New South Wales Consolidated Acts

FITNESS SERVICES (PRE-PAID FEES) ACT 2000 - SECT 10

10 Pre-payment of fees where agreed service not provided within 3 months of payment

(1) A supplier must not seek or accept a pre-paid fee for any fitness service to be provided under a fitness service agreement at, or in connection with, a fitness centre if:

(a) the supplier intends at the time the fee is sought or accepted not to commence to provide the agreed service within 3 months after the date on which the fee is sought or accepted, or

(b) there are reasonable grounds, of which the supplier is aware, or ought reasonably to be aware, at the time the fee is sought or accepted for believing that the supplier will not be able to provide the agreed service within 3 months after the date on which the fee is sought or accepted.

Maximum penalty: 1,000 penalty units.

(2) A supplier who accepts a pre-paid fee for any fitness service to be provided under a fitness service agreement at, or in connection with, a fitness centre must refund that fee to the consumer of the service within the prescribed period if the supplier does not commence to provide the agreed service within 3 months after the date on which payment is accepted.

Maximum penalty: 1,000 penalty units.

(3) A fitness service agreement under which a fitness service is to be provided at, or in connection with, a fitness centre is, by operation of this subsection, terminated on and from the day that the period of 3 months expires after the day on which the agreement was entered if the supplier does not commence to provide the agreed service to the consumer of that service within that period.

(4) A supplier cannot be convicted of an offence under both subsection (1) and section 53 of the Fair Trading Act 1987 in respect of seeking or accepting a pre-paid fee on the same occasion.

(5) In this section, "prescribed period" means:

(a) the period of 7 days immediately after the expiry of 3 months after the date on which payment is accepted, or

(b) such other period as may be prescribed by the regulations immediately after the expiry of 3 months after the date on which payment is accepted.