/ 27 October 2000

New rules in the play

David Le Page The abundance of unscrupulous players in the fitness industry, and its failure to set about self-regulation, could make life a lot tougher for the new owners of the Health and Racquet Club (H&RC), whoever they may be. The Department of Trade and Industry has proposed regulations in terms of the Unfair Business Practices Act that would limit the length of gym memberships to a single year. These regulations are still being discussed with the industry, but if implemented would have a dramatic effect on the business of the H&RC’s new owners.

A prohibition on long-term memberships, the mainstay of many South African gyms, would inflate the sales and administration costs of the group, run aground by LeisureNet’s ill-judged pursuit of overseas expansion. According to Sally Mills of the Health and Fitness Professionals’ Association, “there is a lot wrong with the industry”. Insiders point to fly-by-night gyms, hard-sell techniques and a willingness to squeeze too many members into under-resourced facilities as being typical problems. Gym owners appear to have been given something of a wake-up call by the proposed regulations. Embracing a proposed five-day cooling off period for new members, it hopes to persuade the department that a limit on the length of memberships would be a burden to the industry.