Difference between revisions of "Fitness Centres, Yoga Studios, and Other “Continuing Service Contracts”"

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{{Dial-A-Law Blurb}}
{{REVIEWEDPLS | reviewer = [http://davisonnorth.ca/personnel/dean-davison/ Dean Davison], Davison North Law|date= January 2020}} {{Dial-A-Law TOC|expanded = consumer}}
Thinking of joining a fitness centre or yoga studio? Or taking other ongoing classes? Special rules apply to these types of contracts. Learn about these arrangements, including how to get out of them if you're not happy.


{{Dial-A-Law TOC|expanded = credit}}
==What you should know==
This script discusses future performance contracts, fitness club memberships, and other similar contracts. It also explains how you can cancel if you want to back out. Then it discusses time-shares and time-share contracts.
===Special rules apply===
A service you get that that continues over time — like a gym membership or self-defence lessons — is legally different from a one-shot deal like a haircut. These agreements are called '''continuing service contracts''', and there are special rules for them.


What is a future performance contract?
===The contract must include certain information===
An agreement where you don’t receive the goods or services immediately, or you don’t pay in full upfront, is a future performance contract under the Business Practices & Consumer Protection Act. Examples include a contract for home repairs and a contract to join a fitness club. But contracts under $50 are not included.
When you sign up, make sure the contract has the following:


What a future performance contract must include
* the name, address, and phone number of the service provider — and the email address too if you bought online
The Business Practices & Consumer Protection Act lists all the information the contract must include. It must be in writing and you must have signed it. And it must include:
* detailed information about the product
* the '''total''' price, with a breakdown of taxes and other charges
* your cancellation rights
* the amount due each payment period — weekly, monthly or whatever period is in play
* if it’s for classes, a description of when they will take place, and any details on missed or make-up classes


The supply date.
===The contract can’t be for more than two years===
The date when the supply of the goods or services will be complete.
A continuing services contract '''can’t extend beyond two years'''. But it can include a section on renewals. If it does, you can renew by consenting in writing within one month of the contract’s expiry date.
The name, address and telephone number of the seller.
A description of the goods or services.
The costs, including taxes and shipping charges, plus the total price.
A detailed statement of the payment terms.
Cancelling a future performance contract
You must be given a copy of the contract within 15 days after you sign it. If the copy you get doesn’t have all the things that the Business Practices & Consumer Protection Act requires, then you have up to a year to cancel it. Consumer Protection BC has information and cancellation forms to complete and send to the business.


Continuing services contracts
Be careful if they try to “automatically” renew your membership via ongoing credit card charges. Online companies with a subscription service (think: Amazon Prime, or Netflix) have contracts with automatic renewals. Bear in mind that since these companies have head offices outside of BC, and operate online, it can be difficult to enforce our laws against them.
With a continuing services contract, you receive services over a set time, not all at once. It is limited to dance lessons, personal training (like boot-camp), weight-loss programs, self-defense lessons, gym memberships, and travel-club memberships. A continuing services contract cannot be for more than 24 months.


Cancelling a continuing services contract
===You can cancel the contract during the cooling-off period===
In the first 10 days—you have up to 10 days to cancel a contract after you sign it and get a copy of it. In fact, the contract has to say that you have this right to cancel any time within the first 10 days.
After receiving a copy of the contract, you have a 10-day '''cooling-off period''' to change your mind. You can back out ''for any reason'' during this time. The business must give you a full refund within 15 days.


Partway through a contract—you can cancel a continuing services contract if there’s been a material (significant) change in the services that the seller was going to provide or in your personal situation. For example, you signed up for tango lessons and the seller now offers only tap-dancing classes. Or the seller moved their dance studio. Or you moved more than 30 kilometers away and the business can’t provide the same service in your new location. Or you signed up for boot-camp but broke your leg. In each case, you would have to show what the material change was (for example, proof of your new address or medical documentation explaining why you can no longer participate in the activity).
Be careful with “free trials,” especially online. With these, you give your credit card info up front but aren’t billed until the trial period is over. The problem is, people are busy. We forget these dates. Business count on it! Studies show that almost half of all people who accept free trials forget to cancel before the auto payments kick in. Half! Don’t end up paying for something you won’t use.


If you cancel because of a significant change in your personal situation, you can get a pro-rated refund based on how much of the service you’ve used, minus 30% to cover the seller’s costs. If you cancel because the seller’s services changed, you can get a pro-rata refund without any deduction.
===You can cancel if there has been a material change in your circumstances===
Even after the cooling-off period, you can still cancel one of these contracts if your circumstances have '''materially changed'''.


Consumer Protection BC has information and cancellation forms to complete and send to the business.
What might this look like? Maybe:


Direct sales contracts
* you broke your leg, so you can’t do a downward dog (or any pose, really) for several months, or
A direct sales contract is one that is signed at a place other than the seller’s permanent place of business, for example, at your home. But if you invite a supplier into your home more than 24 hours ahead, then any contract you sign with that supplier is not a direct sales contract. There’s a limit to the down-payment a seller can require in a direct sales contract. For example, a door-to-door salesperson who comes to your home and sells you a vacuum cleaner cannot ask for a down-payment of more than $100 or 10% of the purchase price, whichever is less.
* you moved to Vernon from Vancouver, and don’t intend to commute five hours every Tuesday evening to enjoy that painting class.


==What a direct sales contract must include==
Tell them your reason for cancelling, and be prepared to provide proof (such as a doctor’s note, or a bill from your new address). You’re entitled to a prorated refund, and the business can charge you a reasonable admin fee to process the cancellation.
The Business Practices & Consumer Protection Act lists all the information the contract must include. It must be in writing and you must have signed it. And it must include:
*The supply date.
*The place where the contract was signed.
*The name, address and telephone number of the seller.
*A description of the goods or services.
*The costs, including taxes and shipping charges, plus the total price.
*A detailed statement of the payment terms.


==Cancelling a direct sales contract==
We’ve covered a material change in your circumstances. What if the business changes things?
'''In the first 10 days'''—you have up to 10 days to cancel the contract after you sign it and get a copy of it. In fact, the contract has to say that you have this right to cancel any time within the first 10 days.


'''If a contract lacks a required part'''—if the direct sales contract you sign have all the things that the Business Practices & Consumer Protection Act requires, then you have up to a year to cancel it.
Say the gym promises spin classes, but then cancels all of them. Or the yoga studio moves to Vernon, but you’re still living in Vancouver. In these circumstances, you can cancel and get a prorated refund.


If you don’t receive the goods or services—if you don’t receive the goods or services within 30 days of signing the contract, you have up to a year to cancel. So if you don’t receive the promised vacuum cleaner within 30 days, then you have up to one year to cancel, as long as you don’t accept the goods or services later.
==Take action==


==Cancel in writing==
===Step 1. Do research===
It’s best to cancel a contract in writing—by email, fax, or registered mail. Or you can deliver a cancellation notice (the links for forms are in each section above) to the seller. Keep a copy of your written cancellation and proof that you delivered it within the allowed time.
Being a good consumer is equal parts proaction and measured reaction. (Sorry, that sounded like rocket science. It’s not.) The key thing is — be prepared, and be firm.


==Will you get your money back?==
Before you sign up for that great deal at the new fitness studio, read the fine print. Will the classes you’ve paid for in advance expire after a few months? Does the studio have a lot of negative online reviews?
If you cancel a continuing services contract or a direct sales contract within 10 days, you are supposed to get a full refund within 15 days after cancelling—even if you’ve already received the goods or started using the service. Once you’ve received your money back, you must return the goods.


==What happens if the seller doesn’t give you a refund?==
===Step 2. Be alert during trial periods===
If you try to cancel a future performance contract, including a continuing services contract, or a direct sales contract, and you don’t get a refund, contact Consumer Protection BC for more information and possible next steps.
There’s plenty of competition out there. Businesses will try to woo you with extra perks and services, or give you a free trial.


==What is a time-share?==
Again, read the fine print. After the trial ends, are you already committed to a one-year term? After the first month, do you have to pay more to access (let's say) the lockers, hot tub, and sauna? If it is unclear, ask. Do. Your. Homework.
A time-share is a legitimate form of owning an interest in property. Often, the time-share is for one week at a vacation resort. Typically, you go to a presentation, tour a condo unit, and then sign a contract. But before you sign anything, make sure the deal is right for you. And don’t sign a contract unless you understand it completely.


==Can you cancel a time-share contract?==
===Step 3. Keep the contract===
BC’s Real Estate Development Marketing Act says that if you make the contract in BC, and later decide you acted too quickly, you can back out of the contract if you cancel within seven days. This applies whether the time-share relates to property in or outside of BC. But—and this is very important—if you sign a deal outside of BC, say in Mexico for a Mexican time-share, BC’s Real Estate Development Marketing Act does not apply. Instead, the law of the country where you signed the deal applies.
We’re increasingly paperless, but keeping contracts is important. Ask the business to email you a copy. Or take a phone photo of each page for future reference. That way, if things go wrong (or if the business can’t find a copy), you’ll have back-up.


==More information==
===Step 4. If you decide to cancel, be firm===
Check with Consumer Protection BC or call them at 1.888.564.9963.
If you want to cancel because of a material change in your circumstances, or if you’re still within the 10-day cooling off period, first call the business or go in-person.
Check sellers with the lower mainland Better Business Bureau (604.682.2711) or the Vancouver Island office (250.386.6348). Check the Business Practices & Consumer Protection Act (also available at law libraries).


Be firm, but polite. Explain why you’re cancelling. You may have to speak to a manager. Make sure you get confirmation in writing that they’ve accepted the cancellation and the amount they’re going to refund you (if you’ve pre-paid).


[updated April 2015]
===Step 5. Followup in writing===
If the business continues to deny you a refund, write them a letter. Consumer Protection BC has a handful of handy templates: to cancel [https://www.consumerprotectionbc.ca/wordpress/wp-content/uploads/2017/06/Cont.-serv.-cancellation-within-10-days.pdf during the cooling-off period], [https://www.consumerprotectionbc.ca/wordpress/wp-content/uploads/2017/06/To-cancel-your-contract-because-of-your-change-in-circumstances-fill-out-this-form..pdf due to a material change for you], or [https://www.consumerprotectionbc.ca/wordpress/wp-content/uploads/2017/06/To-cancel-your-contract-because-of-changes-in-the-business-fill-out-this-form..pdf due to a material change for them].


----
===Step 6. Wait 15 days===
----
They have 15 days to give you a refund. If nothing happens by then, give them a call. Confirm they got your letter. Demand your refund.


===Step 7. Take to social media===
If the business still refuses to comply, take to social media to voice your concerns. Be accurate. Be truthful. (If you are not truthful online, you may expose yourself to being sued.) You may end up getting what you want. Companies are eager to protect their reputations.


==Who can help==
===Helpful agencies===
Is the business still denying your rights? If you need help with that or other consumer-related issues, consider getting in touch with the following agencies.
:'''Consumer Protection BC'''
:Assists with some consumer problems and contracts. Includes online complaint form.
:Call 1-888-564-9963
:[https://www.consumerprotectionbc.ca/complaint-assistant/ Start a complaint]
:[https://www.consumerprotectionbc.ca/ Visit website]
:'''Better Business Bureau'''
:Receives complaints about local businesses that are members.
:Call 1-888-803-1222
:[https://www.bbb.org/ca/bc Visit website]
:'''Competition Bureau'''
:Deals with complaints about false or misleading advertising.
:Call 1-800-348-5358
:[https://www.competitionbureau.gc.ca/ Visit website]
===Legal advice===
Affordable legal help does exist. (To be fair, two of these are options for help, and the third — the online tribunal — is a low-cost path to bringing a legal action.)
:'''Lawyer Referral Service'''
:Helps you connect with a lawyer for a complimentary 15-minute consult to see if you want to hire them.
:Call 1-800-663-1919
:[https://www.accessprobono.ca/our-programs/lawyer-referral-service Visit Website]
:'''Access Pro Bono's Free Legal Advice'''
:Volunteer lawyers provide 30 minutes of free legal advice to people with low or modest income.
:Call 1-877-762-6664
:[https://www.accessprobono.ca/get-legal-help Visit Website]
:'''Civil Resolution Tribunal'''
:Resolve disputes of less than $5,000 online 24/7 (no need for a lawyer!).
:[https://civilresolutionbc.ca/ Visit website]
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Latest revision as of 05:13, 11 October 2023

This information applies to British Columbia, Canada. Last reviewed for legal accuracy by Dean Davison, Davison North Law in January 2020.
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Thinking of joining a fitness centre or yoga studio? Or taking other ongoing classes? Special rules apply to these types of contracts. Learn about these arrangements, including how to get out of them if you're not happy.

What you should know

Special rules apply

A service you get that that continues over time — like a gym membership or self-defence lessons — is legally different from a one-shot deal like a haircut. These agreements are called continuing service contracts, and there are special rules for them.

The contract must include certain information

When you sign up, make sure the contract has the following:

  • the name, address, and phone number of the service provider — and the email address too if you bought online
  • detailed information about the product
  • the total price, with a breakdown of taxes and other charges
  • your cancellation rights
  • the amount due each payment period — weekly, monthly or whatever period is in play
  • if it’s for classes, a description of when they will take place, and any details on missed or make-up classes

The contract can’t be for more than two years

A continuing services contract can’t extend beyond two years. But it can include a section on renewals. If it does, you can renew by consenting in writing within one month of the contract’s expiry date.

Be careful if they try to “automatically” renew your membership via ongoing credit card charges. Online companies with a subscription service (think: Amazon Prime, or Netflix) have contracts with automatic renewals. Bear in mind that since these companies have head offices outside of BC, and operate online, it can be difficult to enforce our laws against them.

You can cancel the contract during the cooling-off period

After receiving a copy of the contract, you have a 10-day cooling-off period to change your mind. You can back out for any reason during this time. The business must give you a full refund within 15 days.

Be careful with “free trials,” especially online. With these, you give your credit card info up front but aren’t billed until the trial period is over. The problem is, people are busy. We forget these dates. Business count on it! Studies show that almost half of all people who accept free trials forget to cancel before the auto payments kick in. Half! Don’t end up paying for something you won’t use.

You can cancel if there has been a material change in your circumstances

Even after the cooling-off period, you can still cancel one of these contracts if your circumstances have materially changed.

What might this look like? Maybe:

  • you broke your leg, so you can’t do a downward dog (or any pose, really) for several months, or
  • you moved to Vernon from Vancouver, and don’t intend to commute five hours every Tuesday evening to enjoy that painting class.

Tell them your reason for cancelling, and be prepared to provide proof (such as a doctor’s note, or a bill from your new address). You’re entitled to a prorated refund, and the business can charge you a reasonable admin fee to process the cancellation.

We’ve covered a material change in your circumstances. What if the business changes things?

Say the gym promises spin classes, but then cancels all of them. Or the yoga studio moves to Vernon, but you’re still living in Vancouver. In these circumstances, you can cancel and get a prorated refund.

Take action

Step 1. Do research

Being a good consumer is equal parts proaction and measured reaction. (Sorry, that sounded like rocket science. It’s not.) The key thing is — be prepared, and be firm.

Before you sign up for that great deal at the new fitness studio, read the fine print. Will the classes you’ve paid for in advance expire after a few months? Does the studio have a lot of negative online reviews?

Step 2. Be alert during trial periods

There’s plenty of competition out there. Businesses will try to woo you with extra perks and services, or give you a free trial.

Again, read the fine print. After the trial ends, are you already committed to a one-year term? After the first month, do you have to pay more to access (let's say) the lockers, hot tub, and sauna? If it is unclear, ask. Do. Your. Homework.

Step 3. Keep the contract

We’re increasingly paperless, but keeping contracts is important. Ask the business to email you a copy. Or take a phone photo of each page for future reference. That way, if things go wrong (or if the business can’t find a copy), you’ll have back-up.

Step 4. If you decide to cancel, be firm

If you want to cancel because of a material change in your circumstances, or if you’re still within the 10-day cooling off period, first call the business or go in-person.

Be firm, but polite. Explain why you’re cancelling. You may have to speak to a manager. Make sure you get confirmation in writing that they’ve accepted the cancellation and the amount they’re going to refund you (if you’ve pre-paid).

Step 5. Followup in writing

If the business continues to deny you a refund, write them a letter. Consumer Protection BC has a handful of handy templates: to cancel during the cooling-off period, due to a material change for you, or due to a material change for them.

Step 6. Wait 15 days

They have 15 days to give you a refund. If nothing happens by then, give them a call. Confirm they got your letter. Demand your refund.

Step 7. Take to social media

If the business still refuses to comply, take to social media to voice your concerns. Be accurate. Be truthful. (If you are not truthful online, you may expose yourself to being sued.) You may end up getting what you want. Companies are eager to protect their reputations.

Who can help

Helpful agencies

Is the business still denying your rights? If you need help with that or other consumer-related issues, consider getting in touch with the following agencies.

Consumer Protection BC
Assists with some consumer problems and contracts. Includes online complaint form.
Call 1-888-564-9963
Start a complaint
Visit website
Better Business Bureau
Receives complaints about local businesses that are members.
Call 1-888-803-1222
Visit website
Competition Bureau
Deals with complaints about false or misleading advertising.
Call 1-800-348-5358
Visit website

Legal advice

Affordable legal help does exist. (To be fair, two of these are options for help, and the third — the online tribunal — is a low-cost path to bringing a legal action.)

Lawyer Referral Service
Helps you connect with a lawyer for a complimentary 15-minute consult to see if you want to hire them.
Call 1-800-663-1919
Visit Website
Access Pro Bono's Free Legal Advice
Volunteer lawyers provide 30 minutes of free legal advice to people with low or modest income.
Call 1-877-762-6664
Visit Website
Civil Resolution Tribunal
Resolve disputes of less than $5,000 online 24/7 (no need for a lawyer!).
Visit website
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