Commission settlement – Les Mills changes TV advertising
Published29 Jul 1997
As part of a settlement with the Commerce Commission, Les Mills World of Fitness has changed its television advertising to ensure that it does not mislead potential members about joining fees.
Commission Fair Trading Manager Rachel Leamy said that Les Mills changed its advertising as soon as the Commission explained its view that the advertising made false or misleading claims about prices and may have breached the Fair Trading Act. The settlement formalises Les Mills' commitment to the changes.
Joining fees for Les Mills gyms in Auckland, Wellington and Christchurch were advertised as at "half price", $100 off", "our lowest joining fee ever" and "less than half price".
The Commission's investigation showed that the fees charged in the weeks before and after the television promotions were similar, and at times less, than the advertised special prices.
When interviewed, Les Mills' managing director said that the advertised prices were compared to what he considered to be normal joining fees charged in the relevant cities, rather than with the usual fees actually charged by the company.
"We are happy with the co-operation we received from Les Mills and with the changes it immediately made to its advertising," Ms Leamy said.
The investigation arose from the Commission's surveillance of advertising.
"Gyms do a lot of advertising, and much of it seems to be questionable in terms of the Fair Trading Act," Ms Leamy said. "This enforcement action should be seen as a warning to the whole industry to learn about the Act and to look carefully at their promotions.
"The Commission will continue to monitor gym, and other, advertising, and will take more action if necessary."
In general terms, the Act promotes accurate information, so that consumers can make informed buying decisions. It prohibits misleading or deceptive conduct, and false or misleading claims.
Background details of Les Mills' television advertisements:
Promotion Cities Joining fee
Winter sale join for half price Auckland $149
$100 off joining fee Auckland $149
Our lowest joining fee ever, Auckland $99
less than half price Wellington $79
Christchurch $95
Enquiries before and after the advertisements established that the joining fee in Auckland was either $99 or $149, in Wellington $79 or $120 and in Christchurch $75 or $95.
