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Aug 1

Fitness club first to get carbon tax fine

Fitness Comments Off on Fitness club first to get carbon tax fine

A FITNESS club has become the first Australian business to pay a fine for making a false claim about the carbon tax.

GFC Berwick, trading as Genesis Fitness Club, paid $6600 to the Australian Competition and Consumer Commission (ACCC) as penalty for sending a letter to its members in April promoting a "rate freeze" offer.

The fitness club said that by taking up the offer, members could avoid a fee increase of nine to 15 per cent because of the carbon price.

More than 200 members took up the offer and extended their contracts.

"This raised concerns for the ACCC as the representation enticed members to sign lengthy contract extensions on the basis of false claims about the impact of carbon pricing," ACCC chairman Rod Sims told a small-business conference in Melbourne on Wednesday.

"When approached, the fitness club could not provide any information that provided a reasonable basis for the claims made."

Mr Sims said the company's CEO had written to all affected members offering them the opportunity to withdraw from the contract extensions at no cost.

Assistant Treasurer David Bradbury told reporters in Sydney the case was a timely reminder to consumers and businesses.

"We are concerned to hear of any instances where false claims are being made in relation to the carbon price," he said.

"But we have strong confidence ... in the ACCC, in their capacities in pursuing these matters."

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Fitness club first to get carbon tax fine

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