A POPULAR gym’s cancellation policy has come under fire for its practices, even catching the attention of law officials.
In one major US state, multiple gyms paid out money to users after it was found that their cancellation policies were too strict.
A popular gym’s cancellation policy has come under fire for its practices, even catching the attention of law officials.[/caption]
In Long Island, New York, Aneva Gym has agreed to settle with users who claimed they got stuck with memberships they didn’t want.
Attorney General Letitia James announced the settlement this week, which will also see Aneva Gym change its policy to make it easier to cancel memberships.
It was found that Aneva Gym’s cancellation policy broke state law, which allows consumers to cancel their membership online, by mail, by phone or in person.
But it was found that Aneva Gym forced its members to cancel in writing and in person.
Aneva Gym also forced patrons to cancel 30 days before their memberships renewed.
This violates state law, which allows consumers to cancel up to three business days after a monthly membership restarts or 15 days for an annual membership.
The gym also didn’t provide members with contracts, which are required by law.
Aneva Gym will be paying out an additional $5,000 to the attorney general’s office.
This is for failing to post a legally required bond with the Department of State when it opened.
James said in a statement: “Aneva Gym misled its customers, causing many to keep paying for gym memberships that they should have been able to easily cancel.
“Clear contracts and simple cancellation processes protect consumers.
“I will continue to enforce our laws to make sure businesses do not take advantage of New Yorkers.”
Howard Rubin, an attorney for Aneva, added: “We’re grateful that the attorney general found that we were acting with good intentions, and we welcome the opportunity to comply with the regulations, which, frankly, we should have known but were unaware of.”
MORE SETTLEMENTS
Other major gyms in the state have been forced to pay out huge sums to settle claims against them.
What’s a class-action settlement?
Class action lawsuits offer groups of people, or ‘classes,’ a way to band together in court.
These suits are often brought by one or a few people who allege a company or other entity has wronged a large group of people.
When a suit becomes a class action, it extends to all “class members,” or people who may have similar complaints to those who filed the suit.
Companies often settle class actions – offering payment to class members who typically waive their right to pursue further legal action by accepting money.
These payout agreements frequently include statements by the defendant denying wrongdoing. Companies tend to settle class actions to avoid the costs of further litigation.
Pollution, discrimination, or false advertising are a few examples of what can land a class action on a company’s doorstep.
In June, Equinox and its sister brand SoulCycle came under investigation for their practices between February 2021 and July 2024.
It was found that neither company properly informed consumers about strict cancellation policies and memberships that automatically renew.
James’ investigation found that Equinox gyms did not make it clear that monthly memberships forced users into a minimum yearlong obligation.
As a result, parent company Equinox Group will have to pay up to a collective $600,000 to New Yorkers.
Equinox Group has agreed to pay out up to $250 to every person who has complained about the company’s practices.
On top of this, anyone who signed up for Equinox, SoulCycle, or Equinox+ online fitness classes is also entitled to up to $100 in compensation.
This is specifically between February 9, 2021, and May 19 of this year.
Equinox Group is also required to change its policies due to the agreement reached as part of the settlement.
Dan Bank, a spokesperson for Equinox, said: “Prior to being made aware of this inquiry, we had already begun to make changes to our terms and conditions in conformance with all statutory requirements, and our policies are in full compliance.
“We are pleased that this matter is resolved.”
In Long Island, New York, Aneva Gym has agreed to settle with users who claimed they got stuck with memberships they didn’t want[/caption]
