Latest News

Back to Latest News back

 

New Zealand gyms to change contract terms after Commerce Commission review

New Zealand gyms to change contract terms after Commerce Commission review
August 22, 2017

New Zealand fitness clubs have agreed to amend their standard form contracts after a Commerce Commission review into unfair contract terms in the sector.

New Zealand’s Fair Trading Act bans contract terms which create a significant imbalance of rights or obligations between companies and consumers.

Fitness clubs are the third sector to be reviewed by the Commission, following reviews into retail telecommunications and energy contracts. Commissioner Anna Rawlings said the sector generates a range of consumer complaints, with more than 700,000 New Zealanders belonging to a gym or fitness centre.

The review considered 10 standard membership agreements from a range of small and large providers nationwide including Anytime Fitness, City Fitness, Club Physical, Configure Express, Jetts, Les Mills, Next Generation, Snap Fitness, and Loft 45.

It also looked at the Debitsuccess template contract a range of smaller gyms use.

Rawlings advised “our review identified a number of potentially unfair terms across the contracts.

“These included onerous liability provisions where gyms’ tried to exclude all liabilities to customers for damage or loss to members’ property, as well as provisions allowing the gym to unilaterally vary their location and services. A number of the contracts were also not written in plain English and contained complicated and onerous cancellation processes and notice provisions.

“We’re satisfied with the response from gyms to our concerns, with all providers demonstrating a desire to comply with the law, either justifying how the terms are necessary to protect their legitimate business interests or agreeing to amend their contracts. For some it prompted a complete rewrite of their contracts.”

“We’re particularly pleased to see gyms amending their termination clauses and associated fees. This includes some gyms reducing their 30 day notice periods for cancellations outside any minimum term down to between seven and 14 days. Some gyms also amended provisions relating to their liability to members, and variation clauses about their location and the services they offer.”

The Commission has provided compliance advice letters to all gyms involved in the review reminding them of their obligations under the Fair Trading Act. It also encourages gyms that were not involved in the review to consider their own contracts in light of the information provided in the report. 

9th February 2016 - GYMS RISK BREACHING UNFAIR TERMS BAN

6th December 2015 - ACCC URGES BUSINESSES TO CHECK THAT THEIR CONTRACTS ARE FAIR

1st September 2015 - FLEXIBLE GYM CONTRACTS IMPROVE MEMBER RETENTION 

18th March 2015 - CONSUMER NZ TARGETS GYMS AS PART OF UNFAIR CONTRACT TERMS CAMPAIGN 

10th December 2011 - KIWI SUNBED OPERATORS FAIL SAFETY REQUIREMENTS


Asking a small favour
We hope that you value the news that we publish so while you're here can we ask for your support?

The news we publish at www.ausleisure.com.au is independent, credible (we hope) and free for you to access, with no pay walls and no annoying pop-up ads.

However, as an independent publisher, can we ask for you to support us by subscribing to the printed Australasian Leisure Management magazine - if you don't already do so.

Published bi-monthly since 1997, the printed Australasian Leisure Management differs from this website in that it publishes longer, in-depth and analytical features covering aquatics, attractions, entertainment, events, fitness, parks, recreation, sport, tourism and venues management.

Subscriptions cost just $90 a year.

Click here to subscribe.

 

supplier directory

The Complete Guide to Leisure Industry Products & Services.

See the directory see all

SLE WORLDWIDE AUSTRALIA PTY LTD

SLE Worldwide Australia is a Managing General Underwriter specialising in insuring risks in the world of Sports, Leisure and Entertainment. Be it relaxing, playing, organising or watching sports,…

read more

Insurance / Venues

 
 

SICO SOUTH PACIFIC

SICO is at the forefront in innovative mobile folding and rolling, space efficient tables, stages, dance floors and many other products which help our customers optimise their use of space. Image…

read more

Entertainment / Events / Venues

 
 

ELITE POOL COVERS

Since 1989 Elite Pool Covers have designed and manufactured an extensive range of high quality affordable manual,semi-automatic and fully-automatic pool cover systems for the harsh Australian…

read more

Aquatics / Environment / Technology / Venues

 
 

Aquaspin

AQUASPIN™ - Aqua Cycling Aquaspin™’s sessions have been specially designed by our Master Trainer to be challenging yet fun group cycling sessions. Each session is tailored to…

read more

Aquatics / Fitness / Recreation / Wellness

 
 

Hydrocare Pool Services

Hydrocare Pool Services Pty Ltd offer 25 years of experience in aquatic industry features, products and water treatment. Hydrocare Pools has undertaken water treatment for aquatic centres and…

read more

Aquatics / Attractions / Play / Recreation / Technology

 
 

SKC Operations Pty Ltd (SKCorp)

SKC Operations Pty Ltd (SKCorp) is an expert retail and marketing services team specialising in sports, leisure, aquatics, fitness, health, wellness & recreation industry. Using proven…

read more

Aquatics / Consultants / Fitness / Marketing / Retail

 
 

IEDM

iEDM integrate Design, Engineering and Delivery Management services to convert existing spaces into exciting new entertainment venues. Our team consists of highly qualified professionals with diverse…

read more

Consultants / Design

 
 

IP HUB

Talk To Us For Independent Advice & Specialised Services We're business people, not sales reps IP HUB is one of Australia’s leading advisors on telecoms for both small businesses and…

read more

Marketing / Technology

 
 
 
 

get listed with our suppliers directory

Get your business noticed in our targeted directory. Viewed by 10,000 industry professionals per week!

list your business