Section § 1812.80

Explanation

This law emphasizes the importance of regulating the health studio industry because it significantly affects the California economy and community well-being. The goal is to protect people from fraud and financial hardship by ensuring fair competition and honesty in contracts for gym services. The law targets misleading advertising, unfair contract terms, and dishonest practices to help consumers make informed choices and prevent harm.

(a)CA Civil Law Code § 1812.80(a) The Legislature finds that the health studio industry has a significant impact upon the economy and well-being of this state and its local communities; and that the provisions of this title relating to contracts for health studio services are necessary for the public welfare.
(b)CA Civil Law Code § 1812.80(b) The Legislature declares that the purpose of this title is to safeguard the public against fraud, deceit, imposition and financial hardship, and to foster and encourage competition, fair dealing, and prosperity in the field of health studio services by prohibiting or restricting false or misleading advertising, onerous contract terms, harmful financial practices, and other unfair, dishonest, deceptive, destructive, unscrupulous, fraudulent, and discriminatory practices by which the public has been injured in connection with contracts for health studio services.

Section § 1812.81

Explanation

This section defines what a "contract for health studio services" is. It covers agreements for things like gym memberships, personal training, or using a fitness facility's equipment. However, it does not include contracts for services by licensed professionals, educational courses at schools, or diet-related classes that don't involve physical activities or skills.

As used in this title, “contract for health studio services” means a contract for instruction, training or assistance in physical culture, body building, exercising, reducing, figure development, or any other such physical skill, or for the use by an individual patron of the facilities of a health studio, gymnasium or other facility used for any of the above purposes, or for membership in any group, club, association or organization formed for any of the above purposes; but does not include (a) contracts for professional services rendered or furnished by a person licensed under the provisions of Division 2 (commencing with Section 500) of the Business and Professions Code, (b) contracts for instruction at schools operating pursuant to the provisions of the Education Code, or (c) contracts for instruction, training, or assistance relating to diet or control of eating habits not involving physical culture, body building, exercising, figure development, or any other such physical skill.

Section § 1812.82

Explanation
Whenever you sign up for a membership at a gym or health club, the contract must be written down. You should receive a copy of the contract, either physically or by email, as soon as you sign it.
Every contract for health studio services shall be in writing and shall be subject to the provisions of this title. A copy of the written contract shall be physically given to or delivered by email to the customer at the time he or she signs the contract.

Section § 1812.83

Explanation

If you have multiple contracts for health club or gym services with the same company and the same user, and their durations overlap in any way, they're treated as a single contract under this law.

All contracts for health studio services, which may be in effect between the same seller and the same buyer, the terms of which overlap for any period, shall be considered as one contract for the purposes of this title.

Section § 1812.84

Explanation

This law sets rules for health club contracts. First, such contracts cannot make you pay for more than three years. If you're ending the contract, you might owe fees but only for a maximum of 30 more days. Second, the contract must clearly state the length of the contract term in big, easy-to-read print above where you sign. Lastly, you can cancel the contract whenever it's allowed by law, and this can be done in person, by email, or by mail.

(a)CA Civil Law Code § 1812.84(a) A contract for health studio services may not require payments or financing by the buyer to exceed the term of the contract, nor may the term of the contract exceed three years. This subdivision does not apply to a member’s obligation to pay valid, outstanding moneys due under the contract, including moneys to be paid pursuant to a termination notice period in the contract in which the termination notice period does not exceed 30 days.
(b)CA Civil Law Code § 1812.84(b) A contract for health studio services shall include a statement printed in a size at least 14-point type or presented in an equally legible electronic format that discloses the initial or minimum length of the term of the contract. This statement shall be placed above the space reserved for the signature of the buyer.
(c)CA Civil Law Code § 1812.84(c) At any time a cancellation is authorized by this title, a contract for health studio services may be canceled by the buyer in person, via email from an email address on file with the health studio, or via first-class mail.

Section § 1812.85

Explanation

This law sets rules for health studio contracts in California. If you sign a contract with a gym, they must start the service within six months. If they don't meet their promises, you can cancel and get a partial refund. The contract must clearly show your cancellation rights in bold, near where you sign. You can cancel for various reasons, such as if the gym doesn't offer facilities as promised or if you've paid certain high fees. Depending on the total payment amount, you have different time windows ranging from 20 to 45 days to cancel. After cancellation, the gym must refund any unused portion of your payment within 10 days.

(a)CA Civil Law Code § 1812.85(a) Every contract for health studio services shall provide that performance of the agreed-upon services will begin within six months after the date the contract is entered into. The consumer may cancel the contract and receive a pro rata refund if the health studio fails to provide the specific facilities advertised or offered in writing by the time indicated. If no time is indicated in the contract, the consumer may cancel the contract within six months after the execution of the contract and shall receive a pro rata refund. If a health studio fails to meet a timeline set forth in this section, the consumer may cancel the contract at any time after the expiration of the timeline. However, if following the expiration of the timeline, the health studio provides the advertised or agreed-upon services, the consumer may cancel the contract up to 10 days after those services are provided.
(b)Copy CA Civil Law Code § 1812.85(b)
(1)Copy CA Civil Law Code § 1812.85(b)(1) Every contract for health studio services shall, in addition, contain on its face, and in close proximity to the space reserved for the signature of the buyer, a conspicuous statement in a size equal to at least 10-point boldface type, as follows:
“You, the buyer, may choose to cancel this agreement at any time prior to midnight of the fifth business day of the health studio after the date of this agreement, excluding Sundays and holidays. To cancel this agreement, mail, email, or deliver a signed and dated notice that states that you, the buyer, are canceling this agreement, or words of similar effect. The notice shall be sent via first-class mail, via email from an email address on file with the health studio, or delivered in person to
_____ (Name of health studio operator) _____
at _____ (Address and email address of health studio operator).” _____
(2)CA Civil Law Code § 1812.85(2) The contract for health studio services shall contain on the first page, in a type size no smaller than that generally used in the body of the document, the following: (A) the name and mailing address of the health studio operator to which the notice of cancellation is to be mailed, (B) the email address of the health studio operator to which a notice of cancellation email is to be sent, and (C) the date the buyer signed the contract.
(3)CA Civil Law Code § 1812.85(3) The contract shall provide a description of the services, facilities, and hours of access to which the consumer is entitled or state where that information is available on the health studio operator’s Internet Web site. Any services, facilities, and hours of access that are not described in the contract or on the health studio operator’s Internet Web site shall be considered optional services, and these optional services shall be considered as separate contracts for the purposes of this title and Section 1812.83.
(4)CA Civil Law Code § 1812.85(4) Until the health studio operator has complied with this section, the buyer may cancel the contract for health studio services.
(5)CA Civil Law Code § 1812.85(5) All moneys paid pursuant to a contract for health studio services shall be refunded within 10 days after receipt of the notice of cancellation, except that payment shall be made for any health studio services received prior to cancellation.
(c)CA Civil Law Code § 1812.85(c) If at any time during the term of the contract, including a transfer of the contractual obligation, the health studio eliminates or substantially reduces the scope of the facilities, such as swimming pools or tennis courts, that were described in the contract, in an advertisement relating to the specific location, or in a written offer, and available to the consumer upon execution of the contract, the consumer may cancel the contract and receive a pro rata refund. The consumer may not cancel the contract pursuant to this subdivision if the health studio, after giving reasonable notice to its members, temporarily takes facilities out of operation for reasonable repairs, modifications, substitutions, or improvements. This subdivision shall not be interpreted to give the consumer the right to cancel a contract because of changes to the type or quantity of classes or equipment offered, provided the consumer is informed in the contract that the health studio reserves the right to make changes to the type or quantity of classes or equipment offered and the changes to the type or quantity of classes or equipment offered are reasonable under the circumstances.
(d)Copy CA Civil Law Code § 1812.85(d)
(1)Copy CA Civil Law Code § 1812.85(d)(1) If a contract for health studio services requires payment of one thousand five hundred dollars ($1,500) to two thousand dollars ($2,000), inclusive, including initiation fees or initial membership fees, by the person receiving the services or the use of the facility, the person shall have the right to cancel the contract within 20 days after the contract is executed.
(2)CA Civil Law Code § 1812.85(d)(2) If a contract for health studio services requires payment of two thousand one dollars ($2,001) to two thousand five hundred dollars ($2,500), inclusive, including initiation fees or initial membership fees, by the person receiving the services or the use of the facility, the person shall have the right to cancel the contract within 30 days after the contract is executed.
(3)CA Civil Law Code § 1812.85(d)(3) If a contract for health studio services requires payment of two thousand five hundred one dollars ($2,501) or more, including initiation fees or initial membership fees, by the person receiving the services or the use of the facility, the person shall have the right to cancel the contract within 45 days after the contract is executed.
(4)CA Civil Law Code § 1812.85(d)(4) The right of cancellation provided in this subdivision shall be set out in the membership contract.
(5)CA Civil Law Code § 1812.85(d)(5) The rights and remedies under this paragraph are cumulative to any rights and remedies under other law.
(6)CA Civil Law Code § 1812.85(d)(6) A health studio entering into a contract for health studio services that requires a payment of less than one thousand five hundred dollars ($1,500), including initiation or initial membership fees and exclusive of interest or finance charges, by the person receiving the services or the use of the facilities, is not required to comply with paragraph (1), (2), or (3).
(e)CA Civil Law Code § 1812.85(e) Upon cancellation, the consumer shall be liable only for that portion of the total contract payment, including initiation fees and other charges however denominated, that has been available for use by the consumer, based upon a pro rata calculation over the term of the contract. The remaining portion of the contract payment shall be returned to the consumer by the health studio.

Section § 1812.86

Explanation

This law sets a cap on the total amount that a person can be charged for health studio services in California. As of 2006, the maximum allowed charge, including any start-up or membership fees but excluding any interest or finance charges, is $3,000. This cap increases to $4,400 starting in 2010.

(a)CA Civil Law Code § 1812.86(a) No contract for health studio services shall require payment by the person receiving the services or the use of the facilities of a total amount in excess of the amount specified in subdivision (b) or (c).
(b)CA Civil Law Code § 1812.86(b) The limit specified in subdivision (a) shall, on and after January 1, 2006, be three thousand dollars ($3,000), inclusive of initiation or initial membership fees and exclusive of interest or finance charges.
(c)CA Civil Law Code § 1812.86(c) The limit in subdivision (a) shall, on and after January 1, 2010, be four thousand four hundred dollars ($4,400), inclusive of initiation or initial membership fees and exclusive of interest or finance charges.

Section § 1812.87

Explanation

This law says that when you sign a contract with a gym or health club, the contract can't include any notes or financial agreements that prevent you from defending yourself or taking action against the gym if there is a problem.

No contract for health studio services shall require or entail the execution of any note or series of notes by the buyer which when separately negotiated will cut off as to third parties any right of action or defense which the buyer may have against the seller.

Section § 1812.88

Explanation

If you buy a contract for health studio services and have claims or defenses against the seller, those won't disappear just because the contract is handed over to someone else. The new owner of the contract, known as an assignee, must tell you in writing about the transfer. You have 30 days to inform them in writing about any issues you have with the contract, or your rights might be at risk. The notification must include the names of both the seller and the buyer, details about the services, the remaining balance, and payment details.

No right of action or defense arising out of a contract for health studio services which the buyer has against the seller, and which would be cut off by assignment, shall be cut off by assignment of the contract to any third party whether or not he acquires the contract in good faith and for value unless the assignee gives notice of the assignment to the buyer as provided in this section and within 30 days of the mailing of notice receives no written notice of the facts giving rise to the claim or defense of the buyer. A notice of assignment shall be in writing addressed to the buyer at the address shown on the contract and shall identify the contract and inform the buyer that he must, within 30 days of the date of mailing of the notice, notify the assignee in writing of any facts giving rise to a claim or defense which he may have. The notice of assignment shall state the name of the seller and buyer, a description of the services, the contract balance and the number and amount of the installments.

Section § 1812.89

Explanation

This law states that health studio contracts must include a clause saying that if you can't use the services due to death or a disability confirmed by a doctor, you're not responsible for paying for services you didn't use, and you should get a refund for any services prepaid but not used. If someone moves more than 25 miles away and can't transfer their contract to a similar studio, they're also excused from making further payments and should get a refund for unused prepaid services. But, if the contract includes it, you might be charged a small fee for canceling—$100 or less if it's early in the contract, or $50 if most of the contract term has passed.

(a)Copy CA Civil Law Code § 1812.89(a)
(1)Copy CA Civil Law Code § 1812.89(a)(1) Every contract for health studio services shall contain a clause providing that if, by reason of death or disability, the person agreeing to receive services is unable to receive all services for which he has contracted, he and his estate shall be relieved from the obligation of making payment for services other than those received prior to death or the onset of disability, and that if he has prepaid any sum for services, so much of such sum as is allocable to services he has not taken shall be promptly refunded to him or his representative.
(2)CA Civil Law Code § 1812.89(a)(2) In every case in which a person has prepaid a sum for services under a contract for health studio services, and by reason of death or disability, is unable to receive all such services, the party agreeing to furnish such services shall, on request, immediately refund to such person or his personal representative such amount of the sum prepaid as is proportionate to the amount of services not received.
(3)CA Civil Law Code § 1812.89(a)(3) For the purposes of this section, “disability” means a condition which precludes the buyer from physically using the facilities and the condition is verified by a physician.
(4)CA Civil Law Code § 1812.89(a)(4) Notwithstanding the provisions of any contract to the contrary, whenever the contract price is payable in installments and the buyer is relieved from making further payments or entitled to a refund under this section, the amount of the contract price allocable to services not received shall represent at least as great a proportion of the total contract price as the sum of the periodic monthly balances not yet due bears to the sum of all the periodic monthly balances under the schedule of installments in the contract.
(b)Copy CA Civil Law Code § 1812.89(b)
(1)Copy CA Civil Law Code § 1812.89(b)(1) Except as provided in paragraph (2), every contract for health studio services shall contain a clause providing that if the person agreeing to receive health studio services moves further than 25 miles from the health studio and is unable to transfer the contract to a comparable facility, such person shall be relieved from the obligation of making payment for services other than those received prior to the move, and if such person has prepaid any sum for health studio services, so much of such sum as is allocable to services he or she has not taken shall be promptly refunded.
(2)CA Civil Law Code § 1812.89(b)(2) Notwithstanding paragraph (1), a contract for health studio services may contain a clause providing that if the person agreeing to receive health studio services moves further than 25 miles from the health studio and is unable to transfer the contract to a comparable facility, such person may be charged a predetermined fee not exceeding one hundred dollars ($100), or, if more than half the life of the contract has expired, such person may be charged a predetermined fee not exceeding fifty dollars ($50).

Section § 1812.90

Explanation

This law means that even if a contract complies with this specific set of rules, it still has to follow all other relevant laws. It doesn't get a free pass from any other legal obligations.

The provisions of this title are not exclusive and do not relieve the parties or the contracts subject thereto from compliance with all other applicable provisions of law.

Section § 1812.91

Explanation

If a health studio contract doesn't follow the rules laid out in this section, it's not valid and can't be enforced because it goes against the public's interest.

Any contract for health studio services which does not comply with the applicable provisions of this title shall be void and unenforceable as contrary to public policy.

Section § 1812.92

Explanation

If a health studio service contract is based on intentionally fake or misleading information from the seller, that contract cannot be enforced and is considered invalid.

Any contract for health studio services entered into in reliance upon any willful and false, fraudulent, or misleading information, representation, notice or advertisement of the seller shall be void and unenforceable.

Section § 1812.93

Explanation

This law means that if a buyer agrees to give up their rights under this title, that agreement won't count and can't be enforced because it's against public policy.

Any waiver of the buyer of the provisions of this title shall be deemed contrary to public policy and shall be void and unenforceable.

Section § 1812.94

Explanation

If a buyer is harmed because a seller violated certain rules, they can sue for damages. If successful, the court could make the seller pay three times the actual damages plus reasonable legal fees. However, if the seller fixes the issue within 30 days of signing the contract, they won't face penalties, as long as the buyer agrees in writing to any changes that raise payments or total costs. 'Holder' refers to anyone who takes over the contract, like a seller or financing agency.

(a)CA Civil Law Code § 1812.94(a) Any buyer injured by a violation of this title may bring an action for the recovery of damages. Judgment may be entered for three times the amount at which the actual damages are assessed plus reasonable attorney fees.
(b)CA Civil Law Code § 1812.94(b) Notwithstanding the provisions of this title, any failure to comply with any provision of this title may be corrected within 30 days after the execution of the contract by the buyer, and, if so corrected, neither the seller nor the holder shall be subject to any penalty under this title, provided that any correction which increases any monthly payment, the number of payments, or the total amount due, must be concurred in, in writing, by the buyer. “Holder” includes the seller who acquires the contract or, if the contract is purchased by a financing agency or other assignee, the financing agency or other assignee.

Section § 1812.95

Explanation

If any part of this law is found to be unconstitutional or invalid for a specific situation or person, it doesn't mean the entire law is invalid. The rest of the law still stands and can be applied to other situations and people.

If any provision of this title or the application thereof to any person or circumstances is held unconstitutional, the remainder of the title and the application of such provision to other persons and circumstances shall not be affected thereby.

Section § 1812.96

Explanation

This law makes sure that any money you pay for a gym that hasn't opened yet is kept safe. The money must be held in a special bank account until five days after the gym opens, and you can get a full refund if you cancel your membership before then. If the gym company has a special financial bond, they can use the money to give refunds even before opening. But, if the company already runs at least five gyms in California and meets certain financial requirements, they don't have to follow these rules.

(a)CA Civil Law Code § 1812.96(a)Except as provided in subdivision (c) or (d), all money received by the seller of health studio services from a consumer for a health studio facility that has not yet opened for business shall be held in trust and shall be deposited in a trust account established in a state or federally chartered bank or savings association. The seller shall not draw, transfer, or encumber any of the money held in trust until five business days after the health studio facility has opened and the seller has fully paid refunds to consumers who canceled their contracts as provided in subdivision (b) or in Section 1812.85.
(b)CA Civil Law Code § 1812.96(b) In addition to any other cancellation rights, a consumer who pays any money under a contract for health studio services for a health studio facility that has not yet opened for business has the right to cancel the contract and receive a full refund at any time prior to midnight of the fifth business day after the date the health studio opens for business. The cancellation right shall be set forth in the contract. The refund shall be paid within 10 days of receipt of notice of cancellation.
(c)CA Civil Law Code § 1812.96(c) Notwithstanding subdivision (a), a seller of health studio services may draw on money held in trust to pay refunds or may draw, transfer, or encumber funds to the extent that the amount is offset by a bond of equal or greater amount that satisfies this subdivision. The bond shall be issued by a surety insurer admitted to do business in this state and shall be filed with the Secretary of State. The bond shall be in favor of the State of California for the benefit of consumers harmed by a violation of this title.
(d)CA Civil Law Code § 1812.96(d) Subdivision (a) does not apply to a seller of health studio services that is, at the time money is received from the consumer, operating at least five health studio facilities in this state that have been in operation for a period of at least five years, and that has an excess of current assets over current liabilities of at least one million dollars ($1,000,000).

Section § 1812.98

Explanation

This law makes it clear that month-to-month contracts are allowed and has been part of the law already.

Nothing in this title is intended to prohibit month-to-month contracts. This section is declaratory of existing law.