Ashley Milano  |  April 20, 2016

Category: Consumer News

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massage envy class actionOnce again, Massage Envy faces a proposed class action lawsuit filed by disgruntled consumers who allege the company’s business practices are unfair and deceptive because it refuses to honor or refund prepaid, unused massages for customers.

The class action lawsuit brings claims of breach of contract, violation of the implied covenant of good faith and fair dealing, violation of California business and professions codes and declaratory relief.

Massage Envy is a membership-based franchise with over 700 clinics nationwide, of which 132 are based in California. Members sign-up to receive one fifty-minute massage per month for a monthly fee of approximately $60. All pre-paid massages a member has paid for that month and is unable to use accrue for the member to redeem later at a convenient time.

However, the lawsuit alleges that Massage Envy has inserted deceptive provisions into its contract that requires members to continue purchasing additional monthly massages as a precondition to redeeming the previously purchased unused massages. If a member cancels or ceases payment for the monthly purchases of additional massages when those charges become due, all of the unused pre-paid massages that have not been redeemed are forfeited.

Lead plaintiff Donna Zizian claims this forfeiture of prepaid massages breaches the uniform provision of Massage Envy’s Membership Agreement that provides “If you have Paid in Full for your membership services, you will be refunded the unused portion of your membership dues for any actual services you have not yet received.”

Zizian alleges that by failing to allow members to redeem the massages, or refund the cost of the massages, constitutes a breach of contract and breach of implied covenant of good faith and fair dealing, along with California’s Unfair Competition Law.

According to Zizian, she has been a member of Massage Envy since 2008 when she signed a standardized contract with Massage Envy with an initial term of 12 months, paying $59 for a monthly massage. Her contract held an automatic renewal clause that continues on a month-to-month basis until cancelled. Zizian claims she has at least 40 prepaid, unused massages and has kept her account current in the hopes she would eventually be able to redeem her unused massages.

However, Zizian alleges that by failing to provide refunds for unredeemed prepaid “paid in full” membership services Massage Envy unjustly increases revenue without having to provide massage services.

This is not the first time Massage Envy has faced legal action over its prepaid massage membership practices. In April 2014, more than 130,000 customers filed a class action complaint alleging violations of the California Unfair Competition Law. The certified Class claimed that the expiration of monthly 50-minute member massages that members did not use prior to membership cancellation, non-renewal, or termination for non-payment constituted an unlawful business practice and breached the membership agreement.

Massage Envy agreed to settle that California class action lawsuit in August 2014 by reinstating former members’ unused massages, extending the redemption period for current members, and injunctive relief.

Zizian is seeking to represent a Class of consumers who are current members of Massage Envy in California and paid a monthly membership fee.

She is seeking monetary damages, restitution, and an injunction prohibiting Massage Envy’s forfeiture of massages, and other equitable relief including reinstatement of the Class Members’ prepaid massages.

The plaintiffs are represented by Brett Weaver and Frank Johnson of Johnson & Weaver, LLP.

The Massage Envy Membership Class Action Lawsuit is Zizian v. Massage Envy Franchising LLC, Case No. 3:16-cv-0783-WQH-JLB in the U.S. District Court for the Southern District of California.

UPDATE: A class action settlement agreement has been reached! Instructions for how to file a claim can be found here.

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8 thoughts onMassage Envy Class Action Lawsuit Targets Prepaid Massages

  1. Debbie Judd says:

    I have run into a problem with Massage Envy as well. During Covid our ME in Fredericksburg, VA was closed and since I have Asthma, did not feel comfortable going back until I was fully vaccinated. Once both my husband and I started tying to make appointments we were told it would be anywhere from 2-4 months before they could get us scheduled. I finally made an appointment only to have it canceled. They were to call me back to reschedule but of course, I never got a call. Again I called to get an appointment and it was scheduled for a month and a half out. I took that appointment and scheduled another. The therapist I got was mediocre and between the poor service and lack of truly experienced therapists, I called to cancel. They did cancel and refunded me for 4 prepaids and extended my prepaids for 12 months which was reasonable but when I began experiencing the problems with scheduling again, I realized I would not be able to use them up in the timeframe allowed. The manager I initially spoke with when I canceled said there was a form I could fill out if I wanted a full refund but at the time, I was happy to try to use the prepaids. When they can’t get you in with a massage therapist they try to get you to take an appointment with a stretch therapist which I do not want. After resheduling because they had to cancel and showing up for my appointment and they did not have me on the schedule, I called back to get the form to request a full refund. I was told I could not get one. I have filed with the BBB but would like to be a member of any class action lawsuit against ME as I think their business practices are atrocious and that they are holding onto money for services they can’t provide.

  2. Natalia B says:

    Contacting in regards to the outcome of the Zizian vs massage envy settlement. No one has gotten back with me on the matter. Does anyone know of any findings? Thanks.

  3. Kenisha says:

    How do I find out about the massages I should be getting with this settlement? I received a message to choose which Massage Envy I wanted to go to, but never got a confirmation for when I can use them.

  4. Patti Onjian says:

    I have 8 massages accrued at Massage Envy in Verona NJ and wanted to cancel but they told me that if I did not use them within 60 days then I would lose them. When I mentioned the lawsuit they said that it only pertained to members who live CA and already canceled their memberships and that I had to continue my membership to get my 8 massages. Is this true? I don’t really use them right now and since the price went up I can get them elsewhere cheaper but I don’t want to lose the ones I already paid for and there is no way I can use 8 in 60 days.

  5. Top Class Actions says:

    UPDATE: A class action settlement agreement has been reached! Instructions for how to file a claim can be found here.

  6. Denis Gochanour says:

    I signed up for a year, used 2 services and could no longer use there services because I hade to move out of there area. I asked to be terminated, but they continued to charge my visa. ANot only did I have unused massages on the books but they continued to charge me.

  7. Joan Reddick says:

    I have not hear from Envy yet

  8. Jeanette Watkins says:

    How may I become plaintiff in the Massage Envy class. I have paid for two years of massages, however due to my husbands illnesses( 100% disabled veteran) I have not been able to take advantage of the unused massages. When I called to check on my paid massages, I was told that I only had six months of services.

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