How to Exercise Your Rights Against Unfair Gym Contracts

This article originally appeared on Avvo.com.

It’s a new year, and you’re ready to set out on a healthier lifestyle, complete with a shiny new membership at the local gym. Great! However, it is not uncommon for health clubs, particularly those with higher-than-average membership rates and dozens of amenities, to gouge patrons with fees, lock-in clauses, and unfair contract terms. This New Year, consider the following tips as you shop for your membership, and be mindful of hidden provisions that may work to your disadvantage should you need to terminate or transfer.

What to expect when you sign up

Your gym understandably needs to protect itself – after all, business is business. Therefore, you should expect certain terms in a standard membership contract. Of course, you must agree to a monthly or annual payment term. The contract should clearly state the length of the contract, as well as whether the contract will automatically renew at the conclusion of the monthly or yearly term.

In addition, you will likely be required to agree to some sort of early termination fee, a standard contractual practice across most industries designed to help businesses alleviate the cost of a contract breach mid-term. Lastly, your contract may require you to make some sort of payment up front, which is either a credit toward your regular payment or a flat fee assessed by some clubs for the administrative tasks associated with onboarding a new member.

What to avoid: Empty promises and sneaky clauses

According to the Better Business Bureau, complaints against gyms rose 20 percent in 2014, topping out at over 80,000 for the year. The following are some gym contract pitfalls to avoid:

• Empty verbal promises: Gyms often employ in-shape, fit-looking front-end staff members to seal the deal with potential clients. This strategy often involves high-pressure sales tactics or verbal promises of certain perks along with the gym membership. Perks are great, as long as the promise is committed to writing and included in the language of the contract. Verbal promises made prior to the execution of an agreement are not generally enforceable in a subsequent dispute if there is no record of the statement within the agreement itself. So, whatever the sales representative promises you, get it in writing.

• Clarify automatic debits: Businesses across all industries love to sign customers up for automatic withdrawal. This ensures payment of the monthly membership fee and presents an annoying hassle for customers wishing to cancel or terminate their contract. Many times, customers will let the monthly debit continue even if the interest in the membership has ceased. If you are wary of automatic debit, insist on paying each month instead, a step that could save you a great deal of money in the long run.

• Double-check the duration: Many states have limitations on the length of time a contract can last under an initial agreement. In Ohio for instance, gym contracts cannot exceed three years. Moreover, one of the top complaints lodged against gyms involves the automatic renewal of gym contracts at the end of the term — supposedly for your convenience — which is often buried deep in the fine print. Some gyms contracts even require customers to notify the gym in writing 30 days or more before the final date of the contract, or it will automatically renew.

• Confirm cancellation terms: Some gyms allow customers to terminate the agreement mid-term if the customer must move away from the area or is experiencing some sort of hardship. When reviewing the terms of your contract, inquire exactly what you must do to exercise your right to cancel, as some places require written proof of relocation.

Let others do the heavy lifting 

If you are having a difficult time with your gym contract or are continuing to see unauthorized debits or the assessment of fees, it may be time to contact your state’s attorney general about the issue. California, North Carolina, New Jersey, Washington, Maryland, New York, Oregon and Ohio are just some of the states with specific laws targeting the health club industry – statutes which include hefty fines and penalties for any gym that fails to comply.