Lifetime Memberships to 24 Hour Fitness
November 2017: Plaintiffs moved for preliminary approval of a proposed settlement agreement that would resolve this action and another similar state court case, Shah v. 24 Hour Fitness, Inc.
According to the proposed settlement terms, class members who submit a valid declaration, are current or former gym members, and already paid increased annual renewal fees may receive refunds for the amount of the increases in renewal rates. The gym also agreed to allow them to renew their membership for the Initial Renewal Amount in the future, as long as they pay the fees and are in good standing.
In addition, the gym agreed to automatically provide the following relief to class members who do not submit a valid declaration. The gym agreed:
- not to increase annual renewal fees by more than $45 or $90 (depending on the type of gym membership) for current gym members who have not been notified of an increase in their annual renewal fee and not to increase the amount of their annual renewal fee for two renewal periods.
- to allow current members who have been notified of an increase in their annual fees to renew their membership at a reduced rate (i.e., the Initial Annual Renewal Amount plus 90% of the increase) for three renewal periods.
- to allow gym members who terminated their membership after being notified of an increase in their annual renewal fees to reinstate their membership by sending the gym a reinstatement payment (i.e., the Initial Annual Renewal Amount plus 90% of the increase plus taxes) and not to increase the amount of their annual renewal fees for two renewal periods.
July 2016: A Consolidated Class Action Complaint was filed.
June 2016: These two cases were consolidated. (In re 24 Hour Fitness Prepaid Memberships Litigation, Case No. 16-cv-1668, N. D. CA.)
April 2016: Two class-action lawsuits were filed against 24 Hour Fitness for allegedly conducting a bait and switch scheme to induce consumers to sign up for lifetime memberships. According to the complaint, 24 Hour Fitness represented that lifetime members paid only annual renewal fees and that the fees remained the same for the rest of the member’s life without adequately disclosing that the gym actually retains the ability to increase the annual renewal fees for prepaid members. To read the complaints, click on the case information below.
- Marchewka et al v. 24 Hour Fitness USA, Inc., Case No. 16-cv-2359, N. D. CA.
- O’Shea et al v. 24 Hour Fitness USA, Inc., Case No. 16-cv-1668, N. D. CA.
For more information about other class-action lawsuits against gyms and TINA.org’s coverage of them, click here.