Get HCM digital magazine and ezines FREE
Sign up here ▸
Jobs   News   Features   Products   Magazine      Advertise  
NEWS
US gym operators facing lawsuits over membership fee collections during lockdown
POSTED 06 Apr 2020 . BY Tom Walker
Gyms and health clubs across the US closed their doors on 16 March Credit: Shutterstock
A number of US gym operators are facing lawsuits over their handling of membership fee collections during the coronavirus lockdown.

Town Sports International, 24 Hour Fitness and LA Fitness are among those facing class action lawsuits, after members said they had been charged for memberships despite their clubs being closed.

Members have also accused some operators of making cancelling memberships a "complicated process".

New York-based law practice Wigdor said it had filed a class action against Town Sports International (TSI) on 26 March on behalf of member Mary Namorato.

In a statement, the law firm said: "TSI has continued to charge its customers’ credit cards for monthly gym membership fees.

"Incredibly, TSI has made it virtually impossible for members to cancel their memberships.

"In stark contrast, numerous other gym brands such as Equinox, Planet Fitness and Blink Fitness have announced that gym membership charges have been frozen due to gym closures."

HCM has contacted TSI for a comment.

Meanwhile, budget operator 24 Hour Fitness has also been hit with a similar suit. Brenda Labib, a California resident, has filed a lawsuit in the state's courts, saying she had been charged for her membership after her 24 Hour Fitness club was closed on 16 March.

Explaining the company processes, 24 Hour Fitness CEO Tony Ueber has posted an open letter, saying the company would suspend collecting membership fees from 16 April, if clubs are not open by then.

"On March 16, we made the difficult decision to close all our clubs, and we announced at that time memberships would be extended to cover the time of club closures," Ueber writes in the letter.

"Based on current public health projections, it appears our clubs may need to be closed for an extended period of time.

"As such, we will suspend all membership billings, including billings for any additional services and fees, effective April 16, if we are unable to reopen clubs by that time in your area.

"For the membership billings that were charged from March 17 through April 15, members will receive additional days of access equal to the number of days paid for while the clubs were closed in your area.

"That extension will apply at the end of the membership. If you have a pre-paid membership, your end date will be extended to cover the amount of time the clubs are closed in your area.

"I realise that some of you may want to cancel, but I personally hope you don’t. For those of you with the desire to cancel you can go to 24hourfitness.com, click on the link and follow the instructions to submit your request to cancel."

A third lawsuit was filed in the Southern District of Florida on 30 March against Fitness International, the parent company of LA Fitness. A member there launched the case after saying they too had been charged full membership fees despite being unable to visit their club.

In response, LA Fitness has issued a statement, explaining its approach to membership fees during the closure.

"When we temporarily closed all of our clubs at the end of the day on March 16 we hoped that this would be a short-lived phenomenon.

"Once we determined that we would need to extend the temporary closure, we made the difficult and unwanted decision to temporarily furlough nearly all of our club employees.

"For our members we have waived “freeze” fees and suspended all billing. Some members were billed for a short period of time during which our clubs were closed.

"To address this, we immediately took the following steps. First, we automatically extended the membership time for all of those affected members. This means, for example, that if a member paid dues to use a club through March 31, then that member will have 15 additional days of membership time (corresponding to the 15 day period from March 17 through March 31) after their membership would have otherwise expired.

"Second, in appreciation for their patience during this confusion, we offered that same group of members the option to (1) take additional free membership time at the end of their membership or (2) receive a complimentary three-month membership to give to a new member which is redeemable over the next 12 months. We began notifying members with details about these options, and explaining how these options may be selected, over this past weekend.

"Finally, we have a team of employees spread out over our clubs, who continue to field questions from members about cancellations, refunds and credit options. We are being flexible in our resolutions to meet the needs of the members.

"We encourage members to first check to see if their questions were resolved in the email we sent with the options explained here. If not, we have Frequently Asked Questions posted on our phone app and website. If they still have questions, they can call or email us but again, we ask for patience as we do our best to assist everyone. The “call back” option is recommended as we are returning messages as soon as we can over the course of the week."
RELATED STORIES
  Global pandemic – research shows how the fitness sector is responding


Providing digital fitness content is emerging as a critical value driver for health club operators during the coronavirus (COVID-19) shutdown, according to a wide-ranging study on the effects of the pandemic on the global fitness industry.
  24 Hour Fitness begins US-wide club reopening process


Health club chain 24 Hour Fitness expects nearly 50 per cent of its clubs to be reopened by the end of June – with the remaining clubs to be reopened by late July or early August 2020.
MORE NEWS
RSG opens flagship John Reed in Berlin, as its builds out its 'world city' portfolio
With the launch of its 49th John Reed, RSG Group is looking for more opportunities for its high- end brand in the US and Europe, but is pausing UK expansion.
PureGym's new results set it up for accelerating growth
PureGym saw revenues rise by 15 per cent in 2023, with the company announcing plans to develop 200 new clubs in the next three to four years.
Deloitte says European health club market hit an all-time high for revenues in 2023
Following three disrupted lockdown years, the European fitness market bounced back in 2023, according to Deloitte and EuropeActive’s hot off the press European Health & Fitness Market Report 2024.
Workers' Educational Association and CLUK team up to launch Carbon Literacy Course
Community Leisure UK is helping the public sector’s drive to net zero with the launch of a bespoke Carbon Literacy course.
+ More news   
LATEST JOBS
Fitness Motivator and Personal Trainer
Everyone Active
Salary:
Job location: Market Rasen
Fitness Motivator and Personal Trainer
Everyone Active
Salary:
Job location: Gainsborough
+ More jobs  

FEATURED SUPPLIERS

Sibec EMEA to blend fitness with luxury at Fairmont Monte Carlo
Experience the pinnacle of fitness and luxury at the premier industry event, Sibec EMEA, set against the breathtaking backdrop of the Fairmont Monte Carlo this Autumn. [more...]

Study Active acquires Premier Global name and select branding assets
Study Active has legally acquired the name “Premier Global” and select Premier Global branding assets from Assessment Technologies Institute LLC, part of Ascend Learning in the US. [more...]
+ More featured suppliers  
COMPANY PROFILES
Physical

Physical is the UK’s go-to, one-stop shop for commercial grade fitness equipment and flooring, with [more...]
Serco Leisure

Serco Leisure Operating Limited is one of the UK’s leading national operators of leisure centres, de [more...]
+ More profiles  
CATALOGUE GALLERY
 
+ More catalogues  

DIRECTORY
+ More directory  
DIARY

 

22-24 Apr 2024

UK Aufguss Championships

Galgorm Resort, York,
23-25 Apr 2024

ISPA Conference 2024

Phoenix Convention Center, Phoenix, United States
+ More diary  
 
ABOUT LEISURE MEDIA
LEISURE MEDIA MAGAZINES
LEISURE MEDIA HANDBOOKS
LEISURE MEDIA WEBSITES
LEISURE MEDIA PRODUCT SEARCH
 
HCM
LEISURE OPPORTUNITIES
HEALTH CLUB HANDBOOK
PRINT SUBSCRIPTIONS
FREE DIGITAL SUBSCRIPTIONS
ADVERTISE . CONTACT US

Leisure Media
Tel: +44 (0)1462 431385

©Cybertrek 2024
Get HCM digital magazine and ezines FREE
Sign up here ▸
Jobs    News   Products   Magazine
NEWS
US gym operators facing lawsuits over membership fee collections during lockdown
POSTED 06 Apr 2020 . BY Tom Walker
Gyms and health clubs across the US closed their doors on 16 March Credit: Shutterstock
A number of US gym operators are facing lawsuits over their handling of membership fee collections during the coronavirus lockdown.

Town Sports International, 24 Hour Fitness and LA Fitness are among those facing class action lawsuits, after members said they had been charged for memberships despite their clubs being closed.

Members have also accused some operators of making cancelling memberships a "complicated process".

New York-based law practice Wigdor said it had filed a class action against Town Sports International (TSI) on 26 March on behalf of member Mary Namorato.

In a statement, the law firm said: "TSI has continued to charge its customers’ credit cards for monthly gym membership fees.

"Incredibly, TSI has made it virtually impossible for members to cancel their memberships.

"In stark contrast, numerous other gym brands such as Equinox, Planet Fitness and Blink Fitness have announced that gym membership charges have been frozen due to gym closures."

HCM has contacted TSI for a comment.

Meanwhile, budget operator 24 Hour Fitness has also been hit with a similar suit. Brenda Labib, a California resident, has filed a lawsuit in the state's courts, saying she had been charged for her membership after her 24 Hour Fitness club was closed on 16 March.

Explaining the company processes, 24 Hour Fitness CEO Tony Ueber has posted an open letter, saying the company would suspend collecting membership fees from 16 April, if clubs are not open by then.

"On March 16, we made the difficult decision to close all our clubs, and we announced at that time memberships would be extended to cover the time of club closures," Ueber writes in the letter.

"Based on current public health projections, it appears our clubs may need to be closed for an extended period of time.

"As such, we will suspend all membership billings, including billings for any additional services and fees, effective April 16, if we are unable to reopen clubs by that time in your area.

"For the membership billings that were charged from March 17 through April 15, members will receive additional days of access equal to the number of days paid for while the clubs were closed in your area.

"That extension will apply at the end of the membership. If you have a pre-paid membership, your end date will be extended to cover the amount of time the clubs are closed in your area.

"I realise that some of you may want to cancel, but I personally hope you don’t. For those of you with the desire to cancel you can go to 24hourfitness.com, click on the link and follow the instructions to submit your request to cancel."

A third lawsuit was filed in the Southern District of Florida on 30 March against Fitness International, the parent company of LA Fitness. A member there launched the case after saying they too had been charged full membership fees despite being unable to visit their club.

In response, LA Fitness has issued a statement, explaining its approach to membership fees during the closure.

"When we temporarily closed all of our clubs at the end of the day on March 16 we hoped that this would be a short-lived phenomenon.

"Once we determined that we would need to extend the temporary closure, we made the difficult and unwanted decision to temporarily furlough nearly all of our club employees.

"For our members we have waived “freeze” fees and suspended all billing. Some members were billed for a short period of time during which our clubs were closed.

"To address this, we immediately took the following steps. First, we automatically extended the membership time for all of those affected members. This means, for example, that if a member paid dues to use a club through March 31, then that member will have 15 additional days of membership time (corresponding to the 15 day period from March 17 through March 31) after their membership would have otherwise expired.

"Second, in appreciation for their patience during this confusion, we offered that same group of members the option to (1) take additional free membership time at the end of their membership or (2) receive a complimentary three-month membership to give to a new member which is redeemable over the next 12 months. We began notifying members with details about these options, and explaining how these options may be selected, over this past weekend.

"Finally, we have a team of employees spread out over our clubs, who continue to field questions from members about cancellations, refunds and credit options. We are being flexible in our resolutions to meet the needs of the members.

"We encourage members to first check to see if their questions were resolved in the email we sent with the options explained here. If not, we have Frequently Asked Questions posted on our phone app and website. If they still have questions, they can call or email us but again, we ask for patience as we do our best to assist everyone. The “call back” option is recommended as we are returning messages as soon as we can over the course of the week."
RELATED STORIES
Global pandemic – research shows how the fitness sector is responding


Providing digital fitness content is emerging as a critical value driver for health club operators during the coronavirus (COVID-19) shutdown, according to a wide-ranging study on the effects of the pandemic on the global fitness industry.
24 Hour Fitness begins US-wide club reopening process


Health club chain 24 Hour Fitness expects nearly 50 per cent of its clubs to be reopened by the end of June – with the remaining clubs to be reopened by late July or early August 2020.
MORE NEWS
RSG opens flagship John Reed in Berlin, as its builds out its 'world city' portfolio
With the launch of its 49th John Reed, RSG Group is looking for more opportunities for its high- end brand in the US and Europe, but is pausing UK expansion.
PureGym's new results set it up for accelerating growth
PureGym saw revenues rise by 15 per cent in 2023, with the company announcing plans to develop 200 new clubs in the next three to four years.
Deloitte says European health club market hit an all-time high for revenues in 2023
Following three disrupted lockdown years, the European fitness market bounced back in 2023, according to Deloitte and EuropeActive’s hot off the press European Health & Fitness Market Report 2024.
Workers' Educational Association and CLUK team up to launch Carbon Literacy Course
Community Leisure UK is helping the public sector’s drive to net zero with the launch of a bespoke Carbon Literacy course.
Circadian Trust invests in wellness to support its NHS partnerships
Operator Circadian Trust has launched a five-year growth drive designed to support health and wellbeing across South Gloucestershire, UK. The initiative will see a £2.4m investment in its five Active Lifestyle Centres.
Treningshelse Holding snaps up another Norwegian fitness chain as it sets its sight on market leadership
Norwegian health club operator, Treningshelse Holding, which owns the Aktiv365 and Family Sports Club fitness chains, has acquired fellow Norwegian operator, Aktiv Trening.
+ More news   
 
FEATURED SUPPLIERS

Sibec EMEA to blend fitness with luxury at Fairmont Monte Carlo
Experience the pinnacle of fitness and luxury at the premier industry event, Sibec EMEA, set against the breathtaking backdrop of the Fairmont Monte Carlo this Autumn. [more...]

Study Active acquires Premier Global name and select branding assets
Study Active has legally acquired the name “Premier Global” and select Premier Global branding assets from Assessment Technologies Institute LLC, part of Ascend Learning in the US. [more...]
+ More featured suppliers  
COMPANY PROFILES
Physical

Physical is the UK’s go-to, one-stop shop for commercial grade fitness equipment and flooring, with [more...]
+ More profiles  
CATALOGUE GALLERY
+ More catalogues  

DIRECTORY
+ More directory  
DIARY

 

22-24 Apr 2024

UK Aufguss Championships

Galgorm Resort, York,
23-25 Apr 2024

ISPA Conference 2024

Phoenix Convention Center, Phoenix, United States
+ More diary  
 


ADVERTISE . CONTACT US

Leisure Media
Tel: +44 (0)1462 431385

©Cybertrek 2024

ABOUT LEISURE MEDIA
LEISURE MEDIA MAGAZINES
LEISURE MEDIA HANDBOOKS
LEISURE MEDIA WEBSITES
LEISURE MEDIA PRODUCT SEARCH
PRINT SUBSCRIPTIONS
FREE DIGITAL SUBSCRIPTIONS