Here we are on the last day of February 2021! Looking back, how was your month of February? Regardless of how it was, looking forward, there’s much happiness to come, one of which is your J.D. degree! Keep working hard and put in the effort and keep your eye on the prize. Today, I’m bringing before you a lawsuit that was filed by the Attorney General of Boston, Laura T. Healey, against Boston Sports Clubs gyms. Enjoy Reading!
Ms. Healey sued Boston Sports Clubs’ parent company, Town Sports International, for violating sections of state law governing health clubs and consumer protection, arguing that it failed to honor scores of member cancellations and violated terms of an earlier agreement with her office. Specifically, “members had the right under state law to cancel their contracts without penalty due to substantial changes in operations amid COVID-19 pandemic, but Boston Sports Clubs continued to charge monthly fees while gyms were closed and improperly sought cancelation fees, Healy alleges”.
Boston Sports Clubs had closed its gyms back in March in accordance with shutdown orders, but it “charged members a full monthly membership fee in April, even while closed”. While some customers tried to cancel their membership, Boston Sports Clubs said they had to pay a cancellation fee if they did. Due to the hindered freedom of the customers, Ms. Healey took action and in April, sent a letter demanding the Boston Sports Clubs locations to stop billing its members, to freeze all accounts at no cost, and allow cancellations with no fee.
The Defendant agreed to the changes but in July, when the gyms reopened with limited capacity, they unfroze all the accounts and started charging membership fees to all members and that too, without notification.
Thereafter in September, the Defendant filed for Chapter 11 bankruptcy. Then in October, Ms. Healey said that they reached an agreement with the Defendant where the Sports Clubs will refund its members and allow cancellations without penalties. However, unfortunately, Ms. Healey said that the company “has since refused to make any effort to live up to the terms of the agreement”.
Massachusetts Lawyers Weekly Vo. 49, No. 48
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