Zohran Mamdani is now cracking down on gym memberships that have 'subscription traps'
The Mayor of New York City (NYC) Zohran Kwame Mamdani, and the Department of Consumer and Worker Protection (DCWP) are cracking down on citywide gym "subscription traps" that make it difficult for residents to cancel a membership. To his efforts to curb "hard-to-cancel" memberships, deceptive advertising, and borderline scam schemes, the mayor has sent out warning notices to 187 big-name gyms and health clubs in the city, demanding that they comply with the city's consumer law. As per the official release, the big names include PureGym, Planet Fitness, Equinox, and more.
The mayor launched the compliance blitz on Thursday, issuing warning notices urging gyms and health clubs to comply with state law governing membership cancellations and adhere to the city’s Consumer Protection law, which prohibits deceptive advertising. In it, he cited practices like bait-and-switch pricing, which is used to make cancellations intentionally difficult for members.
The notice follows an executive order from Zohran Mamdani directing the Department of Consumer and Worker Protection (DCWP) to lead a citywide crackdown on “hidden junk fees” and “subscription traps.” “If a company makes it easy to sign up but nearly impossible to walk away, we will enforce the law and protect your time and your money," the mayor said, before adding, “New Yorkers shouldn’t need a personal trainer to cancel a gym membership."
Commonly, most gyms require members to navigate through complex website tabs or procedures to cancel their membership. The release cited hurdles like unexpected fees and administrative requirements that delay cancellation requests. Furthermore, the mayor added that gyms also offer membership trials that appear free at first, but eventually turn out to be bait-and-switch schemes that force New Yorkers to pay undisclosed fees.
The release stated the DCWP received numerous complaints last year from consumers experiencing difficulties in cancelling their memberships. Thus, the lack of transparency led to the department carrying out the blitz compliance campaign. The mayor's executive order now mandates the DCWP to “monitor, investigate, and enforce violations related to subscription tricks and traps.” This will include all intentional practices that make it harder for members to cancel subscriptions.
In a review conducted by amNewYork, Planet Fitness offered the most readily accessible information on cancellation, but members still needed to navigate multiple tabs to find it. While the website offered multiple ways to cancel the membership, it added that the services may vary depending on the location. However, a spokesperson for Planet Fitness told the publication that their policies were already in accordance with the law. “At Planet Fitness, we are proud of our mission to provide an exceptional member experience, and we believe our policies are already in accordance with applicable local and state requirements,” the statement said. Meanwhile, residents of New York are applauding the mayor's move, as they complained they had to either exercise independently or visit smaller community gyms to avoid such subscription traps and the hassle of managing memberships.
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