As times change, development of the fitness industry grows increasingly diverse. Disputes, however, are also rising in number. In addition to facilities and exercise equipment, those in the industry also offer "fitness instruction classes." To meet the needs of consumer markets and strengthen and protect consumer rights and interests, the Ministry of Education has issued the "Mandatory provisions to be included and excluded in the Standard Form Contracts for Fitness Instruction Services (Draft)" and the "Mandatory provisions to be included and excluded in the Standard Form Contracts for Fitness Centers (Draft Revision)." The drafts had been passed by the Executive Yuan’s Consumer Protection Committee (CPC) and had been approved by the Executive Yuan. Issued to the Ministry of Education and announced by the same ministry, they have come into effect on January 1, 2022.
Important guidelines regarding standard form contracts for fitness instruction services and fitness centers are as follows:
I.Clearly state fitness service information
Fitness industry (including fitness centers and fitness instructors) should clearly state contract start and end dates, service items (including exercise equipment and number of fitness classes), total cost, student-instructor ratio, and the names of designated instructors in the contract. Additionally, important information such as fitness venue capacity, exercise equipment that is unavailable (under repair), and fitness venue public liability insurance, should all be clearly disclosed.
II.Put an end to loans disguised as installment plans
When those in the fitness industry bring consumers into loan agreements with third parties (such as financing companies), this can create an unfair situation in which consumers must continue making loan installment payments even when those in the industry are unable to continue providing fitness services due to poor business operation. To prevent these situations, the contract should clearly stipulate that at such a time consumers may cease repayment of the loan to a third party.
III.Add equity guidelines in response to the pandemic
To encourage consumers to overcome hardships together, and refrain from exercising their right to terminate contracts in the event that those in the fitness industry are unable to operate due to the pandemic, thus exacerbating the difficulties faced by those in the industry, the following provision has been added: Should a community outbreak occur when the Central Epidemic Command Center has been upgraded to level 1 , consumers possessing memberships at fitness centers located in the special municipality or county (city) of the affected community may immediately apply for membership suspension. During the suspension period, monthly fees shall be waived and membership validity shall be extended, as an alternative to allowing consumers to terminate their contract and request refund of the advance fee payments made to those in the fitness industry.
IV.Strengthen various reasons for contract termination
To reduce consumer disputes arising from termination of contracts, it should be clearly stipulated that under the following circumstances, when consumers exercise their right to terminate the contract, those in the fitness industry shall refund an amount to the consumer in proportion with the remaining unused time and unprovided services and classes: the business premises are relocated; the overall area of the business premises is reduced by at least 20%; the amount of exercise equipment or instructors provided is less than 20% of that agreed upon in the contract; or other affairs attributable to those in the industry. If indeed attributable to those in the industry, consumers may also apply for liquidated damages. However, should the contract be terminated for reasons not attributable to the consumer or those in the industry, then those in the industry shall refund an amount to the consumer in proportion with the remaining unused time and classes, but may not solicit a service fee, liquidated damages, or any other fees from the consumer.
V.Guidelines for handling gifts from those in the industry
To prevent consumer disputes arising when those in the industry gift products (memberships) to entice consumers into signing a contract, and then afterwards include the cost of those gifted products (memberships) in calculating fees when consumers wish to terminate the contract, the following shall be clearly stipulated: When those in the fitness industry gift products, they shall not ask for the value of those products from consumers when terminating the contract. If memberships are gifted, the gifted memberships shall be included in the relevant calculations.
VI.Require those in the industry to provide a mechanism ensuring contract compliance
Those in the industry shall provide a mechanism for ensuring contract compliance when accepting advance payment of 50% of the total cost. However, those accepting payment per class or per month, or advance fee payments that amount to less than NT$5000, are not subject to this restriction.
The DCP reminds those in the industry that the contents of the service contracts they provide must comply with the guidelines listed above. Those in violation, and who have not rectified in the given period mandated by the competent authorities, may be imposed a fine between NT$30,000 and NT$300,000 in accordance with Article 56-1 of the Consumer Protection Act. Those who do not rectify after being mandated to do so again in a given time period shall be imposed a fine between NT$50,000 and NT$500,000, and may be fined per offense.
To avoid fitness-related consumer disputes, the DCP again reminds consumers to take note of the following matters when signing fitness contracts (including fitness instruction contracts):
I.Do not let over-enthusiastic marketing, special discounts, or personal feelings rush you into signing a contract.
II.Before signing a contract, it is essential that you first consult the "Mandatory Provisions to be included and excluded in Standard Form Contracts for Fitness Centers" and "Mandatory Provisions to be included and excluded in Standard Form Contracts for Fitness Instruction Services" published by the central competent authority (the Ministry of Education). Make good use of the three-day contract-reviewing period to carefully understand the contents of the contract.
III.It is essential that you pay attention to the contract period: Pay special attention to whether fitness centers have a stipulated usage period. When canceling a contract after this stipulated usage period ends, those in the industry may not collect related fees.
Finally, the DCP reminds consumers that should they encounter fitness-related consumer disputes, personal rights and interests can be protected by filing a complaint with the consumer service centers of consumer protection organizations and local authorities, or online at the CPC website (https://cpc.ey.gov.tw).