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NCA publishes guidelines for fairer contracts in leisure and fitness sector

NCA and Jackie Skelly Fitness agree revised terms and conditions for club's contracts

30 October 2008

The National Consumer Agency (NCA) has outlined details of three initiatives aimed at ensuring that members of leisure and fitness clubs would get a fairer deal.

Following a number of complaints from consumers concerning the inherent unfairness of some terms and conditions in leisure sector contracts, the NCA reviewed the terms and conditions of membership agreements used by a number of the larger gyms and leisure and fitness clubs.

The Agency, in consultation with the sector's representative bodies, ILAM - the Industry Body for Sports, Fitness, Aquatic Facilities, Spas and Wellness - and the Irish Hotels Federation (IHF), has prepared a guide for the sector on how to draw up contracts, which should reflect an even balance between the interests of consumers and service providers.

These guidelines will help leisure and fitness clubs to interpret and understand the requirements of the Unfair Terms in Consumer Contracts Regulations.

Seven Principles

In tandem with the preparation of the guidelines, the Agency, also in consultation with ILAM and the IHF, has drawn up Seven Principles for the sector.

These Principles, which are non-binding, could essentially be regarded as best practice for leisure clubs in the context of their contractual commitments to consumers.

The Agency has also concluded negotiations with Jackie Skelly Fitness, on the compatibility of the terms and conditions of a new membership agreement with the European Communities (Unfair Terms in Consumer Contracts), Regulations, 1995.

The new agreement will be of significant benefit to gym users. Applicants will be in a better position to fully understand the terms and conditions of the contract that they are entering into.

The Chief Executive of the National Consumer Agency, Ms Ann Fitzgerald, noted: "While both the guidelines and the Seven Principles are voluntary, we expect the leisure sector to review their contract agreements in line with the guidelines.

"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."

Ms Fitzgerald added: "There is a legal and moral obligation on all fitness and leisure clubs to act fairly and equitably towards their members.

"This includes the need to use simple, fair and easily understood wording in their contracts and membership forms. This guide is intended as a tool to help the leisure sector do this.

"The input of both ILAM and the IHF should encourage their members to immediately review their membership contracts and bring them into line with the guidelines."

Jackie Skelly Fitness

Commenting on the adoption by Jackie Skelly of a fairer, clearer and more evenly balanced membership agreement, Ms Fitzgerald, went on say: "With 10 leisure centres, Jackie Skelly is the single largest leisure and fitness group in the State.

"We are delighted to have worked with the company and the club'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."

The Guidelines and Seven Principles are on the Agency's website NCA.ie, and consumer tips on gym contracts are on the NCA's website for consumers, ConsumerConnect.ie

Learn more

Check out our tips for consumers about gym contracts

Read the Guidelines for Gyms and Fitness Clubs on our corporate website NCA.ie

Read a comparison of the original Jackie Skelly Fitness membership contract and the revised terms

Find out more about the Seven Principles for the Fitness and Leisure Sector on our corporate website NCA.ie