Tips on what to do before you sign a gym contract

People joining gyms as part of new year health resolutions are being warned to watch out for tricky contract terms and potential rip-offs after the state’s consumer watchdog received 727 complaints last financial year.

People joining gyms as part of new year health resolutions are being warned to watch out for tricky contract terms and potential rip-offs.

Victoria’s consumer watchdog received 727 complaints last financial year relating to gym memberships.

Contract cancellations, ­disputed and unreasonable charges, and refund and return rights were common issues.

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One customer was chased for fees despite cancelling a membership in 2010. The debt collector reportedly couldn’t provide proof of membership or records of owed charges.

In another case, a fitness centre advertising a “no joining fee” charged $50 for an ­access card.

Another gym reportedly ­demanded to see travel itineraries as proof of holiday plans before agreeing to suspend payments.

Consumer Affairs Victoria has acted to remove or modify terms in some health and fitness centre contracts.

People considering a gym membership should understand what they are signing up to. Picture: iStock

These have included automatic membership renewal without the chance to cancel at the end of a minimum term; ­allowing varied services without notice; and penalising ­consumers for terminating memberships.

Australia’s gym and fitness centre industry is forecast to grow 2.6 per cent this financial year, with revenue reaching $2.5 billion, according to market research firm IBISWorld.

Its senior industry analyst Bao Vuong said: “The health consciousness trend has also been fuelled by wider ­social trends such as fitness ­inspiration posts on Instagram, which will boost the ­industry’s performance further”.

Decide on your fitness goals and budget so you know what type of membership will suit you. Picture: iStock

Acting Consumer Affairs Minister Lisa Neville said: “Victorians who are considering a new gym membership need to make sure they understand what they’re signing up to and read the fine print.

“We have strong consumer laws in place to protect people from unfair contract terms, but Victorians need to know their rights.”

Consumers are advised to decide on fitness goals and a budget to determine the best type of membership; tour gyms and check operating times; and try ‘pay-as-you-go’ to see if a centre suits your needs and lifestyle.

Before signing a contract, find out if a cancellation request needs to be in writing or in person, and whether there is a mandatory notice period.

Check whether introductory offers need you to “opt out” or give notice to end the trial, otherwise you may automatically switch to paying for a full membership at the end of a trial period.

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@KarenCollierHS