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Massage Envy Membership Fees Class Action Lawsuit Overview:
- Who: Baerbel McKinney-Drobnis filed a class action lawsuit against Massage Envy Franchising, LLC.
- Why: Plaintiff alleges Massage Envy increased “locked-in” fees for monthly massages.
- Where: The class action lawsuit was filed in California federal court.
Massage Envy saw a $10 million class action settlement that offered Class Member vouchers tossed over unfair attorney fees.
A three-judge appellate panel determined the US District Court for the Northern District of California erred when finding that vouchers were not coupons under the Class Action Fairness Act, which affects the way a class counsel’s attorney fees are calculated, according to a recent opinion issued by the Ninth Circuit Court of Appeals.
The verified vouchers requested by 105,693 Class Members in the Massage Envy class action settlement amounted to less than $3 million in value—less than the $10 million floor of the deal, with the vouchers ranging in value from $36.28 to $180.68, the opinion states.
However, the judge calculated class counsel’s fees by adding the $10 million face value of the vouchers with the expected $450,000 in administrative costs to award 25 percent, or $2.6 million, to the attorneys.
“The appellate panel determined that the district court erred when it approved the settlement as ‘fair, reasonable and adequate’… [when determining] whether class counsel allowed the pursuit of their own interests to infect the settlement negotiations,” the opinion states.
The panel vacated the district court’s approval of the attorney fees award and instructed the lower court to use the voucher’s actual value at the time of redemption when determining fees.
“When a settlement provides non-cash relief and a reverter provision, a district court must be on the alert for an attorneys’ fee award that is artificially inflated in relation to the relief provided to the class,” the panel wrote. “The more undesirable or inflexible a voucher is in comparison to cash or to a gift card, the greater the risk that the settlement value may be overinflated.”
Massage Envy Class Action Claimed Co Hiked Monthly Membership Rates
The plaintiffs claimed that Massage Envy required customers to prepay for massages—forfeiting massages for which they have already paid if they cancelled.
The Massage Envy class action lawsuit alleged that customers were told that they could “lock in” membership rates, and that their monthly rate would not change. Additionally, they were told that they could cancel their memberships.
However, the company raised the membership rates. Customers claimed that in some cases, the rate hike was only 99 cents, but in other cases, the membership rates went up by around 30 percent. Additionally, customers claimed that the company intentionally maked it hard for customers to cancel memberships.
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The plaintiffs are represented by Trenton R. Kashima of Sommers Schwartz PC and Jeffrey R. Krinsk of Finkelstein & Krinsk LLP.
The Massage Envy Membership Rate Hike Class Action Lawsuit is Baerbel McKinney-Drobnis et al. v. Massage Envy Franchising LLC, case number 20-15539, in the U.S. Court of Appeals for the Ninth Circuit.
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105 thoughts on$10M Massage Envy Class Action Settlement Tossed for Fees
We have found we cannot get appointments, cancel, put our membership on hold, and work with management to make the membership work with Massage Envy. We have been members for years and they treat us like we do not matter. This is a rip off.
I’m having the same issues! Does anyone know how to get my money back from Massage Envy!
I too have been a member for many years, started at a rate of $39.00 a month. I just checked my checking account statement and as of today, it went up to $75.00 a month. As others have stated, I cannot get an appointment to use the backlog I have., and am told I can’t put my account on hold and use what I have at the same time. It is just crazy that they can get away with doing business in this manner. I would love to be able to use up what I have so that I can quit this game!
Please add me to this lawsuit. I am having same issue. When asked to speak to manager or someone to resolve my issue, they gave me a number that doesn’t even work .
WILL THERE BE ANOTHER ONE? IS IT TOO LATE TO JOIN CLASS ACTION SUIT? I HAVE BEEN A MEMBER SINCE BEFORE 2009. I CAN NOT POSSIBLE USE ALL MY PREPAIDS. IF I QUUIT I WILL LOSE THOUSANDS OF DOLLARS. REAL CATCH 22. HELP!
I’m here from Idaho. I have been a member for over 8 years. Started at 39.00 a month. Up to 65.00. Also I am unable to book massages at all as a member. They are running a scam. Saying I can’t book until March 2023 because they are booked out . My daughter called less than ten minutes after I tried to book an appointment on December 13,2022 and they made her an appointment for 12/15/2022! They are luring new customers in and wrangling them into a membership then you get tangled up since they won’t book members for months. It’s been going on for months. I need help ASAP. I have accumulated 47 credits for the two accounts I have. I can’t get out without losing over 3k. It’s unfair.
I’m in exactly the same boat, would love to see a class action lawsuit against this company. I have 30+ credits backlogged and can’t get an appointment, haven’t had a massage there in probably 10 months.
Please add me to the Class Action Lawsuit. I have over 80 unused massage credits and I am unable to schedule another appointment for 60 days. It is impossible to schedule on-line as they are booked out for months. My monthly payments continue to build and it is impossible to get in for a service every month. They have limited staff and rarely answer their phones. I was advised that there is a cancel list you can add your name to; however, you must reply within 10 seconds of receiving the text message to be awarded the canceled massage.
WILL THERE BE ANOTHER ONE? IS IT TOO LATE TO JOIN CLASS ACTION SUIT?
I live in Texas, and have >20 credits for massages. With COVID, I’ve been unable to visit for health reasons – I’m considered high risk from a medical standpoint.
I was using Freeze Plus plan to pay at first $10, now $20 to allow me to keep those credits and use them over time without accumulating additional massages I’m unlikely to use. I was able to sign up for 6 month stints. However, in November I’ve been informed by my local office in Flower Mound that their branch has exceeded the # of people on Freeze Plus, and that Corporate won’t allow me to sign up (this is a new policy). They are offering to put me on a wait list, with the alternative being that I cancel my membership (and they get to write off 20 x $70 = $1,400 in prepaid massage liability) or pay the full $75/month feed and continue to accumulate unused massages.
And, if I want to transfer massages to my spouse, I can only xfer 1 every six months (paying a $10 fee) and I can only transfer 1x month to anyone else (also paying $10 fee.)
Really, the solution is that they be required buy-back unused massage credits and if someone’s massage balance exceeds a reasonable amount, say (6) massages, they can only charge a maintenance fee (not the full $75).
I believe all class actions to date have been ineffective at curbing bad behavior – seems their corporate office is continually thinking up new ways to defraud their long-time customers by charging for services that they do not intend to deliver in the future.
Regarding charges and credits
I asked to put a pause on my account so I can work through back log of services. I was told if I pause future charges I’m not able to use those already paid for until I being to pay again. I can’t use up the services I’ve already paid for unless I continue to pay for more visits?
Hours have been cut down and it’s very hard to get appointments that work.
I’m in Virginia and myself & multiple family members are very upset about the exact same thing!!! Plus this is the 2nd or 3rd increase on the monthly fee they have done. I started with them when they opened up probably 15-20yrs ago. Never had any increase for all those years assumed that I was locked in at that contract price as long as I didht cancel or mess something on my end. Nope guess not. Corporate was no help & now this issue with charging $20 a month just to be able to still use your credits which I have 29 of & with their shortage of staff it would be impossible for me to get through them all before they disappear. So upsetting I want to file a lawsuit in Virginia against them.
Please include me in the lawsuit. I signed up with massage envy in 2011 when living in Utah. I now live in Washington and the massage envy in my area is now closed. I inquired about canceling and they will not give me back my money for all of my prepaid massages. Plus they increased the rate without my permission. Before they closed they never had appointments available for massage and would offer facials instead. When I explained I did not sign up for facials, they said you signed up for a service and that is what we are offering you. On my contract it states 60 minute massage not service.
Please include me in lawsuit. I have accumulated credits and can not get an appointment every time I call. Yesterday (11/15) called and the first time they could give me was mid-January (two months away!) Yet they keep taking monthly payments from my bank.
I was also told my rates were locked in now starting Jan. 2023 the rate goes up $30 a month. I have 15 unused hour massages paid for & like the other complaints I’m told if I discontinue paying I have 60 days to use or lose…Seriously!
Something needs to be done to reimburse us or let us use the paid ones within a 6 month period after closing them. So add me to the lawsuit list please.