Decision Regulatory Impact Statement: The regulation of the fitness industry in Western Australia
New fitness code published
The Fair Trading (Fitness Industry Code) Regulations 2020 (WA) (that contain the new Fitness Industry Code) were published on 29 September 2020. This mandatory code comes into effect on 1 July 2021.
Consumer Protection completed a review of the Fair Trading (Fitness Industry Code of Practice) Regulations 2010 (the Code). The Code sets out specific standards of conduct for the Western Australia (WA) fitness industry.
The purpose of the review was to:
- identify current and emerging issues in the industry;
- changes in the types of fitness services being offered;
- assess the effectiveness of the Code; and
- determine whether there is a need for industry specific laws in WA.
The Review of Regulation of the Fitness Industry: Decision Regulatory Impact Statement (final report) July 2019 assesses the costs and benefits associated with three options for future regulation of the industry:
- Option A: Maintain the status quo;
- Option B: Update and expand the Code; or
- Option C: Repeal the Code.
The final report recommendation is to update and expand the Code - Option B. This option was preferred by the majority of stakeholders. It was found to generate benefits that outweigh the costs of regulation for business, the community and government.
Key changes to the Code:
The key changes to the Code recommended by the final report are to:
- Allow businesses to reduce their costs by supporting the use of electronic membership agreements and email communications.
- Clarify the required content and layout of membership agreements, to provide guidance for industry and assist consumers understand their fees and responsibilities.
- Recognise that membership agreements may be offered to clients outside of traditional fitness centres.
- Simplify the cancellation process by allowing for electronic notification and immediate cancellation of direct debit arrangements.
- Introduce a requirement for publication of services and fees to allow consumers to better compare providers.
Fitness Industry of Western Australia DRIS completed in July 2019 and released July 2020 (current paper)
Department of Treasury’s Better Regulation Unit Compliance Letter of 30 June 2019
Fitness Industry Code of Practice Consultation Report September 2019
Review of the Fitness Industry Code in Western Australia released on 2 July 2018
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