Pennsylvania AG Sues Two Clubs

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HARRISBURG, PA -- Pennsylvania Attorney General Tom Corbett has filed consumer protection lawsuits against two Pennsylvania clubs, one of which closed last month after it was hailed by Allentown, PA, city leaders for its great deals.

Daro’s Extreme Fitness in Allentown and Nazareth (PA) Powerhouse Gym and Fitness Center failed to register with the state as a health club and also failed to post a bond or letter of credit with Corbett’s office, Corbett claims.

Daro’s opened earlier this year, advertising one-year pre-paid memberships of $99 to $199, before closing abruptly. The lawsuit seeks full refunds for about 200 consumers along with fines and civil penalties of up to $1,000 per violation. The Allentown mayor had held a ribbon-cutting at the club, which was praised by the city on its blog.

Nazareth closed last month before recently reopening in a smaller facility in a different town. The club charged as much as $600 for a two-year membership, but the club’s registration claimed it was exempt from posting a bond or letter of credit with Corbett’s office because no long-term memberships were being sold, according to the lawsuit.

Consumers did not receive refunds—even though the club was closed for more than 30 days—and failed to provide a comparable facility when it reopened, claims Corbett, who is seeking refunds for 146 consumers who paid for long-term memberships.

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