HARRISBURG - Pennsylvania Attorney General Josh Shapiro has reached settlement agreements amid an investigation against two companies for possible violations of the Unfair Trade Practices and Consumer Protection Law in recent weeks.
The settlements were filed as assurances of voluntary compliance and featured two health clubs, one in Lancaster and one in Ardmore.
Figure Firm Space Inc. in Lancaster was one of the companies to undergo an investigation for an alleged violation. According to Shapiro's office, Figure Firm claimed that it had a required letter of credit when it actually didn’t.
It also allegedly entered into health club contracts with consumers who didn’t provide all of the proper information, violating the Health Club Act in more ways than one.
Figure Firm has reached a settlement. It is required to comply with each item in the Consumer Protection Law and is permanently banned from not doing so. It is also required to pay $423.25 for civil penalties and public protection and education. This settlement was reached on Dec. 19.
Dowd Company 2 LLC, doing business as Snap Fitness Havertown, in Ardmore reached an agreement with the attorney general a month later in response to alleged Health Club Act violations.
The company allegedly violated the act when it accepted pre-payments for membership without posting financial security properly. “Respondent violated the HCA by failing to post financial security with the Bureau before entering into health club contracts,” the court document details. It also was accused of incorrectly charging $75 for an early cancellation fee and $35 in other fees, as well as other violations.
The company agreed to follow all of the details in the Consumer Protection Law and the Health Club Act. It also has to pay $784 for civil penalties and public protection and education purposes.