After a rise in consumer complaints against health clubs and fitness centers in 2017, Michigan Attorney General Bill Schuette is reminding Michigan consumers looking to join a gym this New Year to shop smart. The Department of Attorney General has a consumer alert to help residents make educated choices about fitness center and health club memberships.
In 2017, the Attorney General's Consumer Protection Division received 595 complaints from Michigan consumers against health clubs and fitness centers. This is significant increase over the 84 complaints received in 2016.
More than half the complaints were made against Family Fitness, a West Michigan based chain. The remaining complaints involved discrepancies between what consumers say they were told by sales personnel and what the signed contract actually guaranteed. In particular, consumers reported the written cancellation procedure frequently differed from what they were told by the salesperson. Consumers also complained about high-pressure sales tactics and feeling rushed to sign contracts.
Three hundred and forty seven of the complaints received in 2017 were filed against one West Michigan based fitness chain called Family Fitness. The Department of Attorney General took legal action against the chain in July 2017, filing a Cease and Desist. In September, Schuette filed a class action lawsuit against the chain. Those legal proceedings are ongoing.
In the consumer alert, "Lose Weight, Not Money," Schuette advises consumers to follow certain guidelines to make smart choices when joining a health club or fitness center. Below are a few tips mentioned in the alert:
1. Cancellation and Refunds. Make sure you understand the cancellation and refund policies before signing the contract. What happens if your move, are injured, or get a serious illness? Also, what happens if the fitness center goes out of business? A "lifetime" membership is really only good for the lifetime of the business, not your lifetime.
2. Read any contract carefully before signing. Don't be rushed prior to signing any contract; take your time and make sure you understand all of the contract terms before signing. Ask for an unsigned contract to take home and review.
3. After you sign your contract, make sure you keep a copy. Some companies may ask you to pay additional fees on top of what you have already paid or have agreed to pay for your membership. If you are asked to pay additional fees, make sure that is allowed under your contract. You may be asked to pay fees that are not mandatory for you to keep your membership in good standing. This should be made clear to you by the company; if it is not clear, call the company and ask about the fee before you pay
4. Exercise caution. If the club is advertising an unrealistically low price, be cautious.
5. Closing or changing ownership. Immediately reference the Attorney General's Business Sudden Closure consumer alert. If the business changes ownership but remains open, ask the new owner for a contract containing the same terms as the one you have. Unless the new owner is honoring your old contract, you can't be required to join the new club. If you cannot get written confirmation that your old contract will be honored and the new business refuses to provide a satisfactory resolution, file a complaint with the Consumer Protection Division.
Take the time to review all contracts carefully, prior to signing, to confirm that all promises made by the salesperson are written in the contract. Also, make sure to understand the contractual obligations. Many consumers mistakenly believe that if they are no longer using the fitness center, they can discontinue payments on the contract.
Schuette's consumer alert, "Lose Weight, Not Money," is available online at www.michigan.gov/ag. Attorney General Schuette encourages residents with questions or concerns to contact the attorney general's Consumer Protection Division toll-free by calling 877-765-8388.
Published: Tue, Jan 09, 2018
