Commerce Commission takes CityFitness to court over allegedly misleading membership prices

The Commerce Commission alleges CityFitness did not include a compulsory 3% "transaction fee" in its advertised membership prices. Photo / Sandra Conchie

The Commerce Commission has filed charges under the Fair Trading Act against CityFitness Group for allegedly misleading customers over its membership prices.

The commission alleges CityFitness’ advertised membership prices did not include a compulsory 3% “transaction fee” and therefore were not accurate.

The competition watchdog told the Herald it had received 34 complaints about CityFitness and its transaction fees.

Vanessa Horne, Commerce Commission’s competition, fair trading, and credit general manager, said businesses should not exclude compulsory fees from their advertised prices, as it goes against consumers’ right to accurate pricing.

“It shouldn’t be a difficult exercise to work out how much your gym costs,” Horne said.

The charge period for the alleged misleading claims was between December 21, 2023 and April 30, 2025.

The commission said it also believes that the 3% fee wasn’t related to the cost of processing a transaction.

“Even a small per-person fee can add up to substantial profits for a large business,” Horne said.

“If a business states a fee or surcharge is for the cost of processing the transaction, this must be truthful and accurate.”

The Herald has contacted CityFitness for comment.

Horne said there was no excuse for false or misleading advertising.

“Consumers often shop around for the best deal, so if a business is advertising its prices as cheaper than they really are, it could give them an unfair advantage over competitors.

“This investigation and the charges we have filed should send a clear message – when we see prices that we think are misleading, the commission will act so that businesses are held to account.”

The commission filed 16 charges under sections 11, 13(g), and 40(1) of the Fair Trading Act against CityFitness.