OFT to probe gym contracts

If you’ve signed up for a lengthy gym contract you never use but can’t get out of, help could soon be at hand.

The Office of Fair Trading (OFT) has announced an investigation into unfair gym contract terms that could be in breach of consumer protection regulations. The OFT probe will also look into whether some gym owners are engaging in unfair business practices.

Although the trade watchdog would not say which companies were involved in the investigation, national chains such as Virgin Active and LA Fitness are thought to be included. A spokesperson for Virgin Active said the firm had already received a request for information earlier in the week.

The investigation was launched after the OFT received a number of complaints from consumers about the length of some gym membership contracts and unfair cancellation polices. Some gym membership plans can see consumers locked into contracts for up to 24 months. Most have no option but to carry on paying regardless of whether they use a gym’s facilities or not.

Concerns were also raised about people being unable to extricate themselves from gym contracts when their circumstances change. LA Fitness received a barrage of criticism from Twitter users last week after it tried to force a pregnant woman and her jobless husband to pay £780 to clear 15 months of a contract debt, despite them being in danger of losing their home.

A spokesperson for the OFT said: “This investigation is at an early stage and it should not be assumed that the parties involved have breached any consumer protection legislation.

“The OFT will not reach a view on whether the law may have been infringed by any company until it has completed its investigation.”

The launch of the probe follows a high court ruling last August that contacts written by Ashbourne Management Services Limited (AMS), a gym management firm, were unfair and that a number of debt collection practices amounted to unfair commercial practices. The OFT said it expected any company employing similar contract terms and practices to change them in line with the ruling.

At the time of the ruling, Cavendish Elithorn, senior director of the OFT Goods and Consumer Group, said: “Gym companies should also be aware that trying to enforce illegal contract terms is a breach of the law and in certain circumstances they may have a duty to notify customers where their contract terms have been found to be illegal.

“This case sends a clear signal to traders that the OFT and local trading standards services will not hesitate to take action to protect consumers.”

In defence of the industry, David Stalker, CEO of the Fitness Industry Association (FIA), said: “At the FIA we strongly believe in following the rulings drawn up by the OFT and are happy to play an advisory role in this investigation process. They (the OFT) have made it clear that it should not be assumed that the parties involved have breached any consumer protection legislation and we must await its findings to draw any conclusions.

“The FIA’s vision, to get more people, more active, more often, is shared by our members who offer a wide variety of membership options to suit individual budgets and training needs; placing consumers at the heart of their offering and motivating people to lead an active lifestyle.”