Thousands of gym contracts ruled unfair in OFT case

The Office of Fair Trading (OFT) has confirmed its ability to enforce fairness for consumers. A recent case brought by the OFT in the High Court clearly highlights the importance of ensuring that a business’ terms and conditions are adequately drafted to protect the business and its needs whilst also ensuring compliance with consumer law.

The case was brought by the OFT following a substantial number of complaints regarding the pressure the gym and its credit agency had been putting on its gym members to obtain outstanding payments. The case was against the credit agency, Ashbourne Management Services Limited, a company employed to collect payments for over 700 gyms and which recommended and enforced the gym contracts. The High Court ruled that any gym contract that tied a consumer in for longer than 12 months was unfair and that a number of collection techniques used by the company were unlawful.

A director in the OFT Goods and Consumer Group confirmed: ‘Unfair terms that unreasonably bind consumers into long contracts they cannot leave, and heavy-handed collection techniques, have no place in businesses’ dealings with consumers. This ruling should help traders to understand where the boundaries lie, and sends a warning that if they cross line, the OFT and local trading services can take action’.

To get your consumer terms up to scratch contact Andrea Curtis at andrea.curtis@birkettlong.co.uk

 

 

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