24 Hour Fitness Class Action Filed over Increased Rates

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A class action lawsuit alleges that 24 Hour Fitness USA Inc. lies when it enrolls members by promising them fixed annual renewal rates. The complaint claims that 24 Hour Fitness has been increasing rates of so-called lifetime members, many “by more than 100%.”

24 Hour Fitness runs a chain of over 400 athletic clubs across the country, and has the most members of any privately owned and operated fitness club chain in the county, according to the complaint.

The class action lawsuit asserts that in order to get new customers to sign-up and prepay for two or three year memberships, 24 Hour Fitness makes promises to “lifetime members” that their annual renewal rate would never increase.

The complaint asserts that this is a uniform practice across all 24 Hour Fitness clubs, and was used to increase revenue at the time. The complaint also cites former employees who state they were trained that the dues or annual rates would never increase, “hence ‘lifetime’.”

The complaint alleges that “without the promise of lifetime membership with a fixed, annual renewal rate, consumers otherwise had no incentive to prepay for two to three years of membership in advance.”

Plaintiff Russell Marchewka states that he purchased a lifetime membership from a 24 Hour Fitness in California in 2007. Marchewka allegedly paid $675 in advance for a three-year membership, and in exchange was promised that his annual rate would remain $69 per year. However, Marchewka contends that 24 Hour Fitness informed him by letter in 2015 that his annual rate was increasing to $119 per year.

The 24 Hour Fitness increased rate class action lawsuit asserts that Marchewka’s experience is not unique. The lawsuit cites numerous complaints from websites such as www.consumeraffairs.com and ripoffreport.com that show many consumers paid large up front fees because they were told their annual rate would never increase, until it did.

According to the class action complaint, 24 Hour Fitness points to “fine print buried in standardized member agreements that it claims purportedly allow it to raise the annual dues.” However, Marchewka says that he has never seen any contract from 24 Hour Fitness that he signed. Furthermore, the complaint argues that 24 Hour Fitness has committed an unfair and fraudulent business practice by breaking the promises made at the point of sale to its lifetime members.

Marchewka seeks to represent a Class of all persons “who purchased a prepaid membership in the states where 24 Hour Fitness operates fitness clubs (including California, Colorado, Florida, Hawaii, Kansas, Maryland, Missouri, Nebraska, New Jersey, Nevada, New York, Oklahoma, Oregon, Texas, Utah, Virginia, Washington) and whose fixed, annual renewal rate was increased.”

The class action seeks restitution for the increased rates, and to make 24 Hour Fitness honor its promise of fixed annual rates for its lifetime members.

The plaintiff is represented by Rosemary M. Rivas and Quentin A. Roberts of Finkelstein Thompson LLP, and Marc L. Godino of Glancy Prongay & Murray LLP.

The 24 Hour Fitness Increased Rate Class Action Lawsuit is Russell Marchewka v. 24 Hour Fitness USA Inc., Case No. 3:16-cv-02359, in the U.S. District Court for the Northern District of California.

UPDATE: January 2018, the 24 Hour Fitness prepaid membership class action settlement is now open. Click here to file a claim.