The state of Maryland has filed administrative charges against a suburban Baltimore health club and its owner, claiming they arbitrarily discontinued services that had previously been provided, made false and misleading statements to consumers in regard to their cancellation rights, offered and charged improper fees, attempted to collect debts not owed and failed to post required security.
“Health clubs cannot stop offering the services they've promised and expect their members to continue paying for them,” Maryland Attorney General Douglas Gansler said. “In Maryland, health clubs cannot deceive consumers about their cancellation rights.”
The complaint alleges that in 2010, GRS Fitness, LLC, of Essex, Md., entered into an agreement with a second business, Health Tek Creations, LLC, to take over a health club facility located at 8502 Kelso Drive in Essex. GRS Fitness and Caplan changed the gym's name from Energy Fitness Center to Spunk Fitness Center and, in doing so, removed free weights and heavy lifting equipment from the facility.
Despite the significant changes, GRS Fitness, LLC and Caplan refused to allow members to cancel their membership.
False and misleading statements
Gansler says GRS Fitness, LLC and Caplan also made false and misleading statements about members' cancellation rights and continued to charge the higher monthly membership fee for Energy Fitness Center services that were no longer provided. As Spunk Fitness, GRS Fitness, LLC and Caplan advertise membership rates as low as $9.99, a significant difference from the rate previously charged to Energy Fitness Center members.
The charges also allege that, in regard to registration, GRS Fitness, LLC and Caplan, have failed to post security in an appropriate form.
The state is seeking a cease and desist order to prevent the health club from selling any health club services until they comply with the registration process, cease and desist from improper billing practices, and pay full restitution of all payments collected in violation of the Consumer Protection Act and Health Club Services law.
