Queensland Fair Trading Minister Peter Lawlor said owner Kelly Ann Armstrong received a $3,000 fine for not providing the Office of Fair Trading (OFT) with information to assist its investigation into the company's membership practices.
Oxygym Lifestyle Centre was also ordered to pay $1,900 to three members who complained to the OFT about the recently opened gym.
The matter was heard at the Southport Magistrates Court on 12 March by Magistrate Constanza. The owner did not appear.
"The gym took money from the members before it had even opened, which is not allowed," Mr Lawlor said.
"Gyms must also disclose and supply all relevant information when entering into agreements with members.
”However in this case none of the three members signed a contract, got a copy of an agreement with the gym, or information about its membership terms and conditions."
Mr Lawlor said when the gym did open, two of the complainants were not given access keys to use the gym's 24 hour facilities.
"It came to the point when all three complainants asked to cancel their membership within the cooling off period. The gym refused to repay them their money."
Mr Lawlor said Magistrate Constanza ordered Oxygym Lifestyle Centre to repay each complainant the membership fee they paid: $500, $500 and $900.
He said the $3,000 was for a breach of section 90 of the Fair Trading Act 1989, which was at the heart of an OFT inspector's power to obtain information to investigate and resolve matters for consumers.
"Our inspectors need to gather information to verify and take action on complaints received from Queenslanders," Mr Lawlor said.
"In this case, the gym did not fully assist the Office and gave no explanation why. By doing so, it hindered the investigation."
To lodge a complaint or report information to the Office of Fair Trading, visit www.fairtrading.qld.gov.au or call 13 13 04.
