24 Hour Fitness has agreed to pay $1.3 million to members who allege that they were misled about increasing membership fees, according to CBS Los Angeles.
The settlement was filed with the Orange County District Attorney’s Office on Wednesday, and included no acknowledgement of wrongdoing on the part of the fitness franchise.
The lawsuit alleges that from the year 2006 and onward, 24 Hour Fitness sold prepaid memberships with the guarantee of a low annual renewal rate.
Prosecutors claim that the company later changed that policy without informing members, raising annual renewal rates by up to 300 percent.
Under the terms of the settlement, members who prepaid in 2006 or after will have the right to renew their contract at the guaranteed lifetime rate and will also receive a partial refund for the higher rates already paid.