Tips for health and wellness businesses regarding your continuing service contracts

Many of the contracts that consumers enter into with fitness clubs, self-defense training, dance instruction and weight loss programs are considered continuing service contracts. Here are some general tips for health and wellness businesses to help you ensure that your contracts are in compliance with the law.

• Continuing service contracts must contain certain information, including a notice of the consumer’s right to cancellation, in a prescribed form.  (Click here to view Sections 19, 23(2) and 24(1) of the BPCP Act, which outlines all required content. Click here to view a copy of Schedule A in the Consumer Contract Regulation.)
• A supplier must give a copy of the contract to the consumer within 15 days after they enter into the contract.
• If a consumer cancels a contract within 10 days after the date they receive a copy of the contract, the supplier must refund to the consumer “without deduction” all money received with respect to the contract.
• Contracts that mention a non-refundable enrollment fee being withheld if the contract is cancelled within the 10 days are not in compliance with the law.
• Continuing service contracts may exceed 2 years by reverting to a month-to-month contract. This is agreed to by the consumer upon acceptance of the initial contract.  At the end of the term, the consumer has the right to cancel the contract by giving the business 30 days written notice at any time and at no additional cost. These cancellation rights must be clearly stated in the business’ contract. (Click here to view a PDF of the Order In Council effective July 1, 2006.)