Competition Bureau Reaches Settlement with Premier Fitness in Ontario
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OTTAWA – The Competition Bureau announced that it has reached a consent agreement with Premier Fitness Clubs resolving the Bureau’s concerns over some of the company’s advertising practices from 1999 to 2004.
The Competition Bureau is an independent law enforcement agency. It contributes to the prosperity of Canadians by protecting and promoting competitive markets and enabling informed consumer choice. Premier owns and operates 35 clubs in Ontario. |
During its investigation, the Bureau determined that Premier did not adequately disclose additional fees that consumers would be obligated to pay in some of its advertising of membership offers on the radio, billboards, storefront signs, and in newspapers and flyers. Consumers who were induced by free trial offers ultimately had to pay a mandatory fitness assessment and/or had to sign a one-year contract to receive the “free” 30-90 day trial offer.
As a result, the actual price of memberships was greater than what the advertisements led consumers to believe. This contravened the false or misleading representations provision of the Competition Act.
Premier has voluntarily taken steps to correct its advertising practices to conform with the law. This cooperation, along with the consent agreement, have resolved the Bureau’s concerns without having to proceed with costly litigation.
Under the terms of the 10-year consent agreement, Premier Fitness Clubs is required to:
- pay an administrative monetary penalty of $200,000.00
- publish a corrective notice in The Toronto Sun, the Toronto Star and the Ottawa Citizen;
- display a corrective notice in its clubs and on its website
- implement a new corporate compliance policy to cover its marketing practices
- not make false or misleading representations in future promotional materials.
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