OFFICE OF CONSUMER AFFAIRS

Registration Requirements

Health spas in Virginia are required to register with the Office of Consumer Affairs (OCA) at the Virginia Department of Agriculture and Consumer Services, and comply with the provisions of the Virginia Health Spa Act (Act) (Virginia Code Sections 59.1-294 - 310).

You may check on the registration status of a particular health spa -as defined below- by calling us on the Consumer Protection Hotline.

What is a "Health Spa?"

The Act defines a health spa as "any person, firm, corporation, organization, club or association engaged in the sale of memberships in a program of physical exercise, which included the use of one or more of a sauna, whirlpool, weight-lifting room, massage, steam room, or exercising room or device."

Within the context of the Act, the term "health spa" does not include " bona fide nonprofit organizations, including, but not limited to, the Young Men's Christian Association, Young Women's Christian Association, or similar organizations whose functions as health spas are only incidental to their overall functions and purposes; any private club owned and operated by its members; any organization primarily operated for the purpose of teaching a particular form of self-defense such as judo or karate; any facility owned or operated by the United States; any facility owned or operated by the Commonwealth of Virginia or any of its political subdivisions; any nonprofit public or private school, college or university, and any club providing tennis or swimming facilities located in a residential planned community or subdivision, developed in conjunction with the development of such community or subdivision, and deriving at least eighty percent of its membership from residents of such community or subdivision; and any facility owned and operated by a private employer exclusively for the benefit of its employees, retirees, and family members and which facility is only incidental to the overall functions and purposes of the employer's business and is operated on a nonprofit basis."

What You Should Know About Your Contract

All health spa contracts must be in writing and you must be given a copy of the agreement at the time the contract is executed.

All health spa contracts must contain a three-day, penalty free cancellation clause.

In some cancellations, the consumer is entitled to a refund, figured proportionately to the value of services already received.

No health spa contract may be sold for a period of longer than thirty-six months, including any renewal period except under the following provisions:

• Any initiation fee does not exceed ten times the initial monthly fee.
• All payments for health spa services, other than the initiation fee, are collected as monthly fees on a monthly basis.
• After an initial term of not more than twelve months, either party may cancel the health spa contract upon not more than thirty days' notice.
• The monthly fee is never reduced below eighty percent of the monthly fee at the time the contract is initially executed.

Lifetime memberships are prohibited.

Any spa accepting money in excess of the prorated monthly fee for the month when the contract is initially executed plus one month's fees, or accepts any initiation fee in excess of $75, must post a bond or letter of credit which may be used to reimburse members in the event the spa goes out of business.

Any spa which does not post a bond or letter of credit must include a statement in their contracts which reads as follows: "This spa is not permitted, pursuant to the Virginia Health Spa Act, to accept any initiation fee in excess of seventy-five dollars or any payment for more than the prorated monthly fee for the month when the contract is initially executed plus one full month in advance."

Health spas selling contracts on a prepayment basis must disclose in the contract the date on which the spa will open. This date must not be more than 12 months from the signing of the contract. Consumers are entitled to a refund after the date specified if the facility does not open.

If the owner of a health spa has previously owned a spa which closed down and did not refund its members or provide alternate facilities, this information must be disclosed in ten-point bold-faced type or larger on the front of the health spa contract.

Buyer's Right to Cancel

The "BUYER'S RIGHT TO CANCEL" must be included in the health spa contract. The buyer may cancel under the following conditions:

• Upon written notice to the spa within three business days after signing the contract.
• If the spa moves or closes and fails to provide alternative facilities, which will fully honor the buyer's contract, within five driving miles of the original location as stated in the contract.
• If the consumer dies or becomes disabled and unable to use the facilities.

Contract Voidable

Health spa contracts that do not comply with the Act are voidable at the consumer's option.

The consumer may not waive his or her rights under the Act.

Any health spa contract shall be void and unenforceable when a consumer enters into it through any false or misleading information provided by the health spa.

Miscellaneous Provisions

Any health spa selling contracts on a prepayment basis prior to the facility opening must notify OCA of the proposed location and deposit all funds received from such contracts in an approved financial institution. These funds are not eligible for withdrawal until 30 days after the spa has opened, provided services, and OCA has granted authorization.

Upon written request, every health spa must make prepayment bank account records and membership contracts available to OCA for inspection and copying.

Any violation of the Act shall be subject to the enforcement provisions of the Virginia Consumer Protection Act.