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Few things are more frustrating than deciding to cancel your gym membership and being hit with steep cancellation fees.
According to Canstar, Australians typically shell out about $756 annually on gym memberships, which breaks down to roughly $63 each month.
Here’s what you need to understand about your consumer rights when it comes to cancelling a gym membership.
What can’t a gym do when a member cancels?
Most gym memberships operate on standard form contracts, and under Australian Consumer Law, there are specific clauses that these contracts cannot include.
“Businesses can set requirements and conditions for cancellations in their contracts,” an ACCC representative stated.
“However, they must ensure these terms do not fall under the category of unfair contract terms.”
Unfair contract terms include:
- terms that would cause a significant imbalance in the parties’ rights and obligations under the contract
- terms that are not reasonably necessary to protect the business
- terms that would cause detriment (financial or otherwise) to a consumer
Gyms caught proposing, using, or relying on unfair contract terms in standard form contracts can face fines up to $2.5 million for individuals and $50 million for businesses.
“If consumers have a dispute about a gym membership or subscription, they should contact their local state or territory consumer protection agency in the first instance,” the ACCC spokesperson said.
“They can also report the issue to the ACCC.
How to cancel a gym membership
Once you’re across the terms of your contract, you can request to cancel your gym membership – this can usually be done in-person, over the phone or online.
Regardless of how you cancel, always get confirmation of your cancellation in writing with proof of the date you cancelled.
This is because many gyms require members to give notice of cancellation in advance to stop payments.
How much notice do you have to give to cancel a gym membership?
Aussies must give gyms up to 30 days notice when cancelling a membership, during which time they will still be charged for the service.
Notice periods vary from gym to gym, but cannot be more than 30 days.
This is sometimes known as a four-week cancellation policy.
Can gyms charge you to cancel membership?
Yes, gyms can charge termination fees when you cancel a membership.
These must be laid out clearly in your contract under the Australian Consumer Law.
Cancelling gym memberships online
Some gyms require members to attend the gym in-person to cancel a membership.
Check your contract to see if this applies at your gym.
