Contract guidelines for gyms agreed

GUIDELINES AIMED at making gym membership terms and conditions fairer and more transparent have been agreed by the National Consumer…

GUIDELINES AIMED at making gym membership terms and conditions fairer and more transparent have been agreed by the National Consumer Agency and the representative organisations of the fitness sector.

The agency has also reached agreement with one of the biggest fitness club chains in the State to make modifications to its contracts, and has published a series of best practice principles that it is urging gyms to adopt.

After receiving a substantial number of complaints about the "inherent unfairness" of some gym contracts, the agency carried out a review of the terms and conditions of membership agreements commonly used by leisure and fitness clubs.

Among its main concerns were a lack of clarity about minimum membership periods, and notice periods for cancellation. It also took issue with vague references to cancellation charges and questioned clauses that allowed clubs to make substantial contract changes without consulting members. It also highlighted as problematic clauses excluding clubs from liability for death or injury to members resulting from an act or omission of the seller or supplier.

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Yesterday, the agency, in consultation with both the Irish Hotels Federation and Ilam - the industry body for sports, fitness, aquatic, spa and wellness facilities - published a guide for the sector on how to draw up contracts.

It said the guidelines reflected "an even balance" between the interests of consumers and gyms.

The National Consumer Agency also concluded negotiations with Jackie Skelly Fitness on compatibility of the terms and conditions of a new membership agreement with the European Communities (Unfair Terms in Consumer Contracts) Regulations.

It said the agreement would put applicants in a better position to fully understand the terms and conditions of the contract that they were entering into.

A spokeswoman for Jackie Skelly Fitness said the gym had been "very happy" to work with the NCA on the new guidelines.

She said no "major changes" had been made to its membership terms, but it had "increased the size of our membership contract which made the terms and conditions simpler and easier to read".

The NCA also published seven non-binding best practice principles for the sector. Among the seven is a promise to give potential members the opportunity to read and understand terms and conditions before signing up, a commitment to take "particular care" to explain to all potential members the requirements of joining for a minimum fixed period, and the cancellation procedure.

The agency chief executive Ann Fitzgerald said that while the guidelines and the seven principles were voluntary, she expected the leisure sector to review their contract agreements in line with both.

"By having easily understandable membership agreements and by adopting the seven principles, the leisure sector will be offering a fairer deal to consumers, and will benefit the consumer and club alike. Openness and fairness will encourage more clients to join up," she suggested.

There was a "legal and moral obligation" on fitness and leisure clubs to act fairly and equitably towards their members, she pointed out.

They also had an obligation to use "simple, fair and easily understood wording in their contracts and membership forms". The consumer agency's guide was intended as "a tool to help the leisure sector do this".

In relation to the commitment by Jackie Skelly Fitness to adopt "a fairer, clearer and more evenly balanced membership agreement", Ms Fitzgerald said she was "delighted" and expressed the hope the chain's "engagement with the review will help to ensure that the new membership agreement benefits thousands of consumers who will now fully understand the terms of their contracts".

Conor Pope

Conor Pope

Conor Pope is Consumer Affairs Correspondent, Pricewatch Editor