Washington Sports Club’s parent company will pay D.C. $100,000 as part of a settlement over allegations that it did not adhere to the city’s COVID-19 emergency protocols and put customers at risk.
The settlement marks yet another legal tussle between D.C. Attorney General Karl Racine and the chain, which has been accused of making it difficult for members to cancel their memberships and not following the city’s COVID guidelines.
“The District put emergency orders in place to help protect the health and safety of residents and reduce the spread of COVID-19,” said Racine in a statement Tuesday. “Unfortunately, Washington Sports Club created an environment that not only violated those rules and put District residents at risk but also had the potential to spread COVID-19.”
Under the agreement, New TSI Holdings has seven days to pay the District $100,000 in penalties. The company must follow the city’s COVID-19 safety protocols henceforth, post signs on its doors outlining mask requirements, update its website to include information about social distancing guidelines, and ask any members who refuse to wear a mask to leave its facilities. The company must also follow Phase 2 reopening guidelines — which currently limit fitness centers to 25% of their maximum capacity — and any future restrictions Mayor Muriel Bowser imposes.
If the company follows these requirements, the agreement says it is free from charges brought forth by the District.
This is the third time Racine’s office has sued TSI Holding since Jan. 2019. At the time, the office filed the first in a series of lawsuits against the company for failing to inform members about the company’s cancellation policy and continuing to charge customers who did cancel their memberships. Racine’s office also settled with TSI Holdings in 2016 over deceptive cancellation practices, and the company agreed to stop misleading customers about its cancellation policies. But since then the office said it is aware of at least 50 complaints claiming the company has continued to mislead customers about cancellation policies and additional fees.
“TSI often tells consumers that they can cancel their memberships at any time for free; however, TSI actually requires six weeks’ written notice for cancellation and charges cancellation fees,” said Racine’s office at the time.
In Aug. 2020, Racine’s office filed its second suit alleging TSI Holding continued to charge customers late fees and did not let many cancel their memberships after Bowser’s stay-at-home orders took effect in March. Racine and other states’ attorneys general sent the company a letter in April 2020 asking it to stop charging membership dues to gym members during the public health emergency. The company responded 24 days later saying it would freeze all customer accounts and reimburse dues paid when its gyms were inaccessible. However, after the company’s gyms reopened on June 22 it had yet to follow through on its promise, and Racine’s office filed its second suit.
Last month, Racine’s office sued the company once more over allegations that the company’s Dupont Circle location failed to enforce the city’s mask mandate. Multiple gymgoers filed complaints with the city claiming the gym allegedly failed to enforce the mask mandate, did not set and enforce appropriate social distancing guidelines, and failed to properly disinfect equipment required under the District’s emergency order.
TSI Holdings currently owns three Washington Sports Club locations in D.C.’s Dupont Circle, Columbia Heights, and Glover Park (The company shuttered three of its locations during the pandemic). The company operates more than 150 gyms across the country and faces similar accusations of deceptive business practices at branches in New York City and Boston.
New TSI Holdings did not immediately respond to DCist’s request for comment.
Christian Zapata