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24 Hour Fitness has been hit with a proposed class action lawsuit claiming the fitness chain fraudulently enticed customers into purchasing supposed prepaid “lifetime memberships” in violation of various state contract and trade practices laws.
Plaintiffs Kevin O’Shea, Mark Vitcov, and Rod Morris filed the class action lawsuit on April 2 in California saying that they were lured into purchasing lifelong memberships by sales representatives who verbally represented the annual renewal rate would be locked in for a lifetime.
Specifically, O’Shea purchased membership with a lump-sum pre-payment of $700 in January 2008, under the guise that his annual renewal fee rate would be locked in at $49 which he paid up until January 2016 when the renewal fee was raised to $124.
Vitcov and Morris also allege similar deceptive experiences with the fitness chain, including the oral sales pitches and promises that 24 Hour Fitness would cap the Annual Renewal Fee at a lifetime rate.
“First, after convincing consumers to purchase a lifelong membership, 24 Hour Fitness’s Membership Counselors were instructed to tell potential members that they did not need to read the fine print on the written membership contracts because they were for ‘lifetime membership’ – as was verbally represented,” the lawsuit states.
According to the class action, for two decades, 24 Hour Fitness sales representatives have used “a uniform set of marketing tactics and aggressive sales pitches to induce consumers into purchasing ‘lifetime memberships’ to its gym, where they prepaid three years worth of membership fees and, in exchange, only had to pay nominal annual renewal fees for each year thereafter.” The lawsuit claims that these annual renewal fees were supposed to remain constant for the remainder of the “lifetime” contract.
Now under new ownership, the gym announced that they would no longer be honoring the Lifetime Fee Guarantees and began alerting members that their fees would increase in 2016, in most cases either double or triple their previous rates. This didn’t sit well with members, as many consumers took to social media and internet, posting complaints on 24 Hour Fitness’ alleged renege on its promise.
However, 24 Hour Fitness fired back, pointing to the fine print located on membership contract and argued that the gym is permitted to increase all subsequent annual renewal rates on prepaid memberships as it wishes, regardless of the uniform promises made by their membership counselors.
The plaintiffs are seeking Class certification on behalf of themselves and similarly situated 24 Hour Fitness members in the United States, with three separate subclasses for residents of California, Oregon, and Texas. They are requesting reformation of their written contracts to reflect a lifetime membership with its attended guarantees and restitution, statutory, and punitive damages.
The plaintiffs are represented by Todd M. Logan of Edelson PC.
The 24 Hour Fitness Lifetime Membership Fees Class Action Lawsuit is O’Shea, et al. v. 24 Hour Fitness USA Inc., Case No. 3:16-cv-1668 in the U.S. District Court for the Northern District of California, San Francisco Division.
UPDATE: January 2018, the 24 Hour Fitness prepaid membership class action settlement is now open. Click here to file a claim.
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46 thoughts on24 Hour Fitness Class Action Filed over Renewal Fees
24 hr fitness is closing in Springfield nj and closed 2 yrs ago in Bricktown nj
How can I sue 24 hr fitness to fulfill my lifetime membership?
What lawyer could help me
You can contact class counsel with your questions. Counsel is listed at the bottom of the article and can be Googled for contact information.
24 Hour has agreed to settle for $1.3 million. Affected members will get a partial refund of their overpayments and revert back to their original dues. Judge will have to approve this settlement.
Do you know where I go to file a claim form for this settlement?
On December 8th, the judge will decide if this settlement is fair. If so, 24 Hour will begin to send claim forms to affected members.
Hi Johnny, thank you for keeping us up to date. I have a question. At this time they do not let me use the “sport clubs” will this change if the settlement goes through?
I feel it’s another way of forcing you out of the lifetime membership.
Thanks again
Aaron
See details of the settlement at:
https://topclassactions.com/lawsuit-settlements/lawsuit-news/825177-24-hour-fitness-reaches-1-5m-renewal-fee-class-action-settlement/
My membership increased $50.00 and I had refused to pay. I joined another gym. Will I still be consider in the Class Action suit?
I paid over $6K through the year, then received a set annual lifetime membership fee. Eventually it went up $50.00 more. My membership includes all access except Super Sport or Ultra. All new facilities are SUPER SPORT, so I can’t use my membership (unless I pay more each month), meanwhile the “old” aren’t cared for and in pretty bad shape. The outside of the newest buildings (Fountain Valley, CA / Brookhurst & Santa Ana, CA / Edinger St) only says 24 HOUR FITNESS (no mention of Super Sport). I think that is wrong of 24 hr. fitness. I passed up my Bally lifetime membership years ago for 24 hr. fitness…wish I had done the reverse. Bally’s now honors L.A. fitness and NEVER an increase in membership (my brother chose them).
I live in California and signed one of these lifetime memberships in 2008 (approximately). I never received notification for offering an option to joining this class.action. So, what does this mean for me?
You will automatically be part of the lawsuit if 24 Hour loses. You will be notified by 24 Hour Fitness because they have records of who were members during the disputed period.
The case is still moving through the courts and has not yet reached a settlement. Notice has not yet been sent out, and claim forms are usually not made available to consumers until after a court approved settlement is reached. We recommend you sign up for a free account at TopClassActions.com and follow the case. We will update the article with any major case developments or settlement news! Setting up a free account with Top Class Actions will allow you to receive instant updates on ANY article that you ‘Follow’ on our website. A link to creating an account may be found here: https://topclassactions.com/signup/. You can then ‘Follow’ the article above, and get notified immediately when we post updates!
Don’t know why but the Motion to Dismiss is no longer on the court calendar. Perhaps somebody knows why.
Any ideas where I can get the latest status on this Class action Lawsuit?
The case is still moving through the courts and has not yet reached a settlement. There is a case management conference scheduled for 10/27/17. We recommend you sign up for a free account at TopClassActions.com and follow the case. We will update the article with any major case developments or settlement news! Setting up a free account with Top Class Actions will allow you to receive instant updates on ANY article that you ‘Follow’ on our website. A link to creating an account may be found here: https://topclassactions.com/signup/. You can then ‘Follow’ the article above, and get notified immediately when we post updates!
How can i jum in on this law suit?
Same question here.
Me too
Getting the same thing with my monthly membership. 5% every year like clock work for past 5 years. Thing is not everyone’s dues increase so that is discrimination but unless someone else wants to help spin up another class action they will get away with it. I have inside knowledge of their business, they blow tons of money on failed software systems rather then buy a ERP from a established vendor like most business whose focus isn’t technology, the company has been terribly managed for years. Under new management nothing changed.
They have not increased my dues but locked me out of the gym that replaced the one I signed up at because it was a higher level. When I signed the lifetime contract they told me that I could use all of their gyms and specifically the new one they were putting in. Once the new one was built I was told I needed to pay more to use the gym because they offered some other services like towels and so forth (services I didn’t want or need anyways.) I pushed for them to honor their agreement but they wouldn’t budge. Instead I had to drive to a gym that was farther away and not the new higher level of gym. However, they have not raised my annual renewal rates but I feel that is unfair they have raised rates on others such as yourself and agree that such practices constitute discrimination. Don’t know how I would go about a class action suit with you. Reply here if that helps and I’ll try to figure it out.
15+ Years ago I purchased a lifetime membership for big bucks. Then the $49/year membership fee followed. Upon turning 65 my health Ins. provided me with SilverSneakers and my account was frozen and the health Ins. paid my membership fees. I liked this, however, 24Hr fitness provided me a letter saying that my membership was on freeze until I notify them of any changes. I never notified them and they terminated my lifetime membership and want me to pay them $ to reactivate my membership. They said that they sent me and email and letter telling me that I have to annually renew my frozen membership requesting it to be extended in that state or they will terminate the membership. I never got an email or letter stating such. I read them the letter stating that my frozen membership will remain as such until I request a change. They give me the same line of BS stating that they are not responsible for the email process or the US mail service. I want to file a suit, I do I jump on a class action suit?