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Original article: Te lo venden mensual, te lo cobran anual: ODECU alerta por prácticas abusivas en gimnasios

ODECU Warns of Abusive Practices by Gyms: Monthly Fees with Annual Commitments

The enticing offer of joining a gym with an affordable monthly fee may conceal a difficult-to-break annual commitment with hefty penalties. This is one of the key findings from the study titled «Legal Analysis of Contractual and Advertising Practices in the Gym Industry in Chile,» presented by the Chilean Consumer and User Organization (ODECU), which reveals significant imbalances detrimental to users.

The analysis, funded by the Competitive Fund for Consumer Associations, scrutinized contracts, internal regulations, and business practices of major national gym chains, identifying seven findings that paint a picture of standardized abuse.

The «trap» of monthly plans and insurmountable barriers to exit.

The study confirms that one of the most persistent and misleading practices is the promotion of «monthly» plans that, upon signing, translate into contracts lasting up to twelve months, with automatic renewal and covert commitments that are not clearly and prominently communicated to consumers. This business strategy severely restricts the freedom of users.

“It was detected that plans marketed as monthly effectively involve contracts lasting up to twelve months, with automatic renewal and covert commitments that are not always clearly explained at the time of signing,” the report states.

High Penalties for Early Termination

Once inside the contract, exiting early becomes an uphill battle. “Several contracts establish significant penalties for those who decide to terminate before the agreed term, including retention fees that can reach a substantial percentage of the remaining contract value, discouraging the exercise of the right to terminate the service,” the document adds.

Limited Options for Refunds

According to the document, the chances of obtaining refunds are practically nonexistent, reserved only for extreme situations, as “in some cases, the only acceptable grounds for refunds are extreme circumstances such as death or permanent disability, excluding common scenarios like unemployment, relocation, or financial difficulties.”

Information Asymmetry and Contracts Not Provided Before Payment

One of the most serious findings is the violation of the basic right to prior information, as it was confirmed that not all gyms provide consumers with contracts and regulations before enrollment.

This leads individuals to sign up for these fitness establishments «without knowing in writing the actual service conditions, violating the right to clear, truthful, and timely information.”

Gyms Not Held Responsible for Injuries, Thefts, or Losses

Additionally, ODECU identified a worrying trend of absolving gyms from all responsibility, shifting risks entirely onto the user. This occurs in two sensitive areas: physical integrity and the security of personal belongings.

“There is a trend to exempt the gym from liability for injuries, health damages, or accidents, even in cases involving physical activity, the use of machines, and professional duties of safety and prevention,” the study warns.

Simultaneously, “most contracts reviewed exclude the gym’s liability for thefts or losses of belongings within the facilities, even when lockers and access control are available, leaving consumers without real protection.”

Use of Personal and Biometric Data for Commercial Purposes

Another irregular situation detected involved the use of personal and biometric data by gyms for commercial, marketing, or third-party sharing purposes, “without clearly distinguishing what information is necessary to provide the service and what is not.”

Severity Ranking: Gyms Under Scrutiny

Although all analyzed chains exhibit shortcomings, ODECU detailed the specific risk levels for consumers in four of them:

Upgrade (Pacific): Tops the list for its lack of transparency, as the investigation found that “its contracts and regulations are not available before enrollment, neither in physical nor digital format.” This situation prevents clients from being aware of essential conditions such as plan duration, penalties, termination grounds, freezes, or responsibilities, forcing them to sign membership contracts without sufficient prior information.

Sportlife: Characterized by extreme and restrictive rigidity in its contracts, especially concerning early termination clauses and money refunds. “The internal regulations function, in practice, as an adhesion contract with few exit options for consumers,” stated ODECU.

Energy Fitness Club: Utilizes a complex fragmented contractual system that favors unilateral modifications, being composed of multiple documents and extensive internal regulations incorporated into the contract and subject to subsequent changes.

SmartFit: While it offers better information access standards, it still has key issues. Among the detected irregularities are: “penalties for early termination, covert commitments, and limitations on consumer flexibility.”

ODECU’s Call for Action and Oversight

In light of this scenario, ODECU made a strong call to authorities to enhance oversight of the sector and demand higher standards of transparency, especially in continuous payment services.

“Training should not mean signing blindly, getting trapped by penalties, or assuming risks that belong to the company. Physical activity is a free-choice endeavor that should not be based on unbalanced contracts that infringe consumer rights,” stated the organization’s president, Stefan Larenas Riobó.

The organization urged consumers to demand and meticulously review contracts before any payment or signature, and to report practices that restrict their rights.

The study highlights that, in the Chilean fitness industry, the fine print can weigh more than any dumbbell.

• To read the study in detail, click here.
• For key legal conclusions, click here.

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