The woman, who asked to remain anonymous, said she saw an advertisement by Dunedin gym Am I Fit.
It said: "I’m looking for 40 people who are looking to transform their bodies and lives in 6 weeks for FREE."
It provided a link to a sign-up page claiming there were only six spots left in the challenge, and "this is the last day to register!"
The claim about "today" being the last day to register appeared on the page every day of last week, while the number of spots left stayed at six. There was no mention of a deposit in the sign-up page or social media advertising.
After signing up, the woman said she was invited to attend a consultation last month at the gym’s Willis St premises.
At the consultation, a trainer outlined the six-week challenge’s regimen of meal plans and workouts, which "all seemed really good", she said.
However, at the end of the consultation the trainer disclosed the challenge required a $500 deposit, only refundable if she lost either 11kg or 6% of her body fat.
The woman, for whom "money is tight", said she would not have attended the consultation for the apparently free challenge had she known about the deposit.
"It was sprung on you ... it’s clearly false advertising".
She was annoyed to have spent petrol money travelling to a consultation advertised under false pretences.
Consumer NZ head of research Jessica Wilson said the fact the gym had not mentioned the deposit in its advertising was "misleading", and risked a hefty fine."Companies can’t advertise a ‘free’ service and then turn around and charge consumers a fee.
"Any trader that does so risks breaching the Fair Trading Act and a fine of up to $600,000.
"A service advertised as free has to be just that — free of any charge," she said.
Am I Fit Dunedin owner and head trainer Mike Ivamy said last week 59 people had paid the $500 deposit to sign up for the six-week challenge, starting today. The challenge was an American concept, run though a company called Gym Launch, which claims to help "existing gym owners get their gyms to full capacity within 28 days".
"This is my first campaign," he said.
Mr Ivamy said he should have disclosed that a $500 deposit was required for the challenge, and apologised for any confusion the advertisement had caused.
"If people have been misled ... that was not my intention.
"People are hooked up on a little bit of wording which will be remedied next time.
"All the cards were put on the table during the consultation" regarding the $500 deposit, and applicants who did not have 11kg or 6% body fat to lose were not accepted.
"If a financial incentive is what drives people to make a positive change in their life then that’s awesome. As the contract says, [the deposit] goes straight back to them once they hit their targets."
He conceded the sign-up page stating "this is the last day to register" and "only 6 spots left" was a template recommended by Gym Launch, and was inaccurate. And the before-and-after weight loss images on the page did not depict Am I Fit clients.
Mr Ivamy also offered to refund the woman’s petrol money.
University of Otago professor of human nutrition Jim Mann said shedding 11kg in six weeks was achievable and not necessarily unhealthy if combined with balanced diet and regular exercise.
