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 first discusses door-to-door sales, fitness club memberships and other similar contracts, and 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===
Perhaps you’ve signed a contract with someone who came to your home and sold you a magazine subscription or a vacuum cleaner, or you’ve entered into a contract for home repairs. Or perhaps you’ve gone out and signed up to join a health club. Under the ''Business Practices & Consumer Protection Act'', these are known as “future performance contracts.” Most door-to-door sales and similar contracts are “future performance contracts”.
When you sign up, make sure the contract has the following:


A future performance contract is one where you don’t receive the goods or services or the payment isn’t made in full when you sign the contract. For example, you agree to buy a vacuum cleaner and pay it off over six months. Or you agree to buy an encyclopedia set which will be delivered in installments. Or you agree to join a health or fitness club and pay a monthly membership fee. Contracts under $50 aren’t considered future performance contracts.
* 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


==A future performance contract must include certain things==
===The contract can’t be for more than two years===
If the total purchase price is $50 or more, the ''Business Practices & Consumer Protection Act'' lists all the information the contract must include to be legally binding. Among other things, the contract has to be a written contract signed by you, and it must:
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.
*show the date
*include the name, address and telephone number of the seller
*describe the goods or services
*show other costs, including taxes and shipping charges, as well as the total price
*include a detailed statement of the terms of payment


You must be given a copy of your contract within 15 days after signing it. If the contract you get doesn’t contain all of the things listed in the ''Business Practices & Consumer Protection Act'', then you have up to a year to cancel the contract.
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.


==Special rules apply to two types of future performance contracts==
===You can cancel the contract during the cooling-off period===
The two types of future performance contracts are:
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.
*direct sales contracts
*continuing sales contracts


==What is a “direct sales contract”?==
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.
A direct sales contract is a contract signed at a place away from the seller’s permanent place of business, for example, at your home. There’s a limit to the down-payment the seller can ask from you. If, for example, you buy a vacuum cleaner from a door-to-door salesman who comes to your home, the direct seller can’t ask for a down-payment of more than $100 or 10% of the purchase price, whichever is less. But if you invite a supplier into your home more than 24 hours in advance, then a contract signed with the supplier isn’t a direct sales contract.


==What is a “continuing services contract”?==
===You can cancel if there has been a material change in your circumstances===
A continuing services contract is a contract where you receive services over a period of time, rather than all at once. It is limited to contracts for dance lessons, personal training (i.e., a boot camp), weight loss programs, self defence lessons, and gym and travel club memberships. A continuing services contract must not be for longer than 24 months.
Even after the cooling-off period, you can still cancel one of these contracts if your circumstances have '''materially changed'''.


==Can you cancel these contracts?==
What might this look like? Maybe:
Yes. Whenever you sign a direct sales contract or a continuing services contract, the law gives you up to ten days to cancel the contract after receiving a copy of it. In fact, the contract itself has to state that you have this right to cancel at any time within the ten days.


==What if you don’t receive the goods or services?==
* you broke your leg, so you can’t do a downward dog (or any pose, really) for several months, or
If it’s a direct sale, and you don’t receive the goods or services within 30 days, you have up to a year to cancel. So if you don’t receive the promised vacuum cleaner within 30 days or the fitness club isn’t ready to be used within 30 days, then you have up to one year to cancel, so long as you don’t accept the goods or services later.
* you moved to Vernon from Vancouver, and don’t intend to commute five hours every Tuesday evening to enjoy that painting class.


==What if circumstances change?==
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.
For a continuing services contract, you can also cancel if there’s been a material change in the services that the seller was going to provide to you or in your personal circumstances. For example, you signed up for tango lessons and the seller now only offers tap dancing classes, or you moved more than 30 kilometres 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 proof of the material change to cancel the contract (for example, proof of your new address or medical documentation explaining the medical reasons why you can no longer participate in the activity).


==How do you cancel?==
We’ve covered a material change in your circumstances. What if the business changes things?
It’s best if you cancel the contract in writing – by fax, e-mail or registered mail, or by delivering a notice to the seller indicating that you’re cancelling. Just be sure to keep a copy and proof of delivery that you cancelled within the allowed time.


==Will you get your money back?==
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 cancel the contract within ten days, you’re entitled to a full refund of your money within 15 days after cancelling – even if you’ve already received the vacuum cleaner or started going to the fitness club. Once you’ve received your money back, you must return the vacuum cleaner.


==Can you cancel a continuing services contract partway through?==
==Take action==
If you cancel because there’s a significant change in your personal circumstances – like being seriously injured or moving to another city – you’re entitled to a pro-rata refund based on how much of the service you’ve used, less 30% to cover the seller’s costs. If you cancel because the seller’s services have changed – like offering different dance lessons or moving their dance studio – you’re entitled to a straight pro-rata refund without any deduction.


==What happens if the seller doesn’t give you a refund?==
===Step 1. Do research===
Then you can sue for a contract debt, normally in Small Claims Court. If you win, the seller must pay you three times the amount of your refund.
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.


==What is a time-share?==
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?
Time-sharing is a legitimate form of owning an interest in property. Often, the time-share is for one week of time or use 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 2. Be alert during trial periods===
BC’s ''Real Estate Development Act'' says that if you make the contract here 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. However, 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 Act'' won’t apply, and the law of that country will apply.
There’s plenty of competition out there. Businesses will try to woo you with extra perks and services, or give you a free trial.


==Where can you get help or more information?==
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.
*To help protect against unscrupulous sellers, check the seller’s record with the Better Business Bureau, available online. For mainland BC, the website is http://mbc.bbb.org (telephone 604.682.2711). For Vancouver Island, the website is http://vi.bbb.org (telephone 250.386.6348).


*Visit the Consumer Protection BC website at [http://www.consumerprotectionbc.ca www.consumerprotectionbc.ca] or contact them by phone at 1.888.564.9963.
===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.


*To learn more about BC’s consumer protection laws, read the ''Business Practices & Consumer Protection Act'', available online at [http://www.bclaws.ca www.bclaws.ca] or at your local law library.
===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).


[updated January 2013]
===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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