
FTC Sues LA Fitness for Making Consumers Sweat Gym Memberships
Complaint alleges gym chain puts up roadblocks to cancellation.
November 2013: A federal judge granted final approval of a settlement of this action. According to the settlement terms, class members may receive a cash refund (ranging from $40 to $100) or any one Hydroxatone product. In addition, the company agreed to make changes to its marketing including, for example, no longer using the word “free” when customers actually need to return the product to avoid being billed, and to clearly disclose the terms of its Risk Free Trial and Auto-Shipment Program to consumers.
August 2011: A class-action lawsuit was filed against Hydroxatone (and amended in February 2013) for allegedly deceptively offering “risk-free” trials of skin care products when, in reality, the company makes it difficult for customers to return products and cancel memberships. (Sabol et al. v. Hydroxatone LLC and Atlantic Coast Media Group LLC, Case No. 11-cv-4586, D. NJ).
Complaint alleges gym chain puts up roadblocks to cancellation.
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