Remember the rules on gym cancellations
WA Consumer Protection is reminding fitness providers, including Pilates studios, about their obligations under the Fitness Industry Code of Practice when it comes to membership cancellations.
They continue to receive a high number of consumer complaints against fitness service providers who are not honouring cancellation requests for medical reasons.
Under the Code, consumers have the right to cancel their membership due to permanent illness or incapacity.
They have been made aware of instances where a fitness service provider will monitor the client’s illness or incapacity by requesting regular updates from the client or doctor and defer the agreement rather than cancel. This is unacceptable.
Customers can also cancel their membership without providing a reason within seven days of signing an agreement (the cooling off period).
Below are some reminders of the legal requirements around cancellations, but you need to make sure you know all the requirements contained in the Code.
You may charge for:
- Administration costs.
- Any fitness services the customer has used.
- A termination fee if the membership is cancelled before the end of the initial term, and this is specified in the membership agreement.
In terms of refunds:
- For pre-paid agreements, you must refund any unused time, excluding the notice period.
- Any refund owed must be provided within 7 days.
It is not OK to:
- Require someone to cancel a membership in person.
- Need written cancellation on a specific form.
- Continue accepting direct debit payments after the membership is cancelled.
- Charge fees not related to financial loss incurred due to the cancellation.
These practices are all prohibited under the code.
WA Consumer Protection can undertake investigations and prosecute non-compliant fitness service providers.
The Fitness Industry Code of Practice can be viewed on the Consumer Protection website. Enquiries can be made by email or by calling 1300 30 40 54.
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