Federal Assistant Treasurer targets gyms and wellness apps in warning on 'subscription traps'

Federal Assistant Treasurer targets gyms and wellness apps in warning on ‘subscription traps’

January 5, 2025

Nigel Benton

Billing / Fitness / Government / Legal / Technology /

Picking up on a tactic often adopted by state fair trading and consumer affairs ministers and agencies, Federal Assistant Treasurer and Minister for Financial Services, Stephen Jones has released advice for consumers to “beware of New Year’s resolution subscription traps” singling out signing up to “the local gym, a meal‑kit provider or a wellness app” as part of a Federal Government “crack down on unfair trading practices that are ripping off Australians”.

Minister Jones’ New Year’s comment follow plans announced by Australian Prime Minister Anthony Albanese in October to protect consumers and suppliers by banning unfair trading practices under the Australian Consumer Law.

These practices include ‘dynamic pricing’ for concert tickets and ‘subscription traps’ for gym memberships, airline tickets, hotel rooms and online shopping.

Consultation on the planned legislation closed in December, with the Federal Government now working through stakeholder feedback.

However, Minister Jones’ new announcement goes beyond the planned legislation, urging consumers to exercise discretion, noting “these subscriptions or memberships should be just as easy to get out of as they are to sign up to”, adding “unfortunately, there’s been a rise in dodgy practices that make it almost impossible to unsubscribe.”

He goes on to say “before signing up, Australians should be alert to tactics that make it difficult to unsubscribe or free trials that automatically renew without any warnings.

“These practices could cost Australians hundreds or even thousands, while also wasting a lot of time jumping through maze‑like ‘unsubscribe’ hoops.

“We want people to be alert to these dodgy practices, but more importantly we want businesses to stamp it out altogether.”

Why single out gyms?
At a time when many Australians are considering taking up exercise to see through their New Year’s resolutions - a period often known as 'gym-uary' - Minister Jones’ comments appear to be designed to discourage people joining gyms and fitness facilities.

It is consistent with tactics adopted in past years by state fair trading and consumer affairs ministers and agencies prior to 2023.

One club owner, who asked not to be named, reacted by saying “when we are encouraging Australians to be active and initiative’s like AUSactive’s Fit For Office campaign seem to have convinced many MPs of the benefits the fitness industry brings, its really unfortunate to cop a cheap shot like this”.

In 2020, Australasian Leisure Management looked into a warning about gym contracts issued by the Queensland Office of Fair Trading.

We found that of over 15,000 complaints the agency received in the previous year less than 1% related to fitness club memberships, prompting the questioning over whether such warnings were disproportionate.

Since then, more groups have introduced 'no lock-in' contracts.

Image credit: Adobe stock.

About the author

Nigel Benton

Co-founder/Publisher, Australasian Leisure Management

Born in the English county of Dorset, Nigel Benton is the co-founder and Publisher of Australasian Leisure Management, Australia, New Zealand and the Asia-Pacific’s only magazine for professionals in all areas of the leisure industry and the www.ausleisure.com.au website - the go to news resource for industry leaders and professionals.

With a long-term commitment to communicating all that is best about the leisure industry (aquatics, attractions, entertainment, events, fitness, parks, recreation, sport, tourism and venues) his career has been defined by an ability to develop and implement industry communications.

Starting his career working in heritage visitor attractions and then adventure travel in Africa and the Middle East, an interest in writing about his experiences led to his change of career into magazine journalism and publishing.

In addition to publishing, Nigel speaks on marketing communications at a range of industry events.

He was made a Life Member of the World Leisure and Recreation Association in 2006 and is a Fellow of the Royal Geographical Society (London).

In 2020, he launched the new Asian Leisure Business website.

As of October 2024, he was inducted into the Australian Fitness Awards Roll of Honour at the 2024 AUSactive National Awards.

Among a range of published works and features, his comments on a Blog (blogspot) from 2007 to 2011, when this website went live in its current form, may be interesting to reflect back on.

His philosophy on life is to be kind to all and to indulge those that you love.

His passions include family, Newcastle United and motorcycles (especially British ones) as well, until February 2025 when she left us, caring a little pug named Stella.

Click here to connect with him via LinkedIn.