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
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