revolutioniseSPORT
revolutioniseSPORT is the emerging market leader in online club management in Australia. Whether it is memberships, registrations, events, online sales or governance tools - revolutioniseSPORT is the…
read moreConsumer NZ has launched a campaign to target the use of unfair terms in consumer contracts, with fitness club membership contracts to be one of the first targets of its campaign.
Consumer NZ Chief Executive Sue Chetwin said the 'Play Fair' campaign, launched this week, had been timed to coincide with a ban on unfair terms which came into effect 17th March.
Chetwin said companies had been given generous notice of the ban to give them time to review their contracts and remove unfair terms but explained "there’s little evidence this had happened.
"(As a result) we’re launching our ‘Play Fair’ campaign to highlight companies which continue to use unfair terms despite the ban."
These terms unfairly privilege the seller over the buyer, Chetwin adding that "they can include terms that give the company unilateral rights to vary the contract, the goods or services supplied, or even the price.”
Chetwin said gym contracts would be one of the first targets of its campaign.
She explained "gym contracts can give the gym wide-ranging rights to vary its services.
"But the rights available to the consumer may be extremely limited and costly to use."
Consumer NZ cites Australia, which has had a ban on unfair terms since 2010, where companies are being taken to court over the use of these terms.
A Federal Court ruling in 2013 forced an Australian telco to remove terms that gave it unilateral rights to cancel and to vary the price without allowing customers to opt out.
Chetwin said the ban on unfair terms was one of the most significant changes to New Zealand’s consumer law in the past 20 years.
The ban, introduced in amendments to the Fair Trading Act in 2013, will apply to unfair terms in standard-form consumer contracts – the pre-written terms and conditions used by electricity retailers, telcos, finance providers, pay-TV operators and many other companies.
Chetwin said Consumer would be filing complaints with the Commerce Commission about any company which continues to use unfair terms since the ban took effect on 17th March.
What’s the definition on an unfair term?
The Fair Trading Act defines a term as unfair if it:
• Would cause a significant imbalance between the rights of the company and the consumer
• Is not reasonably necessary to protect the legitimate interests of the company
• Would cause detriment, whether financial or otherwise, to the consumer if it were to be applied or relied on.
What terms are likely to be considered unfair?
The Act contains a list of terms that the courts are likely to regard as unfair. The list includes terms that allow a company tounilaterally:
• Vary the terms of the contract
• Terminate the contract
• Renew or not renew the contract
• Penalise the consumer for breaching or ending the contract
• Vary the price without giving the consumer the right to end the contract
• Vary the characteristics of the goods or services to be supplied.
Does the ban apply to all contracts?
The ban applies to standard-form consumer contracts which are entered into, varied or renewed from 17 March 2015. However, the ban won’t apply to insurance contracts. After successful lobbying, the insurance industry was exempted from the ban. The exemption means any existing insurance policy is allowed to contain unfair terms. The ban will only apply with limited effect to new insurance policies taken out after 17 March.
Who can challenge an unfair term?
At present, only the Commerce Commission can challenge unfair terms in the courts. However, anyone can ask the commission to seek a declaration from the court that a term is unfair. Consumer NZ would like the law amended so individual consumers can also challenge these terms.
What are the penalties for including unfair terms in a consumer contract?
Any company which tries to impose an unfair term on its customers runs the risk of breaching the Fair Trading Act and a $600,000 fine.
For more information go to www.consumer.org.nz/playfair
3rd January 2014 - STATE GOVERNMENTS SINGLE OUT FITNESS SECTOR FOR CONSUMER WARNINGS
10th December 2011 - KIWI SUNBED OPERATORS FAIL SAFETY REQUIREMENTS
30th July 2009 - 'NO DOUBT' SUNBEDS CAUSE CANCER
8th August 2008 - SMH SLAMS FITNESS FIRST
Support our industry news service
We hope that you value the news that we publish so while you're here can we ask for your support?
As an independent publisher, we need reader support for our industry news gathering so ask that - if you don't already do so - you back us by subscribing to the printed Australasian Leisure Management magazine and/or our online news.
The Complete Guide to Leisure Industry Products & Services.
revolutioniseSPORT is the emerging market leader in online club management in Australia. Whether it is memberships, registrations, events, online sales or governance tools - revolutioniseSPORT is the…
read moreJonas Software operates over 110 independently managed software brands around the world, providing them with the strategic guidance and financial security required to be leaders in their respective…
read moreHumanforce is a global provider of workforce management solutions for companies who need flexibility to manage complex workforces. Companies use Humanforce to manage everything from time and…
read moreAdvanced Aquarium Technologies (AAT) is a world leader in the design, construction, and operation of landmark public aquariums. Led from Queensland, AAT has delivered aquarium projects in over 25…
read moreEmail for trade enquiries: Enquiriesapac@myzone.org Customer support desk - Click Myzone support or go to ‘help’ on myzone app to access live support. Myzone® is the leading…
read moreIntelligenz provides Leisure Management Software for managing all your Program Registrations, Facility Bookings, Membership Sales and POS Transactions; including detailed Reporting, automated…
read moreExerp is a global IT specialist in member management software for the fitness and leisure industry. By focusing on the needs of large enterprises, where streamlining, control and scalability are…
read moreLinks Modular Solutions was a leading provider of high-quality, innovative software solutions for aquatic and recreation facilities. Links Modular Solutions is now part of Xplor Technologies.
read moreGet your business noticed in our targeted directory. Viewed by 10,000 industry professionals per week!