Gym Not Honouring Lifetime Rate

devondale16 on 23/02/2022 - 11:04
Last edited 23/02/2022 - 13:16 by 1 other user

Hey all, I have been with one of the big national gyms for over 6 years now. About 3 times I have changed contracts, the most recent being the 2020 EOY sale. This contract was the same as the other ones I had been on (different price), where is was a 12 month lock in and then the same price indefinitely afterwards. My contract states one of the terms are that it includes "lifetime rate guarantee".

Now 12 months on I have been contacted saying the 12 months is up and I have to rejoin at the regular price. I have contacted the head office and was told "we don't do that price anymore" when querying about the lifetime price (and no other explanation).

I'm not sure what else I can do and wonder how many others have had this happen to them. Anyone had anything similar happen to them or any advice?

Sports & Outdoors Gym Membership

Comments

  • Tech5 on 23/02/2022 - 11:11
    +21

    If you signed a contract that literally says your rate will not increase, reply to them in an email highlighting this. Let them know that if the contract is not honoured, you will contact ACCC and VCAT/NTCAT/What ever version it is that you have.

    • Caped Baldy on 23/02/2022 - 13:47
      +12

      Tell em that Tracy Grimshaw will be on to them.

      • djones145 on 23/02/2022 - 15:16
        +2

        www.news.com.au!

  • Porker on 23/02/2022 - 11:14
    +2

    Did they send you any other documentation regarding a variation of the original contract?

    'Lifetime rate guarantee' has different meanings too - is there any definition or clarification on what this term means?

    • devondale16 on 23/02/2022 - 11:24

      No - I have not got any other documents from them. And no it does not clarify the meaning.

      • Porker on 23/02/2022 - 11:43
        +9

        Hard to say then.. and without seeing the clause in full or the context of the term, it's even trickier. As a visitor, you'd want the meaning to mean you get the same rate for your 'lifetime', but what if their intention was the life of the contract. ie. deliberate wording to catch you out.

        Just like Chemist Warehouse 'Australia's Cheapest Chemist' in big writing, but just prior to it are the words 'Is this?'

        Back in the day there were two magazine's having a legal bung fight over both using the term 'Australia's Number 1 magazine'. It came out that one meant they were the no. 1 Australian magazine sold in OZ, where the other was the no. 1 Australian magazine sold worldwide.

        I'd say read the contract entirely to see what the 'intention' of that meaning, rather than literal, and see if it still makes sense to pursue legally.

        • markathome on 23/02/2022 - 12:41
          +8

          You have totally blown my mind with that Chemist Warehouse example. I never noticed it before.

          • [Deactivated] on 24/02/2022 - 14:40

            @markathome: I just went to chemistwarehouse.com.au and they have changed it. It now says "stop paying too much!!"

        • Almost Banned on 23/02/2022 - 14:55
          +1

          It is misleading or deceptive conduct to make a representation as to future matters without reasonable foundation.
          It is misleading or deceptive conduct to represent to consumers a state of being which is false.
          It is misleading or deceptive conduct to advertise something in huge letter while modifying that meaning in tiny letters.
          Bun fight.

    • markathome on 23/02/2022 - 12:40
      +3

      'Lifetime rate guarantee' has different meanings too - is there any definition or clarification on what this term means?

      Not really. I think you'll find the courts will side with devondale16 on this one - it is the lifetime of the person who took out the contract (assuming the gym remains in business). Only exception would be if they defined it to be something different in the contract. In which case it probably has to be something reasonable. That is, I can't set-up a sales contract for $500 then down the bottom of the contract define $1 for each dollar mentioned in the contract to be equivalent to $10,000 AUD.

      • Noblejoker on 27/02/2022 - 18:31

        Lifetime of the OP OR Lifetime of the contract - I suspect the answer is the latter, They cancel that contract and require a new one and voila!

  • Mokr on 23/02/2022 - 11:15
    +4

    Try to contact as many other gym people on the same contract as well.

    • devondale16 on 23/02/2022 - 11:24

      Unfortunately the few other members I know are on different contracts.

  • popsiee on 23/02/2022 - 11:17
    +1

    Hehe if a Gym was offering a lifetime rate that would tell you unless you are a Sucker they are going to shut down and reborn . :)

    • devondale16 on 23/02/2022 - 11:27
      +1

      Every contract I have gotten from them has had this clause and never been an issue. Just to clarify I was not expecting this price 30 years later, but definitely expect it 12 months on…

  • 7ekn00 on 23/02/2022 - 11:19
    +3

    Money talks, ask them to honor it, or go elsewhere ;)

    • devondale16 on 23/02/2022 - 11:31

      During the call I did say that and they did not care if I left. Unfortunately due to living arrangements I spend time in 2 different suburbs and they are the only gym that is in both. But I do think going elsewere might be the best option.

  • Jimothy Wongingtons on 23/02/2022 - 11:30
    +2

    If you like the gym, just highlight the contract regarding lifetime pricing. After all they'd throw you under the bus too if you wanted to have any variation on contract that favoured you.

    • devondale16 on 23/02/2022 - 11:35

      Exactly what I did on the phone and was told that its not applicable anymore. I sent a follow up email and got no reply.

  • singlemalt72 on 23/02/2022 - 11:32
    +1

    In previous years on similar contracts did the price change after 12 months?

  • AndyC1 on 23/02/2022 - 11:32
    +2

    Call and ask to make a formal complaint about them not honoring their contract.

  • Peter Enis on 23/02/2022 - 11:40
    +5

    Maybe it just meant no rate rises for the life of the contract (12 months).

    • cypher67 on 23/02/2022 - 11:43

      Beat me by a couple minutes - exactly this

    • Porker on 23/02/2022 - 11:45

      ^^ This OP.. I raised the same concern in earlier post - read the contract as a complete document to see what the intention of that term is, not just the literal meaning or one that you want it to mean

    • devondale16 on 23/02/2022 - 11:53

      Good point. I did clarify with the staff member that signed me up that it would continue for the same price (but that was just verbal).

      What just gets me is if that had explained that when calling up and querying there wouldn't of been as big of an issue. Instead of telling me "its not applicable anymore".

      • AndyC1 on 23/02/2022 - 12:07
        +1

        Verbal means nothing.

        • Almost Banned on 23/02/2022 - 14:56
          +4

          actually, verbal means spoken, or in the form or words.
          An oral representation is just as actionable as a written one, just may be harder to prove.

          • AndyC1 on 23/02/2022 - 19:09

            @Almost Banned: Good luck without taking it to court.

          • TilacVIP on 24/02/2022 - 08:36

            @Almost Banned: Really no way to prove unless it was voice recorded, and even then it could be hard… them just denying it was them on the recording.

            Once you are these extremes, you may as well pay up if you like the gym or move on.

  • Davo1111 on 23/02/2022 - 11:46
    +1

    you've written above that you dont actually have any documentation. So your interpretation of "lifetime rate" is worthless.

    For argument sake, i could say the price was constant for the lifetime of the contract, that being a year.

    Dont continue the contract, or pay the new fees.

    • devondale16 on 23/02/2022 - 11:55

      As mentioned above - I did clarify with the staff member that signed me up that it would continue for the same price (but that was just verbal). So I understand that I cannot use that as there is no proof. Would of avoided most of the issue if they had explained it when I called and queried.

      • Crow K on 23/02/2022 - 12:11
        +2

        Unfortunately whatever the person says to you doesn't vary the document you are signing. They could have told you it granted eternal life, but the agreement is whatever is in ink and paper.

        (Yes, the agent is being deceptive and there are separate punishments for that, but the contract itself is not affected)

  • Richmond Tigers on 23/02/2022 - 12:11
    +1

    Did they clarify what the "lifetime" is based on? It could be the lifetime of a cartel snitch or something.

  • bobbified on 23/02/2022 - 12:19
    +1

    Just out of curiosity and to get some more context, what is the price difference between old and new prices?
    Surely from a business point of view, it's better to keep a member than just let the money walk out the door. Especially since the cost to maintain a gym member is minimal so it's almost like free income.to them.

    • devondale16 on 23/02/2022 - 12:52

      Approx $150 a year ($3 a week) difference.

      • bobbified on 23/02/2022 - 13:14
        +2

        $3/week?? I can't believe a Fitness First brand won't budge over $3/week! It's not like a random request out of nowhere either - it's in their own contract.

        It would be interesting to put a post on your Facebook (so they can't delete it) and tag them in it just highlighting how funny it is they're reschinding their contract terms over $3/week..I would like to hear what they have to say! (Don't make yourself sound like a Karen though!)

        • devondale16 on 23/02/2022 - 14:00

          Agree. That’s why I was pretty disappointed especially being that I’ve been a member for so long.

          • Davo1111 on 25/02/2022 - 01:24

            @devondale16: so are you leaving or not?

            • devondale16 on 25/02/2022 - 09:54

              @Davo1111: Yep, after looking around I got a similar price at an independently owned gym that has a few locations.

  • brawndo on 23/02/2022 - 12:44

    Which gym is it?

    • devondale16 on 23/02/2022 - 12:54
      -2

      One of the Fitness and Lifestyle group brands.

  • Baysew on 23/02/2022 - 13:24
    +1

    where is was a 12 month lock in and then the same price indefinitely afterwards.

    I don't get what you are locking in for 12 months. If it was a lifetime rate, there wouldn't be any need to reference 12 months.

    • PissLUR on 23/02/2022 - 13:53
      +1

      the minimum term is 12 months.

    • devondale16 on 23/02/2022 - 13:59
      +2

      Most gyms (including my previous 2 contracts at this gym) have the cheapest contract have a minimum 12 month term where if you want to leave during that time you have to pay an exit fee. Then after the 12 months you continue paying the same fee but can leave anytime without a fee.

  • Luo18740 on 23/02/2022 - 13:44

    Have you actually clarified what period of time the same rate applies for 'indefinitely'?

    It seems unlikely a gym would let you stay a member on the exact same rate forever, and Lifetime Rate Guarantee is most likely a weasely term that means the rate won't rise above CPI or something similar.

  • contrafibularities on 23/02/2022 - 14:46
    +2

    Submit this to the ACCC online via a web form and include a copy of the contract, I suspect they will be interested in this.

    • Davo1111 on 25/02/2022 - 01:24

      i suspect they wont care, OP doesnt even have a copy of the contract.

      • devondale16 on 25/02/2022 - 09:55

        I do have a copy of the contract. The contract just doesn’t define the definition of lifetime on it.

        • Davo1111 on 25/02/2022 - 10:10

          Same result

      • contrafibularities on 25/02/2022 - 10:44
        +1

        You’re right if it was a small business but I have a feeling they might care because gyms have been in the radar recently and they are interested in what the bigger chains do.

        It’s likely to be misleading and deceptive to offer a lifetime price guarantee and then renege on it. Consumer law will say the overall impression is misleading whether the term in the contract is defined or not.

        • Davo1111 on 25/02/2022 - 11:05

          Lifetime for the length of the contract, that being 1 year.

          • contrafibularities on 25/02/2022 - 11:43

            @Davo1111: Do you really think that lifetime could be reasonably interpreted to mean 1 year? I can assure you at law it doesn’t. They could have said the rate is guaranteed for the life of the contract, which is the standard way to describe it. Anything else sounds seriously misleading.

            • Davo1111 on 25/02/2022 - 19:10

              @contrafibularities:

              Do you really think that lifetime could be reasonably interpreted to mean 1 year?

              yes, i do. I dont think anyone would think in 60 years time i can pay the same price that i agreed to today, with no adjustment for inflation/cpi etc.

              Anything else sounds seriously misleading.

              lol, gyms are well known for their ethics. /s

  • mskeggs on 23/02/2022 - 20:07

    If you were in NSW I would say raise a complaint with fair trading saying you were misled. I don't know the SA equivalent.
    Here they will ask you a few questions then ring the gym for their side of the story.
    If they say what they said to you, they will be told they made a misleading claim and be advised they have to honour it.

  • BeamMeUp on 24/02/2022 - 10:18

    Call/email them and ask what the contract clause lifetime rate guarantee means. Is there a corporate body, ask them as well. I’m interested to know. Are they meaning lifetime of your contract? If so I recon that’s pretty deceptive.

  • OzHunterNSW on 24/02/2022 - 14:28

    Rather than assessing your contract…. it might be time to assess yourself.

    Have you noticed any benefits for going to the guy for 6 years.

    Do you think you could do many of the exercises at home.

    Trust in yourself…. buy some basic equipment and start a routine at home. Save your money

    • devondale16 on 25/02/2022 - 10:03

      Had a bit of a look and even a “cheap” rack and weight combo costs more then a couple years of a membership. Combine that with space needed at home/ living in multiple places, a gym really works for me better. Appreciate the suggestion though.

  • Hugh G Rection on 02/03/2022 - 18:22

    its understandable the rates going up because of covid. everything has changed now, and all prices are up. you enjoyed 6 years at a great rate. they honour your cheap rate, they will go out of business. so its better you pay a little more and they stay in business, instead of you paying the cheaper rate in full, and they go out of business next month and not refund you anything.

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