Gym fitness card supervision regulations

The "Gym Fitness Card Supervision Regulations" currently implemented in various parts of the country are based on the three core rules of "third-party custody of prepaid funds, 7-day unreasonable cooling-off period, and inversion of the burden of proof for card withdrawal disputes" to fundamentally solve the perennial problems of high consumer complaints in the fitness industry such as prepaid flight, difficulty in withdrawing cards, and overbearing clauses. As of the first half of 2024, in the 27 provinces and cities that have implemented the regulations, the number of fitness prepaid complaints has dropped by an average of 68% year-on-year.

Let me tell you a true story that I encountered a while ago. In the internet-famous gym downstairs that had been open for less than three months, the owner emptied out all the dumbbells and barbells one night. He posted a notice on the door saying "Business is temporarily suspended due to poor management." More than 100 annual members in the group were upset, and more than 200,000 in membership fees were taken away. Before 2022, this group of people will most likely have to go to the Consumers Association as a group to register. Whether they can get their money back depends on the conscience of the boss. But this year is different. This group of people got a full refund last week - thanks to the newly implemented regulatory regulations, all the money they spent to apply for the card is in a third-party supervision account. The merchant cannot withdraw all the money before completing the performance of the contract. After the accident, the regulatory department directly returned the remaining funds to the members.

I have been practicing for 5 years and have applied for 3 fitness cards. When I returned the card, the merchant deducted a 20% liquidated penalty. The other party also criticized me by showing me the "no return or exchange once sold" clause in the membership instructions. I really couldn't do anything before. How can ordinary consumers have the energy to prove that the merchant's service is not in place every day? Now the regulations directly place the burden of proof on card refund disputes on the gym. If they can’t provide evidence that you have enjoyed the corresponding services, they will have to refund you. There is no room for wrangling. Isn’t that cool?

Of course not everyone buys it. I know a few owners of community studios who complained that it was difficult to start a small studio. They relied on pre-sales money to pay rent and buy equipment when they first opened. Now all the money goes into the supervision account. They can’t get a penny in the first three months, and they can’t pay the rent, so they have to close down. On the contrary, small businesses that are serious about business are stuck. On the contrary, those big chain brands have cash flow to carry them, and in the end they become industry monopolies. This is not unreasonable. The mom-and-pop shop near my home has been open for 4 years, and the professional coaching prices are very good. This time, the cash flow was blocked due to the new regulations, and it almost closed last month. In the end, more than 20 old members took the initiative to save some money for personal training lessons in advance to survive.

The current regulations in various places actually follow different paths, and there is no unified standard answer. For example, in Shanghai, all fitness prepaid fees are required to be paid in full into the supervision account, and transferred to the merchant on a monthly basis based on the actual performance progress. If you apply for an annual card, the gym can only withdraw 1/12 of the money from the account every month, and you can't withdraw much even if you want to. ； There is a 30% retention deposit in Shenzhen, and the rest can be withdrawn in advance, leaving some cash flow space for small studios. ； Some places are testing the waters and cooperating with insurance companies. When applying for a card, it is mandatory to take out a one-dollar performance insurance. If the merchant really runs away, the insurance will pay the compensation to the consumer first, and then the insurance company will go to the merchant to hold the merchant accountable, saving consumers the trouble of wrangling. Each of these modes has its pros and cons, and no one dares to say which one is perfect.

I have a child who works as a sports market supervisor in the district culture and tourism bureau. He said that last year, their jurisdiction received 127 complaints about fitness cards. This year, there were only 21 complaints after the regulations were implemented. However, new problems have also emerged: some merchants took advantage of the loopholes and changed the annual card to a "fitness service redemption voucher", saying that it did not fall into the category of prepaid cards. They did not want to enter the supervision account, and it took a lot of effort to provide qualitative rectification.； Some consumers take advantage of the 7-day cooling-off period to go to the gym, take classes and shower every day, and then apply for a card refund without reason on the 6th day. Merchants are also miserable.

In fact, in the final analysis, this regulation has never been intended to kill any industry. It is just to draw up rules for fitness prepayments that were a mess in the past, and to squeeze out those pop-up gyms that rely on the "pre-sales-circulation-money-running" cycle to cut leeks. The only ones left behind are businesses that really provide services, which will be good for everyone in the long run. Nowadays, various places are adjusting their rules according to the actual situation. Some places have opened green channels for small studios with an annual turnover of less than 500,000 yuan to reduce the retention ratio. Some places are also filling the loopholes in the cooling-off period. For example, if you use paid group classes or personal training services during the cooling-off period, corresponding fees will be deducted, so that honest businesses cannot suffer losses.

Anyway, I recently advised my friends who want to apply for a card to first check the local regulatory rules. When paying money, ask "Will the money go into the regulatory account?" Don't be stupid and directly transfer the money to the boss's private WeChat. It's better than anything else. If you really encounter a rogue merchant, just call 12345 and ask for regulations. There is no need to talk nonsense to them.