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Health clubs violated law, rules Myers By Shari Downhill A review of Oregon health clubs by state Attorney General Hardy Myers found four clubs that have failed to provide critical cancellation and refund information to prospective members. Department of Justice investigators first looked at the health club industry last year after receiving complaints against a number of 24 Hour Fitness clubs that had refused to give prospective members copies of membership contracts as required by Oregon law. The Medford 24 Hour Fitness, slated to be completed in January, was not part of the original investigation or associated court actions. The fledgling club is open now with limited services and plans to be fully operational by early January. Myers sued the Pleasanton, Calif.-based health club giant in February to force the company to comply with state law governing health clubs. In August the company was found in contempt for violating two court-ordered settlement agreements and fined. Although 24 Hour Fitness agreed to rectify contractual violations, Attorney General investigators found the club�s sales staff continued to refuse to release copies of contracts for customer review. "We alleged they prevented prospective members from taking home membership contracts ... and for omitting five cancellation and refund policies" required by Oregon law, said Jan Margosian, a spokeswoman for the Attorney General�s Office. But 24 Hour Fitness spokeswoman Allison Weinfuss said refusing to release contracts "has never been corporate policy." Staff members could have released copies of the original contracts, she said. But because of the potential for fraud, original contracts, numbered for inventory control, were kept on site. The omission of cancellation and refund policies was a "clerical error," Weinfuss added. The main reason the contracts did not comply with Oregon law, Weinfuss said, was that clubs which had run out of original contracts "had been inadvertently shipped contracts from Texas and Washington." Contract laws in those states differ from Oregon. "As soon as we realized that, the error was corrected," Weinfuss said. Court actions filed in the most recent investigation involves Bucklet Holding Company, LLC (Apollo Fitness Center), Capitol Racquet Sports, Inc. (Courthouse Athletic Club of Salem), Fitness Experience, Inc. (Gold�s Gym of Salem/Albany, and Nautilus Plus of Oregon, Inc. (Gold�s Gym of Beaverton/Bally Total Fitness). Each of the four companies has agreed to send amended membership agreements to current members and to pay $3,000 in fines to the Consumer Protection and Education Fund. Reach reporter Shari Downhill at 776-4463, or e-mail [email protected] . Mail Tribune Home | Ottaway Newspapers, Inc. | Dow Jones & Co., Inc. | Privacy | Contact Us Copyright � 2000 Mail Tribune, Inc.