Thursday, March 13, 2008

consumer - Health Club Act - excessive initiation fees - class certified

Allen v. Holiday Universal et al. - ED Pa. - March 11, 2008

http://www.paed.uscourts.gov/documents/opinions/08D0283P.pdf

The court certified the class in this case, whose "upshot...is that the Health Clubs violated Section 2165 of the HCA [73 P.S. 2161 et seq.] by charging grossly excessive initiation fees. Section 2165 provides, in relevant part, that the amount of any initiation fees imposed by a health club shall be reasonably related to the club’s costs for establishing the initial membership[, and] shall not be imposed for the purpose of circumventing the requirements of this act."

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