Youngsters 'coerced' Into Pricey Gym Contracts

The Consumer Council named and shamed four fitness centres on Monday for allegedly using high-pressure tactics to force people to sign up into expensive contracts worth up to HK$1.75 million.

The watchdog says it received more than 230 complaints against SML Studio, also known as TIA Studio; Fitness Express Company; A Plus Fitness in Mong Kok, and Legend Fight and Fitness in Causeway Bay.

Complainants accused salespeople of using unscrupulous tactics like tricking consumers into giving up their credit cards, verbally threatening them against leaving the premises, and even forcing them to declare on video that they won't make any claims against the company in future.

Council spokesman Antonio Kwong said young people appear to have been targetted, with over 90 percent of the complaints aged 25 or under. He added that nine alleged victims are ‘mentally incapacitated’.

One woman who has a brain condition was said to have been pressured into paying HK$1.75 million for a 15-year membership, in addition to over 1,000 private coaching sessions. A staff member allegedly took her to a moneylender so she could take out the loans needed to cover part of the cost.

Kwong said “young consumers, under the threat of personal safety, succumbed to the unrelenting pressure to sign the contract, so as to swiftly escape from the uncomfortable situation.”

He added that many consumers were made to pay by unconventional means such as purchasing gift vouchers from chain stores that were then used to pay for memberships. Others were required to transfer funds electronically. The council said some of the transfers were to the salespeoples' personal accounts.

The Council's Chief Executive, Gilly Wong, these aren't acceptable methods of payment, because there would be no guarantee that the money is actually going to the company. She added that people should makes sure they always get a copy of the signed contract.

The watchdog says some cases have been referred to the Customs Department, which is now looking into the matter.

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