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 OFT and User Contract at Harrow Harrow Main Page

Thanks to Harrower for alerting me to this. PB  

Issue 39 November 2004 of Fairtrading, published by Office of Fair Trading  http://www.oft.gov.uk/NR/rdonlyres/7F80013B-3624-4FD6-B80C-20477C408B42/0/FairTrading39.pdf.

This Issue of Fairtrading reported that LC had given the OFT an undertaking to re-write user contracts. Some of the details of the case are available on request and the OFT has provided the report in the table below. LC's breaches are all the more disappointing as the OFT issued in 2002 a detailed "Guidance on Unfair Terms in Health and Fitness Club Agreements" ( www.oft.gov.uk/NR/rdonlyres/8EA1B1A8-6A0A-4C69-8675-9E7375F15569/0/oft373.pdf.)

The OFT's response to LC's contract also raises questions about the value of the Fitness Industry Association's Code of Practice issued in June 2004 ( www.fia.org.uk/FIA_Initiatives-42.htm) . Standard 4 of this Code reads: "Ensure that any written contracts for members are
in accordance with The Office of Fair Trading’s publication, ‘Guidance on Unfair Terms in Health and Fitness Club Agreements’ (March 2002)." In May 2004 the FIA informed me that LC had 91 clubs/centres signed up. It is not clear what proportion of these LC claimed were FIA Code Compliant or what proportion had been deemed by the FIA to meet its standards.

In June 2004 I contacted the FIA seeking an investigation of the change in terms for members of Harpers when LC decided to reduce staffing in gyms, despite recruiting members on the basis of "full supervision". I also asked the FIA to investigate standards at Vale Farm. On 23 June I received an acknowledgement from the FIA saying  the matters would be passed on to their Executive Director. Since then, despite reminders in August and September, I have heard nothing further from the FIA. I am now (December 04) referring the matter to the OFT.  February 05 - OFT complaint and response. 

Office of Fair Trading Statement

Name of business

Leisure Connection Limited t/a Harrow Leisure Centre

Lead TSD

West Yorkshire Trading Standards Service

Trading sector

Leisure activities

Contract identifier

Terms of business

Original term

Application of the Regulations (Schedule 2 paragraph or as indicated)

How Changed

New Term

3(a)

1(l): potentially unfairly allowed the supplier to increase the agreed price without prior notice.

Reference to the supplier’s right to vary the price deleted. New term provides that the consumer will pay the agreed fee shown on the Acceptance Form.

11

4(a)

1(e): permitted the supplier excessive discretion to claim more than its reasonable costs or loss of profit in circumstances where the consumer cancels and the supplier is able to find a replacement booking.

New terms provide that where the supplier is able to find a replacement booking for part or all of the booking the consumer will only be liable to pay the proportion of the contract price not covered by the replacement booking.

26 and 27

4(b)(i)

1(b): allowed the supplier to refuse to carry out its obligations under the agreement, at its discretion and without liability.

Deleted.

 

4(b)(ii)

1(e), 1(f) and 1(k): allowed the supplier excessive discretion to terminate the contract, adjust the booking and impose financial penalties for improper use of facilities.

New term provides that the supplier may cancel the contract where the consumer commits a serious breach of its obligations to the supplier. The term lists a number of examples of the type of behaviour considered to be a serious breach.

29

4(b)(iii)

1(e): allowed the supplier to retain the full hire charge where it cancels the contract because of improper use of the facilities by the consumer in circumstances where the supplier is able to find a replacement consumer.

Amended to provide that where the supplier is able to find a replacement booking for part or all of the booking the consumer will only be liable to pay the proportion of the contract price not covered by the replacement booking.

26 and 27

4(b)(iv)

Provided the supplier excessive discretion to re-arrange bookings cancelled due to poor weather, competitions or other special events without first agreeing the re-arranged booking with the consumer.

Deleted.

 

5

1(a) and 1(b): allowed the supplier to unfairly exclude its liability in negligence or where it failed to act with reasonable care and skill.

New term states that the supplier accepts liability for death, injury or loss resulting from, or contributed to by, any act or omission by the supplier, its employees, sub-contractors or agents.

21

6(c)

1(b): potentially unfairly allowed the supplier to exclude liability for loss or damage in circumstances where a booking is cancelled for reasons within the supplier’s reasonable control.

Revised to provide that the supplier will not be liable if it cannot supply the agreed service for reasons outside its control. Also, the term now includes a number of examples to illustrate circumstances that would be outside the supplier’s control.

23

7(a)

1(b): potentially unfairly allowed the supplier to exclude liability where it failed to carry out the service with reasonable care and skill.

New Term provides that the supplier will take all reasonable steps to ensure that its staff, sub-contractors and agents carry out the service with reasonable care.

20

10

1(f): unfairly allowed the supplier excessive discretion to refuse admission to, or expel consumers from, the venue.

Revised to provide that the supplier reserves the right to refuse admission to, or remove any person from, the venue who behaves unreasonably or does not comply with lawful and reasonable instructions given by the supplier’s staff.

20

Other information

The initial consumer complaint forwarded to the OFT concerned the terms and conditions used by Harrow Leisure Centre which is operated by Leisure Connection Limited. The revised contract will be used in all the leisure facilities operated by the supplier which includes a number of leisure centres managed on behalf of local authorities.

Further to the OFT approaching the supplier about the fairness of its terms and conditions the supplier elected to implement a completely new contract.

Specific reservations

Term 29 provides that the supplier can cancel the contract if the consumer commits a serious breach of its obligations under this contract or ‘any similar contracts’. The OFT considers that the definition of ‘any similar contract’ is unclear and, subsequently, the term potentially unfairly allows the supplier an excessive right to cancel the agreement. However, after careful consideration the OFT will refrain from taking further enforcement action subject to evidence of potential or actual unfairness to the detriment of consumers.

Undertakings accepted

3 September 2004                  10 terms revised or deleted

       

 

This table is also available at http://www.crw.gov.uk/Undertakings+and+court+action/Publish+Public/1543_1.htm