Categories: AU

Thinking of Cancelling Your Gym Membership in Australia? Know Your Rights First!

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Few things are more frustrating than opting to end your gym membership only to be hit with steep cancellation charges.

Canstar reports that Australians typically shell out around $756 annually, translating to approximately $63 monthly, for their gym commitments.

Understanding your consumer rights is crucial when looking to terminate a gym membership.

The average Australian with a gym membership spends $63 per month, which adds up in a cost of living crisis. (Getty)

The good news is that you do have the right to cancel.

However, the specifics of how you can cancel will differ from one gym to another.

However the terms of your cancellation may vary depending on the gym.

Some gyms enforce specific rules around cancellation, such as charging a fee or requiring members to attend the gym in-person to cancel.

“Businesses should provide clear and accurate information to consumers up-front about the memberships or subscriptions they are offering,” a spokesperson for the Australian Competition and Consumer Commission (ACCC) told 9news.com.au.

“Including any automatic renewal of the contract, consumers’ ability to cancel the contract, and any cancellation fees that might apply and when.”

What are the rules around cancelling a gym membership?

This depends on the specific gym you’re signed up with and what contract you’re on.

The first step for anyone looking to cancel their gym membership is to check the cancellation terms on their contract.

If you only recently joined the gym, you may be able to quit without paying a fee if you’re still in a cooling-off period.

These are in place to ensure members who cancel within a set time (typically within seven days of joining) only pay for administration costs or services used, not the full contracted membership period.

Other common terms include a mandatory notice period, or termination fees.

“Some states and territories also have additional protections for consumers in state-specific laws regarding gym memberships,” the ACCC spokesperson said.

“For example, in Queensland, the Fitness Industry Code of Practice contains requirements that gyms must meet regarding disclosure of information in membership agreements, cooling off periods, the notice period a gym must give before renewing an agreement, and termination of membership agreements.”

There are some things that can’t be included in gym contracts under the Australian Consumer Law. (Getty)

What can’t a gym do when a member cancels?

Most gym memberships are based on a standard form contract and there are certain things that can’t be included in these under the Australian Consumer Law.

“Businesses can include requirements for, and conditions on, cancellations in their contracts,” an ACCC spokesperson said.

“However, they need to take care to ensure such terms are not 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.

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