SANTA CRUZ COUNTY — Santa Cruz County District Attorney Jeffrey Rosell announced Thursday that Fitness Evolution has agreed to a settlement paying approximately $1.8 million in penalties, restitution and costs.
According to the DA’s Office, the company “engaged in deceptive membership promotions and other illegal business practices” to finance its expansion of gyms over the last four years.
The judgment, filed by a joint District Attorney task force in Santa Cruz County Superior Court, requires Fitness Evolution to provide thousands of its past and current members with the right to cancel their contracts with the gyms and forgive past due consumer collections valued at approximately $11 million.
In addition, Fitness Evolution agreed to be bound by a five-year injunction to prevent future unfair practices.
The DA’s Office, joined by the Offices of Monterey, Santa Clara, San Joaquin, Fresno, Stanislaus, Merced and Tulare Counties, opened a joint task force investigation in 2015 in response to consumer complaints about membership promotions, unauthorized billings, cancellation practices and collection actions. A civil action was filed in Santa Cruz County in July 2016 and has settled with a judgment against several Fitness Evolution entities operating the gyms in California. The civil complaint alleges that Fitness Evolution violated California’s Health Studio Act, False Advertising Law and other consumer protection laws, the DA’s Office said.
For consumers affected by the alleged illegal practices between June 2011 and September 2015, Fitness Evolution agreed to make different forms of restitution, including: Paying $500,000 in restitution to members who received unauthorized charges, and forgiving the debts of members on over $11 million in collections, among other charges.
This settlement follows on the heels of a previous gym settlement with similar terms against In Shape Health Clubs, the DA’s Office said.
