Consumer Protection has announced it is extending the cooling off period for fitness industry contracts from 48 hours to seven days.
The extension is part of an updated mandatory Code of Practice that will come into effect on 1 July 2021.
Commissioner for Consumer Protection, Lanie Chopping said the code would be expanded to include other fitness service providers apart from traditional gyms, such as personal trainers and group exercise organisers.
“Clearer membership agreements, transparent pricing to make comparisons easier, protection of personal information and simplifying the cancellation process are other features of the new regulations,” Ms Chopping said.
“There are also specific provisions to ensure that suppliers of fitness services and their staff don’t engage in high-pressure sales tactics or make statements that are misleading or unfair.”
She said there had been a huge growth in the variety of fitness services being offered outside of gyms, so the code needed to be widened to capture those providers.
“The content and layout of contracts will be clarified and a summary statement included to help consumers understand their responsibilities and the costs involved,” Ms Chopping said.
“It will be made clear whether it involves an ongoing month-to-month renewal or is a fixed-term contract of no longer than 12 months.”
She said members must be notified by the provider before the automatic renewal of their memberships to give them a chance to cancel it without penalty should they wish to do so.
“Cancelling memberships can also raise issues for consumers so the regulations will allow for full disclosure of cancellation fees in the contract, electronic notification from members and immediate cancellation of direct-debit arrangements,” Ms Chopping said.
“Cancellation fees need to be a true reflection of reasonable administration costs associated with the termination of the agreement,” she said.
