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ACCC chairman Rod Sims

A FITNESS club that claimed the carbon price would drive up the price of its gym memberships has been fined $6600 by the Australian Competition and Consumer Commission.

Genesis Fitness Club in Berwick, Victoria, becomes the first business to be fined for making misleading claims about the impact of the controversial carbon tax, which came into effect on July 1.

The club sent a letter to more than 2000 of its members in April promoting a "rate freeze", offering its members a range of lengthy contract extensions at current or reduced membership rates.

The club told members that taking up the offer would help them avoid a 9-15% fee increase arising from the carbon tax.

It is believed more than 200 members took up the offer.

On top of the hefty fine, members who accepted the offer have been offered the opportunity to withdraw from the contract extension at no extra cost.

ACCC chairman Rod Sims said this was a good outcome who may have been misled by the health club's claims. Mr Sims said the gym did not have a "reasonable basis" for its claim.

"We are concerned that the false claims about the carbon price may have encouraged these people to sign lengthy contract extensions they otherwise would not have," Mr Sims said. "Businesses are free to set their prices as they see fit, but must carefully consider the basis for making carbon price claims and ensure such claims are truthful and have a reasonable basis."

Genesis Fitness Club operates more than 50 health clubs across Australia, including one in Coffs Harbour and Tweed Heads.

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Carbon tax fine for fitness club

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