OTTAWA, February 9, 2005 -- Concerns over the marketing practices of GoodLife Fitness Clubs Inc. have been resolved by way of a consent agreement filed today with the Competition Tribunal. Acting on complaints received from consumers, the Competition Bureau commenced an investigation of the company, which owns and operates 90 fitness clubs in Alberta, Manitoba, Ontario, Quebec, New Brunswick and Nova Scotia. During the course of its investigation, the Bureau determined that a number of representations made by GoodLife in newspapers, on billboards and on storefront signs might raise issues under the Competition Act. In particular, the Bureau was of the view that GoodLife had failed to disclose additional mandatory fees in its advertising of membership offers. As a result, the actual price of memberships was greater than advertisements had led consumers to believe. It is a violation of the deceptive marketing practices provisions of the Competition Act to make representations that are false or misleading in a material respect. Once contacted by the Bureau, GoodLife took immediate steps to correct its advertising practices in order to conform with the law. This cooperation permits an outcome which satisfies the Competition Bureau's concerns without costly litigation. "The Bureau is committed to ensuring that consumers are not deceived by misleading advertising,"said Raymond Pierce, Deputy Commissioner, Competition Bureau. "Truth in advertising is fundamental to a marketplace that benefits consumers through fair and vigorous competition." Under the terms of the consent agreement, which will remain in effect for 10 years, GoodLife has agreed to: publish a corrective notice in certain newspapers throughout Ontario and Quebec and on its Web site; pay an administrative monetary penalty of $75,000; administer a new corporate compliance policy to cover their marketing practices; and not make false or misleading representations in future promotional material. The Competition Bureau is an independent law enforcement agency that promotes and maintains fair competition so that all Canadians can benefit from competitive prices, product choice and quality service. It oversees the application of the Competition Act, the Consumer Packaging and Labelling Act, the Textile Labelling Act and the Precious Metals Marking Act. - 30 - For media enquiries, please contact: Maureen McGrath Senior Communications Advisor Communications Branch (819) 953-8982, or (613) 296-2187 (cell) For general enquiries, please contact: Information Centre Competition Bureau (819) 997-4282 1-800-348-5358
