Business Practices Committee Report 70Fitness IndustryNotice 1816 of 2000 |
Department of Trade and Industry
Consumer Affairs (Unfair Business Practices) Act, 1988
I, Alexander Erwin, Minister of Trade and Industry, in terms of section 12 (6) (a) (iii) of the Consumer Affairs (Unfair Business Practices) Act, 1988 (Act No. 71 of 1988), hereby give notice that I intend publishing the following notice in the Government Gazette. Interested parties are hereby invited to comment on the proposed notice. These comments must be directed to the address which appears at the end of the proposed notice.
Notice in terms of Section 12(6)(a)(iii) of the Consumer Affairs (Unfair Business Practices) Act, 1988
I, Alexander Erwin, Minister of Trade and Industry, by virtue of the powers vested in me by section 12(6) of the Consumer Affairs (Unfair Business Practices) Act, 1988 (Act No. 71 of 1988), and after having considered a report by the Consumer Affairs Committee in relation to an investigation of which notice was given in Notice 107 of 1998 in Government Gazette No. 18618, dated 23 January 1998, which report was published in Notice 1815 of 12 May 2000 in Government Gazette No. 21161, promulgate in the public interest the notice in the Schedule.
Schedule
In this notice, unless the context indicates otherwise--
"fitness centre" means a facility at which fitness services are provided, but does not include outdoor sport and recreation facilities or unsupervised activities;
"fitness services" means any services relating to a pre-exercise evaluation; individual fitness programmes; group fitness programmes and the provision of fitness equipment at fitness centres for the use of consumers;
"supplier" means a person or business, other than an employee, who offer services and equipment in fitness centres;
"harmful business practice" the offering, selling or renewal of membership agreements by suppliers for periods exceeding:
| a) | one year, should the supplier have an existing lease agreement on the premises, that exceeds one year at the time of the signing of the membership agreement and |
| b) | the term of the unexpired existing lease agreement on the premises should that term be less than one year at the time of the signing of the membership agreement. |
| c) | the exclusion of the following provision (without alteration) in the membership agreements entered into by a fitness centre and a member: |
"You are entitled to terminate your membership within five days of the date on which you signed this agreement, excluding the day of signature as well as Saturdays, Sundays and public holidays. This intended termination must be conveyed in writing and must be received by any employee of the fitness centre, within the five-day period, at the physical address where the agreement was signed. "In writing" includes the use of facsimiles, telexes, telegrams or phonograms by the member. Upon termination of the agreement as set out above, the fitness centre shall, within five days as defined above, refund all payments made by the member or reverse any credit transaction".
"the parties" are fitness centres and suppliers as defined above.
| 1) | The harmful business practice is hereby declared unlawful in respect of the parties. |
| 2) | The parties are hereby directed to-- |
| a) | refrain from applying the harmful business practice; |
| b) | refrain at any time from applying the harmful business practice. |
On the recommendation of the Consumer Affairs Committee I may, in a particular case, in terms of section 12(6)(c) of the Act in writing, grant exemption from a prohibition contemplated in this notice to such extent and for such period and subject to such conditions as may be specified in the exemption. Such applications for exemption must be directed to:
The Secretary, Consumer Affairs Committee, Private Bag X84, PRETORIA, 0001.
(For attention: Ms Lana van ZyI) [Fax: (012) 320-0579]
A Erwin
Minister of Trade and Industry