Members of the two largest gyms in Wairarapa have been reassured their contracts "are up to scratch" in the wake of Commerce Commission warnings to operators nationwide.
The commission posted warnings on Monday that thousands of people may have entered into gym contracts that breached the Credit Contracts and Consumer Finance Act.
Graham Gill, Commerce Commission competition branch manager, told the New Zealand Herald it was possible some gyms were unaware about the need to disclose the consumer's right to cancel their contract and the full cost of membership.
"The law in this area is a little bit tricky, however I think there are some gyms at the outer extremity of the industry that are probably completely unaware of their obligations and don't particularly care just as there are in the wider credit industry."
Jenna Mitchell, manager of the Masterton cityfitness gym, said members were fully informed at sign-up about their right to cancel and the full cost of membership. She said the gym had more than 800 members and calls about contract details were not unusual.
"We make sure they are fully aware and we're all up to scratch," Ms Mitchell said. "And if a member shifts to another area where we are based or wants to cancel because of a change in finances, we take all those circumstances into account."
Tova Miller, manager of the CLM gym in Masterton, said the facility had about 800 members. She said disclosure issues surrounding membership cancellation and full costs were raised when GST was increased last year.
"Those very points were brought to our attention last year and we're all on par," she said.
"We have had a couple of inquiries in the past day or so but there have been no complaints from members."
Mr Gill warned failure to make full disclosure to consumers would make a contract unenforceable and an attempt to enforce the contract might also breach the Fair Trading Act.
"We have encouraged the gym industry to seek legal advice and put this matter right urgently," he said.
Masterton gyms in shape
AdvertisementAdvertise with NZME.