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.