Gym operators face scrutiny, regulation

       The run-away fitness industry is about to be hobbled by the Office of the Consumer Protection Board which is investigating ways to clean up and standardise the contracts they offer to clients.
       Having received 748 complaints of unfair and deceptive practices from gym clients since 2005, the OCPB called a public hearing on Monday to discuss the framework for new regulations to control contracts between gym operators and their customers.
       The meeting heard fitness industry contracts were unregulated and there were no guidelines to follow.
       That meant operators had complete freedom to insert their own conditions into contracts which could put customers at a disadvantage, OCPB deputy secretary-general Teerawat Chantarasomboon said.
       "What they are doing is legally correct,but it's unfair," he said."Now it's time the OCPB made this industry a contractcontrolled business."
       The OCPB had received complaints from people lured into signing or paying tens of thousands of baht for annual or lifetime contracts without being fully informed of their contractual obligations.
       Contract forms were usually presented in tiny print which made it difficult for the clients to inspect.
       Consumers were also deceived by sales representatives' tactics by being told,for example, to pick up a free voucher only to be pressured into signing a contract. Many were given false promises.
       The majority of customers were cajoled into accepting a one-year contract and were not allowed to terminate it.
       Many had their credit cards debited without their consent. In one case, a lifetime member was told he could end the contract only if he were dead or handicapped.
       There were also complaints about a lack of standard prices for the same packages offered by each operator. Many clients complained about poor aftersales service and forced changes to packages they had paid for.
       Virot na Bangchang, chairman of the Consumer Power Foundation, demanded the OCPB regulate the industry to bring about fairer contracts and give clients more negotiating power, including the right to terminate a contract.
       Mr Teerawat said the bureau would review the complaints and input from businesses. Then it would issue a noti-fication to stipulate certain mandatory terms and conditions in contracts.
       When the regulations were passed into law, it would make the fitness industry contract-controlled like real estate or financial lending services.
       Eric Levine, founder of the listed fitness company California WOW, said it was too early to comment on the move but claimed there was nothing wrong with the industry.
       "There are not many complaints,"he said."Our contracts are OK in 13 countries for over 30 years."
       OCPB secretary-general Nirote Charoenprakob said it was not a question of the number of complaints but the issue of consumer rights.
       "Even if there is just one complaint,we'd investigate it and demand changes if there were unfair conditions," he said.