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The Busan area is facing growing consumer concerns due to the closure of a major Pilates company’s headquarters, leading to angry customers and complaints.
Operators in the region have also been found to have unjust and unfavorable terms and conditions.
According to the Korea Consumer Agency, the number of claims for damage relief related to gyms, Pilates, and yoga has been on the rise.
From 2020 to March 2023, 11,806 cases were reported, with an increasing trend in the Busan area, accounting for 641 cases.
Most of the damage occurred among consumers aged 20 to 30, with the majority of cases relating to gyms (80.4%), followed by Pilates (16.5%) and yoga (3.1%).
The most common type of damage was contract-related, constituting 95.6% of the cases.
Disputes over contract termination and refund refusals, as well as excessive penalties, were prevalent. The Busan area experienced the highest proportion of contract-related damage at 95.4%.
Terms and conditions played a significant role in consumer dissatisfaction. Unreasonable terms and conditions that restrict contract termination and refunds were identified in 61.9% of the analyzed cases.
Other problematic terms included restrictions on transfer and name changes (21.0%) and charging credit card fees (18.1%).
The mounting consumer damage and unfair business practices highlight the need for better regulations and protections in the Busan gym industry.
hin Chang-ho, Director of Digital Economy Innovation, advises individuals contemplating gym, yoga studio, or pilates memberships to be cautious about long-term contract structures amidst fierce competition to attract customers.
Issues such as penalty disputes during cancellations can lead to refund delays and other complications.
Shin emphasizes the importance of reasonable pricing and recommends carefully reviewing the contract’s terms and conditions before making a decision.
With consumer protection in mind, it is crucial for individuals to exercise due diligence and make informed choices when joining fitness centers.
