7, 2013

MANITOBANS REMINDED TO BE CAUTIOUS WHEN SIGNING PREPAID CONTRACTS WITH HEALTH AND FITNESS CLUBS OR DIET CLINICS

As Manitobans look to fulfil their new year’s resolutions, the Consumer Protection Office is reminding consumers to read all terms and conditions before signing prepaid services contracts with health and fitness clubs or diet clinics to ensure they contain the following information:

• the names and addresses of the supplier and the consumer,
• a description of the services to be provided by the supplier,
• the total fee for the services being provided, and
• the date the services will be made available.

Businesses such as health and fitness clubs or diet clinics are prohibited from offering multi-year or lifetime memberships.  By regulating the length of certain prepaid services contracts to one year, prohibiting businesses from taking a full year’s payment upfront or renewing memberships automatically, the Manitoba government helps to protect consumers against losses in the event of a business failure.
In addition, all prepaid services contracts must state in writing that consumers have seven days after signing in which to cancel.  Consumers do not have to give a reason to cancel; written notice to the business is sufficient.  Under Manitoba law, if a consumer cancels within seven days of entering into a prepaid services contract, the supplier is required to refund any money received for services that have not yet been provided.  For example, if a consumer enters into a prepaid services contract to receive personal training and cancels before receiving any sessions, the business is required to refund the payment in full.
For more information about prepaid services contracts or to find out about consumer rights and responsibilities, contact the Consumer Protection Office at 204-945-3800, 1-800-782-0067 (toll-free) or visit the website at www.gov.mb.ca/cca/cpo.

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