Attorney General Sues Five Health Clubs for Violating State Law
Alleged Violations Include Failure to Maintain Bond
and Unconscionable Commercial Practices

NEWARK - The Attorney General’s Office and the Division of Consumer Affairs have filed lawsuits against five health clubs, alleging that the club operators are failing to notify customers of their right to cancel contracts and obtain refunds as legally required, Attorney General Zulima V. Farber and Consumer Affairs Director Kimberly Ricketts announced.

“Businesses that operate in New Jersey must adhere to state law or face the consequences of their action - or inaction,” Attorney General Farber said. “We’ve filed suit because we want all required consumer protections to be in place.”

The health clubs, operated under the Royal Fitness, Pure Focus Sports Club, Planet Gym, Champion Fitness Center, and Achieve Fitness names, are alleged to have committed multiple violations of New Jersey’s Consumer Fraud Act, the Health Club Services Provisions of the Consumer Fraud Act, the Health Club Services Regulations and the General Advertising Regulations.

Among other things, the state alleges that the health clubs failed to post the necessary bond and failed to include provisions in health club services contracts that notified consumers of their rights. The state filed five separate complaints in State Superior Court in Essex County.

“Health clubs are supposed to be places for New Jerseyans to get work outs, not places for them to get worked over,” Director Ricketts said. “These suits should put clubs across the state on notice that they must do the right thing by consumers and abide by the law.”

The defendants named in the lawsuits are:

The complaints allege that the health clubs offered memberships in excess of three months but failed to maintain a bond, letter or credit or other security for the deposits collected from members, as required by the Health Club Services Provisions of the Consumer Fraud Act (CFA). The complaints also allege that by offering memberships longer than three months when not authorized to do so, the defendants violated the CFA and the General Advertising Regulations by engaging in unconscionable commercial practices and making false promises or misrepresentations. Several complaints further allege that membership contracts failed to contain specific disclosures as to cancellation, refund and total payment obligation.

Each complaint seeks restitution for any affected consumer and seeks the maximum statutory civil penalties for each violation of the CFA, which is up to $10,000 for the first violation and up to $20,000 for each subsequent violation.

Deputy Attorney General Amye R. Steinberg is representing the State in these lawsuits.

“In light of these cases, and cases like these, we encourage consumers to do their homework before signing a contract or handing over money,” Director Ricketts concluded. “Please contact us at 800-242-5846 to ask whether a health club is registered with Consumer Affairs and if we’ve taken previous actions against a club or its operators.”