Payback is coming for New Yorkers who had trouble canceling their memberships with the high-end gym Equinox Group. New York Attorney General Letitia James recently announced a settlement with Equinox Group, LLC, to the tune of $600,000.
According to James, the Office of the Attorney General found that Equinox failed to clearly disclose its subscription terms, provide consumers with the required subscription acknowledgment under state law, and offer cost-effective and easy-to-use online cancellation mechanisms.
As part of its Settlement, Equinox Group, the parent company of Soul Cycle, must pay over half a million dollars in penalties, change its subscription practices, and offer refunds to subscribers who attempted to cancel their memberships but were unable to do so.
“New Yorkers should be able to cancel a membership they no longer use or want without breaking a sweat,” said James in a statement. “The Equinox Group made it challenging for customers to end their membership, costing them time and money. As a result of my office’s Settlement, New Yorkers can now cancel their membership with Equinox, SoulCycle, or any of Equinox Group’s brands much faster.”
What The Settlement Entails Between New York and Gym Giant
New York State law requires that subscription terms be clearly disclosed to customers, including the minimum term, informing consumers of whether the subscription is renewed, and the cancellation policy. Businesses must also obtain affirmative consent for automatic renewals, provide a post-purchase acknowledgment, and offer a cost-effective, timely, and easy-to-use cancellation process.
The OAG found that Equinox failed to provide consumers with clear subscription terms, and the terms appeared in fine print disclosures, among a few other grievances.
“Equinox’s cancellation process was complex, difficult, and time-consuming,” the OAG says in a statement.
The Settlement requires Equinox Group to pay $600,000 in penalties. The group is required to provide refunds of up to $250 to eligible subscribers who filed complaints with the Equinox Group, the Federal Trade Commission, the Better Business Bureau, or the Office of the Attorney General of the State of New York between Feb. 9, 2021, and Dec. 31, 2024.
Additionally, Equinox Group is required to enhance its disclosures and provide customers with an acknowledgment that includes cancellation information.
