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Consumers - Consumer contracts

Contracts with physical fitness studios

The physical fitness studios in your neighbourhood are offering enticing deals to attract new members. Drawn by the idea of being physically transformed in just a few weeks, you sign up. But before long, you realize you’re not cut out for the health club scene after all. What now?

In this Infosheet, Éducaloi explains what protection you have under the law when you sign up at a physical fitness studio.

What is a physical fitness studio?

A physical fitness studio is an establishment that offers goods or services to help people improve their physical fitness. Such a studio might offer programs focused on weight loss, treatments, dieting, or exercise.

One example of this kind of health club is a Nautilus-style gym, which offers exercise programs to its clients. Weight-loss clinics are also included in this category. When you enter into a contract with this kind of establishment, you are protected by the Consumer Protection Act. The contract between you and the establishment cannot be for a period of longer than a year.

People who run physical fitness studios must have a permit from the Office de la protection du consommateur. You can contact the Office directly by phone to verify whether an establishment has a permit and if it is still valid.

What information should be included in the contract?

When you join a health club, your contract has to satisfy certain conditions.
First, the law requires that the contract be in writing. The document must include the following information:

• the merchant’s permit number;
  
• your name and address;
  
• the merchant’s name and address;
  
• the date and location of the contract signing;
  
• a description of what the contract entails (the goods or services offered);
  
• the date on which services begin;
  
• the duration of the contract;
  
• where you will be receiving the services;
  
• the cost of your membership;
  
• the terms of payment.

You should always read the entire contract to ensure all the information is correct. Read the complete contract – even the fine print that might not seem important. Do not sign the contract if you do not fully understand everything in it. If needed, take a few days to think about your decision.

By law, the merchant must provide you with a copy of the contract. So feel free to insist on getting a copy - it’s your right!

A consumer can ask the court to annul his contract with the merchant if the contract does not contain the information required by law and if this lack of information has actually harmed him.

Do I have to pay right away?

No. You are not required to pay until you have begun to receive the services outlined in your contract.

If the total cost of the contract is $100 or less, the merchant can require you to pay it in one instalment.

However, if the cost is more than $100, you can pay in two or more instalments. These instalments must be of equal value and be made at regular intervals.

For example, suppose your membership costs $200. You can arrange to make several payments (the minimum being two instalments of $100). The merchant cannot require you to pay the total $200 amount in one payment.

In addition, if the contract is for one year, the payments should be made, for example, in January and July. The merchant cannot make you pay in January and in February. The interval between payments must be reasonably equal.

What if I change my mind?

You can change your mind. But the ease with which you can cancel the contract depends on whether or not you have started to benefit from your membership to the physical fitness studio or the weight loss clinic.

• If you signed up for courses on fixed dates or if you are going to see a personal trainer and you still have not started to receive these services, you can cancel the contract without any penalty.
  
• However, if the contract is for using sports equipment or facilities, you cannot cancel the contract without any penalty, unless if, for one reason or another, the equipment or the facilities were not opened to the public after the signature of the contract.

Apart from these situations, you can cancel the contract but only within a period of time equal to one-tenth (1/10) of the total duration of the contract, starting from the time you began receiving services.

For instance, suppose you have a ten-month contract with a weight-loss clinic, and you start receiving services the day you sign the contract. Since the time limit is one-tenth (1/10) of the total contract, and the contract is for 10 months, the deadline for cancelling the contract is one month.

But there is a cost associated with cancelling a contract if you have already begun receiving the services. This fee cannot exceed one-tenth (1/10) the total cost of the contract. Suppose you paid $200 for a membership. The penalty you would have to pay to cancel the contract would be one-tenth (1/10) of $200 – or $20. If the deadline for cancellation has passed, the only way to cancel the contract is to try and negotiate with the merchant.

How do I cancel my contract?

You can cancel the contract using the cancellation form available at the Office de la protection du consommateur, or you can choose to send the merchant a simple notice of cancellation in writing. A phone call is not sufficient—you must give written notice.

The contract will be cancelled once the notice has been sent.

The merchant must reimburse your money within ten (10) days of the contract being cancelled. In some cases, a penalty fee may be deducted from the total amount you owe the merchant if you have already begun using the services.

Do these rules apply to university fitness centres or health professionals?

No. There are certain exceptions under the law to this protection. The following are exempt from the provisions applicable to physical fitness studios:

• school boards and schools;
  
• general and vocational colleges (CEGEPs);
  
• universities;
  
• private schools;
  
• municipalities;
  
• members of a professional order (such as dieticians or doctors).

If you have concluded a contract with any of the above, you cannot rely on the provisions stipulated in the Consumer Protection Act. You can, however, attempt to reach a mutual agreement with the person in charge in order to resolve any problems.

Useful Links :

1. Office de la protection du consommateur website  [http://www.opc.gouv.qc.ca]