LANSING, Mich. (WOOD) — A West Michigan-based gym accused of using poor business practices will pay $220,000 to the Michigan Attorney General’s Office.
Attorney General Dana Nessel announced Wednesday a consent judgment (PDF) was reached with Family Fitness.
As part of the judgment, $190,000 of the $220,000 to be made available to consumers affected by the company’s questionable business practices. The money must be paid over three years.
Officials say customers who have filed complaints against Family Fitness will receive information about the claims process in the next few months. They note it’s not too late to file complaints by visiting the Attorney General’s Office online.
The decision resolves a four-count complaint filed in September 2017 for alleged violations of the state’s Consumer Protection Act. The state launched an investigation after receiving hundreds of consumer complaints, which included claims the company misrepresented cost and collected excessive cancellation fees from its members. The AG office then filed a class-action lawsuit against the company.
As part of the judgment, Family Fitness can’t charge any cancellation fees on memberships or personal training agreements that resulted from a drawing or event prize. Cancellation fees on other memberships or personal training agreements cannot exceed $75.
Family Fitness has 12 locations in West Michigan, including Alpine, Grand Rapids, Grandville, Holland, Muskegon, North Muskegon, Norton Shores, Plainwell, Portage, Sparta, Standale and Wyoming.