Technogym
Technogym
Technogym
Leisure Opportunities
Job search
Job Search
see all jobs
Latest job opportunities
Exeter City Council
£40,221 - £42,403pa + pension + benefits
Exeter
Active Luton
£61,000 - £64,000 + exceptional pension + excellent benefits
Luton
University of Warwick
£29,605 - £32,982pa + pension + benefits
Coventry, West Midlands
Harrow School
£13.71 per hour
Harrow, London
Mount Batten Group
c£65,000pa + pension + benefits
mount batten centre, plymouth

Easy cancellations and cooling off periods will be part of new consumer legislation impacting health club memberships

The Digital Markets, Competitions and Consumers Bill is closer to becoming law - moves to the House of Lords today
The Competitions and Markets Authority will be given stronger powers to protect consumers
It will make it harder to tie members into contracts, favouring operators with no contacts, such as The Gym Group and PureGym
Cancellation terms will have to be made clear at the outset and regular cooling off periods given
Job opportunities
Harrow School
£13.71 per hour
location: Harrow, London, United Kingdom
Exeter City Council
£40,221 - £42,403pa + pension + benefits
location: Exeter, United Kingdom
Active Luton
£61,000 - £64,000 + exceptional pension + excellent benefits
location: Luton, United Kingdom
more jobs

New legislation will change the way health clubs in the UK manage their membership process, creating greater powers for consumers when it comes to contracts and cancellations.

The Digital Markets, Competition and Consumers Bill – designed to clamp down on subscription traps, fake reviews and drip pricing – has been making its way through the parliamentary process and moved to the next stage in the House of Lords today (Monday 11th March), as it progresses towards the statute books.

The bill is expected to receive Royal Assent in the spring and become law thereafter.

The legislation will grant the Competitions and Markets Authority (CMA) stronger powers to tackle businesses that breach consumer rights in a variety of ways. This includes the requirement for them to give clear information to consumers up-front at the point a contract is signed, rather than hiding it in small print. Businesses will also be obliged to make it easier for consumers to get out of contracts.

All key contract information, such as payment and cancellation terms and cooling off periods, must be made available to consumers in one go before checkout completion.

There will also be a mandatory 14-day cooling off period at the start of every contract and – importantly – a further 14-day cooling off period if prices change and at the end of each contract term, with the consumer pro-actively notified and given sufficient notice.

In some cases this will mean that a 14-day cooling off period will need to be given at the end of every year of membership.

Reminder notices must be sent for the first renewal payment and at least every six months thereafter.

Information about cancelling must be given to consumers, including the website or email address for contact and the amount of notice needed. Details about prices and payment dates must also be made transparent.

Consumers must have the ability to show their intention to cancel with one signal, such as switching off auto-renewal or clicking cancel online in a customer dashboard or app. Fundamentally, the legislation will insist that the mechanism for cancelling should be as simple as that which is used for the sign-up.

Any notice periods or leaving fees must be clearly communicated with consumers when entering any contract.

At the moment, some operators insist that consumers both cancel their direct debit and notify them in writing that they intend to leave – often with a penalty notice period in place, meaning the member sometimes need to continue to pay for a period of time once they’ve decided to leave. This practice will no longer be legal.

Another point of the legislation, which is likely to have an impact for the sector, is around drip pricing: where people are drawn to a product for a low price, but during the checkout process, fees or other charges are added, making the final price higher than advertised.

The legislation is not trying to stop contracts specifically, but saying operators must be open and honest and not catch people out with the small print. For example, if there’s a three-month notice period, or a joining fee, this must be made clear at the outset and a record made of the customer accepting and understanding these terms.

Contracts are not popular among consumers and the fitness industry’s history of onerous contacts lingers and causes scepticism with some potential members, doubtless having an impact on market penetration levels.

The Office of Fair Trading demanded better cancellation rights in the sector more than 10 years ago and it has taken this long for the legislation to be drafted and to make its way through the system.

Trends in the industry are going towards flexibility and meeting people where they are. For most, the gym will only account for part of their weekly schedule of physical activity: they might go to multiple providers, do some outside activity and home workouts, so not tying people into contracts gives low-cost operators, such as The Gym Group and Pure Gym, a competitive advantage.

As the sector evolves to support the health and wellness of the nation, looking to ally with the healthcare sector, membership models need to evolve as well. The best way to keep members is to work on retention, ensuring value for money and a positive experience.

Trade body, UK Active, has told HCM it’s been representing the industry’s concerns about elements of the new legislation to government and working with it to understand anticipated impact on the sector.

Director of policy, research and communications at UK Active, Clemency Lion, said: “While we support the government’s push to ensure consumers are properly protected, we want to make sure these new measures don’t place an undue burden on our members.

Once the Bill becomes law, UK Active says it will lobby to get secondary legislation passed, as well as issuing guidance for businesses.

UK Active says it doesn’t expect changes to be enforced before October 2025, giving time for this secondary legislation – the practical measures that enable the law to be enforced – to be completed.

“We continue to work closely with the Department for Business and Trade on ensuring the interests of our members are considered and consulted throughout the legislative process," said Lion.

HCM will continue to debate this subject and welcomes your thoughts. Email [email protected].

To find out more about the Bill and receive the latest updates, please email ukactive’s Public Affairs team at: [email protected].

Sign up for FREE ezines, news alerts & magazines
New legislation will change the way health clubs in the UK manage their membership process, creating greater powers for consumers when it comes to contracts and cancellations.
HAF,FIT,IND,PTS,FRN
2024/THUMB352844_286244_215467.jpg

More News

1 - 15 of 67,875
19 Apr 2024
Norwegian health club operator, Treningshelse Holding, which owns the Aktiv365 and Family Sports Club fitness chains, has acquired fellow Norwegian operator, Aktiv Trening. The purchase ... More
19 Apr 2024
The HCM team were busy at the recent FIBO Global Fitness event in Cologne, Germany, distributing a special FIBO edition of HCM in support of ... More
18 Apr 2024
Atlanta-based boutique fitness software company, Xplor Mariana Tek, has kicked off a push for international expansion. Shannon Tracey, VP of sales and marketing, says the ... More
18 Apr 2024
The Global Wellness Institute (GWI) has released new data on the US’ wellness economy, valuing it at US$1.8 trillion. According to the organisation's recent report ... More
18 Apr 2024
The fitness sector’s pivot to active wellbeing is being discussed in a new weekly podcast, called The Conveners, and hosted by chair of GM Active ... More
19 Apr 2024
UK sauna enthusiasts will converge at Galgorm Resort in Northern Ireland next week for the highly anticipated second annual UK Aufguss Championships. Hosted from 22-24, ... More
17 Apr 2024
Remedy Place, a US-based social wellness club brand, is poised for steady expansion in the coming years, with plans to open two new clubs annually ... More
17 Apr 2024
Everyone Active has launched a golfing brand, Everyone Golf, after new contract wins made it the UK’s second-largest golf operator in the UK, with ten ... More
16 Apr 2024
Planet Fitness has a new CEO – Colleen Keating. She will take up the position on 10 June. The announcement follows a search which began ... More
16 Apr 2024
Swiss longevity brand Clinique La Prairie (CLP) has inked a deal with Montara Hospitality Group to operate a resort at Tri Vananda – a purpose-built ... More
16 Apr 2024
UK Active has announced details of its annual health and fitness industry awards ceremony, which will take place in Birmingham on the evening of Thursday ... More
16 Apr 2024
Social enterprise, Places Leisure, which is part of the Places for People Group, has appointed Belinda Steward as MD. Steward was previously MD at Derwent ... More
15 Apr 2024
Six Senses has announced the grand opening of its first-ever property and spa in the Caribbean, called Six Senses La Sagesse. With a picturesque beachfront ... More
15 Apr 2024
Basic-Fit has signed up to trial Wellhub across its recently expanded Spanish network, giving access to subscribers and enabling them to use all 152 of ... More
15 Apr 2024
Having redefined the model of public-private collaboration in Spain, Go Fit is now expanding into Italy and has ambitious plans to grow its estate, memberships ... More
1 - 15 of 67,875
Technogym
Technogym