Calls have been made for tighter regulation of the fitness industry after a number of recent club closures left thousands saddled with prepaid membership in bankrupt gyms. Calls by consumer watchdogs and new players in the industry for a clampdown have received a cool response from the Government. According to the Consumer Council, 289 complaints were lodged against health clubs last year, up 167 per cent from the 108 cases the year before. In 1999 there were 116. The managing director of new group Sportathlon, Michael Lamb, spoke out against industry rivals offering long-term memberships, saying they could hurt consumers if the clubs closed. 'I am totally against the practice of selling long-term memberships. I don't think it's good for the industry and I think it puts the consumers at high risk.' A relatively new entrant in an industry dominated by rivals California Fitness and Physical, Sportathlon runs the Spa and Fitness First chains of health clubs. California Fitness, with more than 40,000 local members, is the largest club. While most health clubs provide prospective members with a pay-by-the-month option, Mr Lamb said: 'The problem is those operators provide some very aggressive pricing structures for long-term membership plans; they tempt the consumer to lock themselves into a long-term plan.' Hong Kong Physical Fitness Association vice-chairman Stanley Hui Sai-chuen called for health clubs to reveal their financial position before signing consumers to long-term gym contracts. 'If a company wants to offer these kinds of promotions involving pre-paid fees, they should reveal their current financial position as well as their future growth, to bring a certain degree of transparency for the consumers.' He said such measures would give consumers the upper hand in dealing with gyms as well as discouraging unethical practices preceding gym closures. In February, Body by Deborah closed its doors to its more than 2,000 customers, promising to reopen by mid-March. In late December, another gym, TLC, ceased operation two weeks after a local Gold's Gym outlet closed. In August, beauty centre the Spa Retreat closed, telling members it had an air-conditioning problem. It never reopened. In an e-mail response to questions, California Fitness Hong Kong chief executive Eric Levine said he did not believe long-term membership posed a risk to consumers. He also said the company would be willing to reveal its financial position to anyone signing up for long-term contracts should others in the industry do the same. A recent Sunday Morning Post visit to California Fitness was met with a sign at the club's door promising a monthly fee of $288, down from an original $699. However, we were told that the $288 'promotion' was part of a plan whereby a customer prepaid just under $20,000 for five years at an average monthly cost of around $330. Consumer Council spokesman Kenneth So Wai-sang said the increase in complaints against health clubs was due to the high number of gym closures last year. There are currently no plans to introduce legislation protecting people signing up for health club memberships. Mr So said repeated appeals to the Government by the council for rules protecting gym-goers had been ignored. raymondma@scmp.com
