask them where this is set out in their terms and conditions or, if they are not, to confirm the point in writing
- only join up if you are sure you can afford the payments and commit to the time involved
- look out for terms that automatically extend the official membership period without consent
- check for exactly how long you must be a member and the circumstances in which you may cancel your membership, and
- if you are told you have won a gift or a prize from a competition, be careful and ask yourself if you have actually entered any competition - and investigate the terms thoroughly before signing any documents.
Consumers seeking advice should contact Consumer Direct for clear, practical, impartial advice on 08454 04 05 06 or visit the Consumer Direct website.
Mike Haley, OFT Director of Consumer Protection, said:
'While joining a gym is a positive step with a huge range of benefits, consumers should carefully consider the terms of joining before signing up to the service and only do so if it is right for their circumstances. It is often when members try to end a contract with their gym that they realise they have committed to paying for a service over a long period of time and they cannot cancel without paying a charge.'
NOTES
1. Consumer Direct is a telephone and online consumer advice service, supported by the OFT and delivered working in partnership with Local Authority Trading Standards. It provides clear, practical, impartial advice to help resolve problems and disagreements with suppliers of goods or services. Contact 08454 04 05 06 or visit the Consumer Direct website.
2. The OFT has also produced a guide, Are They Fit to Join, a guide to health club membership terms (pdf attached).
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