Department of Consumer Affairs: SC Law Gives New Protections to Gym Members

SC Law Gives New Protections to Gym Members

COLUMBIA, SC —

There are new protections for gym members in South Carolina that the state Department of Consumer Affairs wants you to know about.

Gyms or fitness centers now have to notify the Department of Consumer Affairs about any changes in their financial status, like opening or closing locations, filing for bankruptcy, or felony convictions for crimes like fraud or breach of contract. By being aware of changes, the department can better monitor gyms and fitness centers for problems that could affect members.

Gyms and fitness centers must also now file annual reports with the department, which will allow it to evaluate the financial stability of the businesses. Consumer Affairs says a lot of physical fitness facilities have closed during the recession, sometimes leaving former members who had prepaid contracts without the money they paid.

Another change is that a gym or fitness center’s letter of credit or bond, which is money set aside in case the business does go under, will now be based on the number of members, not the number of locations. The maximum amount of that bond has also gone up to $50,000, instead of $25,000.

Martha Phillips, staff attorney at the state Department of Consumer Affairs, says the bond is to protect consumers if the gym closes. “Then the consumer, if the gym doesn’t refund or cancel a consumer’s contract, then they can file through us a claim against that bond and be reimbursed.”

Chris Bacote was a member of a Columbia gym a few years ago. “A bunch of us showed up maybe one Wednesday or one Thursday and, to our behold, it was closed completely. No warning, no anything. There was just a number where we could call and there was something else where we could stop payments from coming off our credit cards, but there was no warning or anything,” he says.

Luckily, he had been paying month-to-month, so he didn’t lose any money from a prepaid long-term contract that was not reimbursed. But even though he didn’t lose anything and has found a new gym, he likes the new protections. “I think it’s good to definitely have that so you can help protect people,” he says.

Jill Berg, manager of Planet Fitness in Columbia, says she welcomes the changes. “We don’t offer a contract, so therefore they can get out at any time, which I’m sure makes them a little bit happier, more comfortable with that ability to do so,” she says.