/https://specials-images.forbesimg.com/imageserve/5f74cf6d8d527404d29d44bb/0x0.jpg "N.Y. Attorney General Sues New York Sports Club And Lucille Roberts Owner For Charging ‘Illegal Dues’ During Covid-19 Pandemic")
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Topline
New York Attorney General Letitia James filed a lawsuit Wednesday against the parent company of New York Sports Clubs and Lucille Roberts for “unlawfully” charging monthly dues to members and refusing to honor cancellation requests despite the fact that New York gyms were ordered to close because of the coronavirus pandemic.
New York ordered all health clubs and gyms to temporarily close on March 16 to help prevent the … [+]
Key Facts
The lawsuit charges Town Sports International with violating multiple New York state laws by charging consumers membership dues for services not offered, failing to issue credits, imposing “unlawful” fees and advance notice requirements on cancellation requests, misleading consumers about their rights to cancel their memberships and refusing to allow cancellations.
James seeks a temporary restraining order to “immediately block” Town Sports International from continuing to charge dues or fines to New York members who sent cancellation requests and whose primary gym remains closed and asks the court to order the company to provide restitution to members.
James said in a statement that by failing to cancel fees, Town Sports International treated members like guests at Hotel California: “you can check out any time you like, but you can never leave.”
The lawsuit says James sent Town Sports International a letter in early July saying she would take action to protect customers from paying dues and Town Sports International implemented a freeze on membership fees and dues on April 8 and told customers they would provide credits in the future.
Town Sports International reversed course around September 1 and “unlawfully” resumed charging consumers, never gave them the credits and charged some consumers who were members of clubs that haven’t opend yet, according to the filing.
Town Sports International owns and manages nearly 100 New York Sports Clubs and Lucille Roberts locations in New York State; Town Sports International did not immediately respond to Forbes request to comment.
Crucial Quote
“Since the COVID-19 pandemic began, New York Sports Clubs and Lucille Roberts have done everything possible to flout their obligations and take advantage of members,” James said. “Today’s suit aims to end TSI’s illegal efforts to run its members ragged, simply to spot its bottom line.”
Further Reading
Former Employees Say New York Sports Club Has Mishandled Customer Memberships For Years (Forbes)
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