Ashley Milano  |  April 7, 2016

Category: Consumer News

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24-hour-fitness-logo24 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

  1. Marcia Larson says:

    Same happened with me. Back in Aug of 2008, I purchased a larger membership package and was verbally told it would be $99 annually for life and then they doubled it with no notice. If i can join this law suit then count me in.

  2. Dan Andrews says:

    Hi – how can someone join this lawsuit? My wife purchased a membership for about $750 maybe 10+ years ago. For the last few years she hasn’t been able to go because of having kids and her work situation. She went to try to renew it a month ago and they said the membership was terminated. My wife did actually pay the renewal with her Chase bill pay, so when we checked into it they said the check was returned by 24 hr fitness with no reason given. My wife called 24 hr fitness and they said they sent a warning notice of cancellation but we never got anything in the mail or any e-mail regarding this. Because it’s an annual membership and hasn’t been going lately, she was never aware there was a problem with the renewal until she found out recently. Is there anything that can be done? I understand they are trying to phase out non-lucrative contracts, but the fact that they don’t make much money off of them isn’t our problem. My wife purchased it fairly with the expectation that it would be permanent, as it was sold to her. It seems really unethical and shady business practices for sure. By cancelling it because it’s not bringing in the revenue for them, so they really think she would sign up under a new contract under the current rates??? The ill-will it has created will do far more damage to their bottom line with her testimony on the bad experience to her friends and acquaintances. I would NEVER recommend that place to anyone, and as much as it would hurt, would prefer to take my business elsewhere at the current rates.

  3. Tom says:

    My annual membership went from $29 a year to $129 a year. What sucks is the super sport I usually go to doesn’t have a pool or ball court were I’ve seem an active/sport club that do.

  4. CathyGasper says:

    How do we join this lawsuit?

    1. Phan says:

      I would like to know how to join this lawsuit as well! So far I am not finding any information on if we can join this lawsuit or not.

  5. Olive Curnco Hernandez says:

    I received a letter regarding an increase from $39.99 to $90.00 a year starting January of this year. Thank you

  6. Joe says:

    Big Red, it doesn’t matter what the contract states. The point is that the sale reps, sold them on a good that was verbally agreed on and now has changed. With enough people stating that it is fact that they said one thing and did another is enough for this lawsuit.

  7. Wayne says:

    Mine jumped from $29 to $79. Thank you for this!

  8. Big Red says:

    I didn’t read the contract but hey I can sue, right?! These people are pissed because 24 Hour Fitness exercised a clause in the contract, just because the clause was never exercised before now. Cry me a river; read the damn contract next time and quit whining!

  9. Xer says:

    I pay $20 per year and my rate didn’t go up.

    1. Phan says:

      The rate increases are being picked at random it seems, mines went up from $50 to $100 while my wife’s didn’t. We signed up the same time so I don’t know how they are picking and choosing! But my feeling is that eventually you will see your rates go up as well!

  10. Chris endecott says:

    I had the same deal and mind jumped from $31 per year to $89 per year

    1. Karen says:

      Mine did as well. Same thing. My son has the same membership as me but his stayed at $31. He doesn’t go to the gym very much. I go 6 days a week. This increase stared with me last year. When I called and asked why it went up so much they said it was a maintenance fee. I just got my bills in the mail for me and my son and his is still $31 and mine is $89. So much for a set yearly fee for life.

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