Written by Consumer Protection BCâs enforcement department
Scenario:Â
You have decided that itâs time to get fit! You sign up at the local gym for a one year membership. The 12 month gym membership includes weight training, cardio machines, as well as unlimited yoga and spin classes. You sign a contract and pay the entire 12 month membership fee of $600. Youâre eager to get into shape so you go to yoga and spin classes at least 5 times a week. After a few months, the owner of the gym tells you they will no longer offer those classes but they will still provide weight training and cardio equipment.
What would you do?
(a) Wish they still offered yoga and spin classes but you do nothing, thinking that you still have 9 months left on your contract, and youâve already paid so there isnât much you can do.
(b) Ask for a refund for the remaining 9 months of your contract because the gym made substantial changes in the services they provided.
(c) Demand the gym gives your $600 back so you can find another gym that offers yoga and spin classes.
Answer:
(b) You can cancel your contract because the gym made a material change to the services they were providing when they stopped offering yoga and spin classes. To cancel, visit Consumer Protection BCâs website for a notice of cancellation form. You must provide the reason for the cancellation and send the notice in a manner that you can prove you sent the notice (email, fax, registered mail, in person). The law says a business must refund you within 15 days after receiving the notice of cancellation. Your refund would be $450.41. The formula for a refund is:
Portion of all cash payments =Â (unused services) 274 days /Â (total services) 365 days
When you purchase a gym membership, you are entering a type of contract called a continuing services contract. These contracts usually also apply to dance lessons, personal training, weight loss programs or self-defence classes. At Consumer Protection BC, we are responsible for regulating specific parts of these contracts â including consumer cancellation rights and what information must be in the contract.
For more information about your rights and responsibilities when it comes to gym membership contracts, please visit our blog posts related to continuing services contracts listed below.
ADDITIONAL READING:
Joining a gym? Hereâs why you should âsweatâ your membership, first
If you have a gym membership, check out this blog
Work out the details of your gym contract before signing!
This information is very useful for me. Thank you for telling about gym membership in the post. Really, if we signed up the local gym for a one year membership then one year membership will include weight training, unlimited yoga and spin classes. Really nice article.
good information, however what is one to do when they show up to the establishment and there’s a letter taped to the door saying doors closed due to non payment of rents by owner? our group has paid for annual memberships, punch cards, etc. and we don’t know what to do? any advice for us?
Hi Mary, thank you for contacting us. This is certainly a tricky situation. Do you know if the business has gone bankrupt? If so you may want to contact the bankruptcy trusteeâs website where you can file a claim against the business. You should know though that it can be difficult to get money back in these situations as there are typically a variety of creditors. Here’s more information from the Office of the Superintendent of Bankruptcy Canada: http://bit.ly/2nexccb
If you’re not sure if the business has gone bankrupt or not, you can do a search on the same website. Please note that it may cost you some money but here’s more information: http://bit.ly/2iWLfhV I hope this information helps you and other people in your group!
Is it legal for a gym to add a large fee (sometimes worth more than the entire service contract itself) for you to cancel?
Goldâs Gym in BC has a $299 cancellation fee for cancelling the contract even though you state that we should be able to cancel at no cost to us.
Hi Matt, thank you for posting your question. Whether a cancellation fee is allowed or not depends on what type of contract you signed. In your case, it would be better if we could see a copy of your contract, so would you be able to fill out our complaint form and also send in your contract? Our online complaint form can be accessed here.
Can I cancel my Krav Maga membership if they changed their membership prices?
I signed a 1 year contract for monthly $119 and after about 5 months they changed all members to weekly tuition which comes to about $149/month.
They included Fitness and Fight classes, but I was never interested in those anyway.
Hi Kaytee, thank you for reaching out to us here with your question. If a business has changes the services offered, it can be considered a material change by the supplier, in which case the consumer is within their rights to cancel. That said, the laws we’re responsible for don’t speak directly to price changes as being considered as a material change. Even so, I might suggest trying that route regardless. Please fill out and send the business this form available on our website.
To cancel your contract based on material change in the circumstances of the business, print off and fill out our cancellation form and send it directly to the business. Send the form and your proof to the business in a way that allows you to get proof of delivery, like registered mail, fax or email.
Keep copies for your records and be sure to follow up with the business. It is always a good idea to confirm a contract cancellation; the law gives the business 15 days to respond.
If you are still having trouble cancelling and getting your refund, please either give us a call at 1.888.564.9963 or fill out a complaint form on our website and we can assess the situation further.
Best of luck and please let me know if you have any questions!
I purchased a class drop in punch pass at a boutique style bootcamp in town. I have not used my pass as I live out of town ( I lived out of town when I purchased it). Can I ask the owner for a full refund? Does this fall under the “continuing services contract”?
Thank you
Hi Kristin, punch cards are definitely tricky but if you have always lived out of town, the rule based on the continuing services contract law would not apply. In general, you would have to move 30km or more after purchasing a membership or signing a contract. So in your case, you may want to talk to the business owner and see if they would give you a refund or even a partial refund. This would be completely up to the business owner. We’ve written a blog post about “how to write an effective complaint letter“, hopefully the post can offer you a few tips when communicating with the business owner. Good luck, Kristin!
Hi there ,
I am a student and I joined Steve Nash in September and just went for a month ..I forgot to cancel their memebership and yesterday I got a call from collection agency to pay $300 .I earn $1000 per month and spend it on my basic needs .I do not wish to pay $300 for the services which I never used however they say since I have signed the contract I would have to .Please help.
Hi Aryan, thanks for your question. That sounds like a frustrating situation. Unfortunately, when you sign up for a membership and do not cancel, businesses have the right to charge you until you do. This information was likely laid out in the contract you signed, which is why it’s so important to read the fine print and keep track of important dates. While there are certain situations where you can cancel your contract under the laws we administer, none of those criteria appear to apply to your situation. If you would like the calls from the collection agency to stop, you can request that they communicate with you in writing only. To do this, you must notify them in writing (use our printable form), or notify them by email (use our online form). Send your written notification in a way that gives you proof of delivery, such as registered mail, fax, or email. Keep copies for your records. Give the collection agency three to five business days to process your request.
With all that said, you are still required to pay your debts – even if the collector is communicating with you in writing only. Please let me know if any of this is unclear. If you would like to call us for clarification on any of this, our number is 1.888.564.9963. Thanks!
Hi,
I have joined a boxing gym to participate in tournaments. However, I was told that the gym’s management changed its style and will not participate in tournaments for a while. Do I have the right to cancel my membership?
There is a payment for 50% of the remaining cost due to cancellation though.
Please inform what I can do.
Thanks
Hi A, thanks for your question. If the business has changed the services that were originally offered, it is considered a material change by the supplier. For example, if the business has closed or moved, or an amenity like a pool is no longer available you have the right to cancel and get a refund. While I can’t say for sure that your situation applies, as you mention the gym won’t be participating in tournaments for a while (I’m not sure if a temporary change applies), you may still be interested in attempting to cancel due to material change. Feel free to check out this section of our website for more info. I’ve shared some of the content from that part of our website below.
To cancel your contract based on material change in the circumstances of the business, print off and fill out our cancellation form and send it directly to the business. Send the form and your proof to the business in a way that allows you to get proof of delivery, like registered mail, fax or email.
Keep copies for your records and be sure to follow up with the business. It is always a good idea to confirm a contract cancellation; the law gives the business 15 days to respond. If you’re still having trouble cancelling or getting a refund you can contact us directly at 1.888.564.9963.
I hope this helps and best of luck, A!
Hi,
Do ski area season passes fall in this category? I bought a pass at a Vancouver local hill for next year but may be moving to a different town (Vancouver to Victoria). Does the 30km rule work in this case?
Their website mentions it is non transferable and non refundable.
Hi Miguel, this is a very good question! You may be able to cancel it using our form (it’s located on this page under “My situation has changed. Can I cancel?”) but it would be helpful for us to have more details and possibly see the contract (or the terms and conditions). Would you be able to call us at 1.888.564.9963 or email us (info@consumerprotectionbc.ca)? Thanks!
Hi đ
I signed a 2 year contract with golds gym because of the towel service/ showers and the 24 hour availability. Due to covid restrictions those services and hours are no longer available. They had a curiosity hold which has now finished. I am unable to attend the gym with the restricted hours. Would this qualify as material change by the supplier?
Hello and thank you for contacting us! Your situation does sound like material change by the supplier, but we would like to get more details from you before we confirm. Would you be able to submit a formal complaint to us using our online form? Here’s the link. Once submitted, one of our team members will get in touch with you. Thank you!