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ARTICLE · 16 MAY 2017

How Some Gyms Are Trying To Avoid Rights Under Gym Contracts

Read your contracts carefully! Beach season is coming, which means many gyms are launching "free" trials in order to entice customers to enroll in lucrative contracts at their gym.

CanadaCorporate/Commercial Law

Read your contracts carefully! Beach season is coming, which means many gyms are launching "free" trials in order to entice customers to enroll in lucrative contracts at their gym. However, many consumers looking to get in shape are unaware of the recent trend by gyms to classify their contracts as "student tuition agreements" in order to avoid contractual obligations to their members.

Why does the classification matter?

Organizations such as gyms, sports clubs, dance classes, martial arts clubs and hot yoga studios, previously had their contracts classified as "personal development services." Since many consumers are vulnerable to unscrupulous practices in the area, the government has introduced the Consumer Protection Act to regulate these services.

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