Kaya News Reporter
A Germiston-based gym has launched a complaint with the Competition Commission to investigate unfair business practice against Discovery Vitality.
Body Action Gym argued that Discovery subsidised their members’ gym fees by up to 100% if they signed up to either a Virgin Active or Planet Fitness.
The independently-owned gym said Discovery Vitality did not allow other gyms the same arrangement and subsidised only a small percentage of their gym fees.
This meant gyms operating outside this arrangement suffered because members chose participating gyms.
Monopolising on the fitness industry, Discovery Vitality is accused of creating a bottlenecking competitors in the space.
CEO of Body Action Gym, Antonio Lozzo said he is taking on the fight on behalf of all independent gym operators in the country.
“Over the past 20 years, the gym industry has been monopolised and operated like a cartel by the largest privately-owned medical aid being Discovery Health through their Vitality reward programme between Virgin Active and Planet Fitness.”
A formal complaint has been lodged with the Competition Commission over unfair business practice.
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