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Is Your Gym Refund Policy Legal in Australia? What WA Fitness Businesses Need to Know
“No refunds” is one of the most common lines in fitness membership and enrolment agreements, whether that’s a gym, a Pilates reformer studio, a yoga studio, or a personal training package, and in Western Australia, it’s also one of the most likely to be unenforceable in the way business owners expect. We covered the general version of this issue in Your Refund Policy Isn’t a Loophole: What the Law Actually Says. Fitness memberships have two extra layers of regulation on top: a WA-specific cooling-off rule, and the national unfair contract terms regime.
Gym Refund Policy Australia: The WA Cooling-Off Period
Under WA’s Fair Trading (Fitness Industry Code of Practice) Regulations 2020, new fitness memberships generally need to come with a seven-day cooling-off period. The code applies broadly to “fitness suppliers,” which is generally defined to capture more than just traditional gyms: 24/7 gyms, outdoor boot camps, personal trainers, and yoga classes are all specifically identified as fitness services, and a Pilates studio offering group reformer or mat classes is likely to sit within the same general category.
During the cooling-off window, a member can generally cancel without giving a reason, simply by providing written notice, and the cancellation generally takes effect immediately. Consumer Protection WA’s guidance sets out how this is generally expected to work in practice, including that a business is generally responsible for cancelling any third-party direct debit arrangement, not the member.
A membership agreement that states “no refunds under any circumstances” or otherwise appears to remove this cooling-off right is unlikely to be enforceable, regardless of what the client signed.
What a Compliant Fitness Refund Policy Looks Like
Where a member cancels within the cooling-off period, the business is generally entitled to charge a reasonable administration fee and to charge for any sessions or services already used, but should generally refund the balance, typically within 14 days. Outside the cooling-off period, cancellation terms are usually governed by the specific agreement, but the ACL’s general consumer guarantees continue to apply regardless of what the contract says, meaning a “no refunds ever, for any reason” clause is likely to remain unenforceable even after the cooling-off window closes.
Fitness Memberships and Unfair Contract Terms
Separately from the cooling-off rule, gym and studio membership agreements are usually “standard form” contracts, the same non-negotiated terms offered to every member, which brings them within Part 2-3 of the Australian Consumer Law on unfair contract terms.
Since 10 November 2023, including or relying on an unfair term in a standard form consumer contract can attract a civil penalty, not just have the term declared void. Terms that ACCC guidance has flagged as likely to raise concerns in this sector include one-sided cancellation rights (where the business can end or suspend a membership at will but the member can’t cancel on similar terms), long lock-in periods combined with automatic renewal that’s hard to opt out of, and termination or exit fees that look more like a penalty than a genuine estimate of the business’s loss.
The ACCC’s guide to unfair contract terms sets out the general test in more detail, and it’s worth checking your standard membership agreement against it directly rather than assuming a template written some years ago still holds up.
Prepaid Fitness Membership Limits in Western Australia
WA’s fitness code also generally addresses prepaid membership terms, which is relevant if your business sells extended upfront packages, such as an annual membership paid in full, rather than ongoing periodic payments. It’s worth checking your current agreements against the code’s requirements rather than assuming a longer prepaid term is automatically compliant.
Example: A 12-Month Gym Membership With a “No Refunds” Clause
A Perth boxing gym sells a 12-month membership, paid upfront, with a “strictly no refunds” clause displayed at sign-up and in the contract, and a separate clause allowing the gym to suspend or cancel a member’s access at any time for any reason, with no equivalent right given to the member.
A new member cancels on day four, citing a change in personal circumstances. Under the WA cooling-off requirement, the member is likely entitled to a refund of the unused balance, less a reasonable admin fee, despite the “no refunds” wording, because that clause is unlikely to override the statutory cooling-off right.
Separately, the one-sided cancellation clause is the kind of term the ACCC has flagged as likely to be considered unfair, which creates its own exposure regardless of what happens with this particular member.
The gym’s exposure here isn’t just the refund itself. A “no refunds” claim displayed prominently at sign-up could also raise a separate question under the Australian Consumer Law about whether the representation itself was misleading, a topic we explored in detail in August’s Is Your Advertising Legal?
Example: A Pilates Class Pack and Refund Request
A boutique Pilates studio sells a 10-class pack, non-refundable and non-transferable once purchased, with no cooling-off mention anywhere in the sign-up flow.
A new client attends one class, decides the studio isn’t the right fit, and asks for a refund of the remaining nine classes within the first week.
If the studio is a “fitness supplier” for the purposes of WA’s code, which a Pilates studio offering group classes is likely to be, the same seven-day cooling-off right is likely to apply regardless of the “non-refundable” wording, and regardless of whether the arrangement is styled as a membership, a class pack, or a course of sessions.
Practical Steps for WA Gyms, Studios and Trainers
Check your current membership agreements for a clear, compliant seven-day cooling-off clause, rather than a blanket no-refunds statement.
Make sure your sign-up process, in person, online, or via an app, actually communicates the cooling-off right to new members, not just buries it in fine print.
Review your agreement for one-sided cancellation, lock-in, and exit-fee clauses against the ACCC’s unfair contract terms guidance, particularly if the business can end a membership more easily than the member can.
Review how prepaid membership terms are structured against WA’s fitness code requirements.
Update any marketing material, signage, or website copy that states or implies “no refunds, no exceptions,” since this may itself be a misleading representation as well as an unenforceable term.
Gym Refund Policy Australia FAQs
Are “no refunds” policies legal for gyms in Australia?
A blanket “no refunds” policy is unlikely to override rights that a consumer has under Australian law. For WA fitness businesses, the seven-day cooling-off period and the Australian Consumer Law can both affect whether a refund is required despite wording in a membership agreement.
Does a WA gym have to offer a seven-day cooling-off period?
New fitness memberships in Western Australia generally need to include a seven-day cooling-off period under the Fair Trading (Fitness Industry Code of Practice) Regulations 2020.
Can a member cancel a fitness membership during the cooling-off period?
Generally, yes. During the cooling-off period, a member can generally cancel without giving a reason by providing written notice, with cancellation generally taking effect immediately.
Can a WA fitness business charge a fee when a member cancels during the cooling-off period?
A business is generally entitled to charge a reasonable administration fee and for fitness services or sessions already used during the cooling-off period. The remaining balance should generally be refunded.
How quickly should a refund be provided after a cooling-off cancellation?
Where a refund is payable following cancellation during the cooling-off period, the balance should generally be refunded within 14 days.
Can a gym membership contain unfair contract terms?
Gym and studio membership agreements are commonly standard form consumer contracts, which means the Australian Consumer Law’s unfair contract terms regime can apply. One-sided cancellation rights, difficult automatic renewals and disproportionate termination or exit fees can raise concerns.
Can a gym say “no refunds under any circumstances”?
Such wording may be unenforceable where it attempts to remove statutory consumer rights. It may also raise concerns if the statement gives consumers a misleading impression about the rights they have under Australian law.
Do WA Pilates studios have cooling-off obligations?
A Pilates studio offering fitness services may fall within the WA fitness industry regime. Whether the code applies depends on the particular arrangement and services being supplied, but group Pilates services may fall within the general fitness services category discussed in the code.
Do prepaid fitness memberships have additional rules in Western Australia?
WA’s fitness code also addresses prepaid membership arrangements. Fitness businesses selling annual memberships or other extended upfront packages should check their agreements against those requirements rather than assuming any prepaid term is automatically compliant.
Should a fitness business review its refund policy when its membership terms change?
Yes. Changes to cancellation rights, prepaid membership structures, automatic renewals, exit fees or the services being sold may affect whether existing membership and refund terms remain appropriate.
This blog is intended for general information purposes only and does not constitute legal advice. The content is based on Australian law and may not be current at the time you read it. Legal requirements may vary depending on your circumstances. Always seek independent legal advice tailored to your specific situation before acting on any information provided.
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