HomeMy WebLinkAbout10-1499COMMONWEALTH OF PENNSYLVANIA : IN THE COURT OF COMMON PLEAS OF
BY ATTORNEY GENERAL CUMBERLAND COUNTY, PENNSYLVANIA
THOMAS W. CORBETT, JR., .
Petitioner, C o
: ASSURANCE OF VOLUNTARY sz
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: COMPLIANCE
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MECHANICSBURG FITNESS, INC. t/d/b/a - w
GOLD'S GYM OF CAMP HILL, Lin ? y ?? -0
Respondent
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ASSURANCE OF VOLUNTARY COMPLIANCE
AND NOW, comes the Commonwealth of Pennsylvania, acting by the Office of
Attorney General through the Bureau of Consumer Protection ("Commonwealth"), which has
caused an investigation to be made into the activities of Mechanicsburg Fitness, Inc. t/d/b/a
Gold's Gym of Camp Hill, pursuant to the Unfair Trade Practices and Consumer Protection
Law, 73 P.S. §§ 241-1 - 201-9.3 ("Consumer Protection Law"), and the Health Club Act, 73 P.S.
§§ 2161- 2177 ("Act"); and states the following:
WHEREAS, Petitioner is the Commonwealth of Pennsylvania, acting by Attorney
General Thomas W. Corbett, Jr., through his Bureau of Consumer Protection, with offices
located at 15th Floor, Strawberry Square, Harrisburg, Pennsylvania 17120;
WHEREAS, Respondent Mechanicsburg Fitness, Inc. ("Respondent"), is a Pennsylvania
business corporation with a registered business address of 18 Devonshire Square,
Mechanicsburg, Pennsylvania 17050;
WHEREAS, Respondent, at all times relevant hereto, engaged in trade and commerce
within the Commonwealth of Pennsylvania as the owner and operator of a for-profit health club
known as Gold's Gym of Camp Hill ("Gold's Gym"), located at 3401 Hartzdale Drive, Camp
Hill, Pennsylvania 17011;
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WHEREAS, Respondent has registered the fictitious name Gold's Gym with the
Pennsylvania Department of State, Corporation Bureau.
BACKGROUND
1. In April 2004, Respondent began operating the health club known as Gold's Gym
of Camp Hill, located at 3401 Hartzdale Drive, Camp Hill, Pennsylvania 17011.
2. Respondent failed to register with the Health Club Administrator prior to opening
the health club, as required by Section 2177 of the Act, 73 P.S. § 2177.
Respondent has operated the health club continuously since April 2004.
4. During the course of its operation, Respondent utilized a health club contract
which included an automatic renewal provision, in violation of Section 2164(b) of the Act, 73
P.S. § 2164(b), as well as a "Club Equipment Fund" fee, in violation of Section 2173 of the Act,
73 P.S. § 2173.
5. On June 3, 2008, Respondent applied for registration of its health club pursuant to
Section 2177 of the Act, 73 P.S. § 2177.
6. Respondent's registration as a health club exempt from the filing of financial
security pursuant to Section 2173 of the Act, 73 P. S. § 2173, became effective July 11, 2008.
7. Respondent subsequently filed a surety bond pursuant to Section 2171 of the Act,
73 P.S. § 2173, and received a new health club registration effective May 21, 2009.
8. The current contract in use by the Respondent, which has been reviewed and
approved for compliance with the Health Club Act by the Health Club Administrator, is attached
hereto and incorporated as Exhibit "A."
9. Based upon its investigation, the Commonwealth believes that Respondent has
engaged in conduct violative of the Act, including, but not limited to, the following:
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a. Failing to register the health club at least thirty (30) days prior to
advertising, offering for sale, selling or providing health club services
pursuant to a health club contract, in violation of Section 2177 of the Act,
73 P.S. § 2177.
b. Entering into health club contracts with consumers which contained
provisions prohibited by the Act, including an automatic renewal clause,
in violation of Section 2164(b) of the Act, 73 P.S. § 2164(b), and a "Club
Equipment Fund" fee, in violation of Section 2173 of the Act, 73 P.S. §
2173.
10. The aforesaid violations of the Act are deemed to constitute violations of the
Consumer Protection Law pursuant to Section 2175(a) of the Act, 73 P.S. § 2175(a).
11. The aforesaid methods, acts or practices constitute unfair methods of competition
and/or unfair or deceptive acts or practices in the conduct of trade or commerce in violation of
the Consumer Protection Law, including without limitation, the following:
a. Causing likelihood of confusion or of misunderstanding as to the source,
sponsorship, approval or certification of goods or services in violation of
73 P.S.. § 201-2(4)(ii)
b. Causing likelihood of confusion or of misunderstanding as to affiliation,
connection or association with, or certification by, another in violation of
73 P.S. § 201-2(4)(iii)
C. Representing that goods or services have sponsorship, approval,
characteristics, ingredients, uses, benefits or quantities that they do not
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have or that a person has a sponsorship, approval, status, affiliation or
connection that he does not have in violation of 73 P.S. § 201-2(4)(v)
d. Engaging in any other fraudulent or deceptive conduct which creates a
likelihood of confusion or of misunderstanding in violation of 73 P.S. §
201-2(4)(xxi).
WHEREAS, Respondent is desirous of complying with these civil laws of the
Commonwealth and has agreed to cease and desist from the aforementioned conduct;
WHEREAS, under Section 201-5 of the Consumer Protection Law, this Assurance of
Voluntary Compliance shall not be considered an admission of a violation for any purpose; and
WHEREAS, this Assurance of Voluntary Compliance ("Assurance") is accepted by the
Commonwealth pursuant to Section 201-5 of the Consumer Protection Law, 73 P.S. § 201-5, in
lieu of commencing statutory proceedings under Section 201-4, 73 P.S. § 201-4.
SETTLEMENT TERMS
NOW THEREFORE, effective from the date of the signing of this Assurance of
Voluntary Compliance, Respondent agrees for itself, its successors, assigns, officers, directors,
agents, employees, and any and all other persons acting on its behalf through this or any other
corporate or business device as follows:
I. The Recitals are incorporated herein and made part hereof.
II. Iniunctive and Affirmative Relief
A. Respondent SHALL comply with any and all provisions of the Health Club Act
and the Consumer Protection Law, and any amendment thereto, and is
permanently enjoined from any violation thereof.
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B. Respondent SHALL NOT use a membership contract which includes an
automatic renewal clause, unless the contract provides for a renewal option for
continued membership which must be affirmatively accepted by the buyer at the
expiration of each contract term, as outlined in Section 2164(b) of the Health Club
Act, 73 P.S. § 2164(b).
C. While registered as a health club exempt from filing financial security,
Respondent SHALL NOT charge members any fees other than an initiation fee
and equal monthly installments, as outlined in Section 2173 of the Health Club
Act, 73 P.S. § 2173.
III. Monetary Relief
A. Consumer Restitution - Respondent shall pay restitution for consumers who file
a claim, complaint or restitution request with the Office of Attorney General,
Bureau of Consumer Protection, within thirty (30) days of the date this Assurance
is filed (hereinafter the "Effective Date"), and whose claims for restitution are
validated as set forth below:
(1) Any claim, complaint or restitution request that is postmarked by
the thirtieth (30th) day after the Effective Date of this Assurance
shall be deemed timely. Any such complaints made directly to
Respondent shall be forwarded within ten (10) days to the
Commonwealth at: Bureau of Consumer Protection, 15th Floor,
Strawberry Square, Harrisburg, Pennsylvania 17120.
(2) Restitution shall be paid to consumers who demonstrate to the
satisfaction of the Commonwealth that they were harmed by the
conduct of the Respondent which occurred prior to the Effective
Date and which constituted violations of the Consumer Protection
Law and the other laws cited hereinbefore.
(3) In order for a consumer to be eligible for consideration for
restitution from the Respondent hereunder, the consumer must
provide adequate documentation which supports his or her claim
and/or complaint, and a sworn affidavit from a consumer may also
be required by the Commonwealth.
(4) Respondent agrees to fully cooperate with the Commonwealth and
shall supply the Commonwealth with any and all information and
documents requested by the Commonwealth, within twenty (20)
days of the request, with regard to any consumers who submit
complaints within the aforementioned thirty (30) day period. This
shall include any written response Respondent wishes to make to
the specific consumer complaint made.
(5) The determination of whether a consumer shall receive restitution
hereunder and the determination of the amount, timing, and
manner of any such restitution paid to such consumer shall be
within the sole reasonable discretion of the Commonwealth.
(6) The Commonwealth shall provide Respondent with a list of
validated claims filed by consumers who are entitled to restitution
hereunder, after which, Respondent shall have forty-five (45) days
from the date of submission of the list to issue checks payable to
the individual consumers and to forward said checks to the
Commonwealth for disbursement to individual consumers.
B. Required Payment - Upon signing this Assurance of Voluntary Compliance
("Assurance"), Respondent agrees to pay the sum of Three Thousand and 00/100
Dollars ($3,000.00), by certified check, cashiers check, or money order, made
payable to the Commonwealth of Pennsylvania, Office of Attorney General, to be
allocated as set forth below:
Civil Penalties - The amount of Two Thousand and 00/100 Dollars
($2,000.00) of the Required Payment shall be allocated as civil penalties
and be distributed to the Commonwealth of Pennsylvania, Treasury
Department.
2. Public Protection and Education Purposes - The amount of One
Thousand and 00/100 Dollars ($1,000.00) of the Required Payment shall
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be distributed to the Commonwealth of Pennsylvania, Office of Attorney
General, to be deposited in an interest-bearing account from which both
principal and interest shall be expended for public protection and
education purposes.
3. This Required Payment shall be in addition to any monies Respondent
pays under Paragraph III (A) above.
IV. Miscellaneous Terms
A. The Court shall maintain jurisdiction over the subject matter of this Assurance of
Voluntary Compliance and over Respondent for the purpose of enforcing this
Assurance.
B. Time shall be of the essence with regards to Respondents' obligations hereunder.
C. Nothing in this Assurance of Voluntary Compliance shall be construed to waive
or limit any right of action by any individual, person or entity, or by any local,
state, federal or other governmental entity.
D. Joyce Freeman is the President and sole shareholder of Respondent, and hereby
states that she is authorized to enter into and execute this Assurance of Voluntary
Compliance; and, she further agrees to execute and deliver all authorizations,
documents and instruments which are necessary to carry out the terms and
conditions of this Assurance of Voluntary Compliance.
E. Any failure of the Commonwealth to exercise any of its rights under this
Assurance of Voluntary Compliance shall not constitute a waiver of its rights
hereunder.
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F. This Assurance of Voluntary Compliance may be executed in any number of
counterparts and by different signatories on separate counterpart, each of which
shall constitute an original counterpart hereof and all of which together shall
constitute one and the same document. One or more counterparts of this
agreement may be delivered by facsimile or electronic transmission with the
intent that it or they shall constitute an original counterpart hereof.
G. This Assurance of Voluntary Compliance sets forth all of the promises,
covenants, agreements, conditions and understandings between the parties, and
supersedes all prior and contemporaneous agreements, understandings,
inducements or conditions, express or implied. There are no representations,
arrangements, or understandings, oral or written, between the Parties relating to
the subject matter of this Assurance that are not fully expressed herein or attached
hereto. Each party specifically warrants that this Assurance is executed without
reliance upon any statement or representation by any other party hereto, except as
expressly stated herein.
H. Respondent understands and agrees that if it has made any false statement in or
related to this Assurance of Voluntary Compliance, that such statement is made
pursuant to and under penalty of 18 P.S. § 4904 relating to unsworn falsifications
to authorities.
L Respondent agrees by the signing of this Assurance of Voluntary Compliance that
it shall abide by each of the aforementioned provisions and that the breach of any
one of these terms of this Assurance of Voluntary Compliance shall be sufficient
warrant for the Commonwealth of Pennsylvania to petition the Cumberland
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County Court of Common Pleas, or any court of competent jurisdiction, to assess
the penalties provided for under Sections 201-8, 201-9, and 201-9.1 of the
Consumer Protection Law, 73 P.S. §§ 201-8, 201-9 and 201-9.1, and to order any
other equitable relief which the Court deems necessary or proper.
J. This Assurance of Voluntary Compliance shall have the same force and effect as
a Permanent Injunction issued pursuant to Section 201-4 of the Consumer
Protection Law, 73 P.S. § 201-4.
[Signatures on following page]
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WHEREFORE, intending to be legally bound, the parties have hereto set their hands
and seals.
FOR THE PETITIONER:
COMMONWEALTH OF PENNSYLVANIA
THOMAS W. CORBETT, JR.
ATTORNEY GENERAL
Date: 3 10 By: ?-
Michael C. Gerdes
Deputy Attorney General
Attorney I.D. #88390
Date:
Pennsylvania Office of Attorney General
Bureau of Consumer Protection
15th Floor Strawberry Square
Harrisburg, PA 17120
Phone: 717-787-9707
Fax: 717-705-3795
FOR THE RESPONDENT:
MECHANICSBURG FITNESS, INC.
By:
Joyce Freeman
President of Mechanicsburg Fitness, Inc.
COUNSEL FOR THE RESPONDENT:
Date: By:
Stuart J. Magdule, Esquire
Attorney for Respondent Mechanicsburg
Fitness, Inc.
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WHEREFORE, intending to be legally bound, the parties have hereto set their hands
and seals.
Date:
FOR THE PETITIONER:
COMMONWEALTH OF PENNSYLVANIA
THOMAS W. CORBETT, JR ATTORNEY
GENERAL
By!
Michael C. Gerdes
Deputy Attorney General
Attorney I.D. #88390
Pennsylvania Office of Attorney General
Bureau of Consumer Protection 15'h
Floor Strawberry Square Harrisburg, PA
17120 Phone: 717-787-9707 Fax:717-
705-3795
FOR THE RESPONDENT:
MECHANICSBURG FITNESS, INC.
Date: r - / Q By k
JPresident of Mechanicsburg Fitness, Inc.
COUNSEL FOR THE RESPONDENT:
Date: t - FI - (0 B
J. dole, sqA for Respondeburg
Fi
tness, Inc.
10
EXHIBIT °°A"
Rate Guarantee: ? Yes ? No Expires on:
Bar Code ANNUAL
?o 43 OLD'f3 GFV]W@ Membership Agreement
A Franchises of Gold's Gym Fnrrehising, Inc.
CAMP HILL
3401 Hartzdale Dr., Suite 101, Camp Hill, PA 17011 Date'
(717) 303-2070
re. a wew?oevon?yAe aa.o ass.a« dra s+a?wa+ "sa?+H*«u"?.r.s«x",nwnadwcn.oa roe ? NEW ? RENEWAL ? REWRITE
"°"•E""''ue°"°"a°"°"? aC 20M ? PRIMARY MEMBER ? SECONDARY MEMBER
first Name Last Middle Initial Social SecuAty #
Street ApL fe City state Zip Code ? MALE
? FEMALE
Home Work Phone Bhthdate
In Case or ey (Na Emergency Phone
It R
mcer
Source Referring Me J'.1
This agreement is for thild embership in
Gold's Gym-Camp HII m erMEMBERSHIP TYPE:
Renewal Options:
M s acc
ount is
0 AUTOMATIC RENEWAL: gi=
fully paid to date, the mamba renew on a
month-to-month basis at the nd pan the affirmative
consent of the Member. After initial , ayor may cancel
at any time by following the C8B urea on the
reverse side of this Agreement. C & n to increase
monthly renewal dues during any period, the rate
guarantee is in effect
Monthly dues: $ per month _far_=` om"ewal.
Member's initials: ,
)-? 1 YEAR NON-RENEWABLE MEMBERSHIF This elment
will expire !Club will cont act m urin
45 days prior to expiration, and Member may ch to t
another 12 month term. No enrolment or processing felt dueil
Member renews for another term prior to the expiration` date abovel
Member's Initials,
Membership, Disclosures & Agreements
Payment
1Dide membership begins O Statement Coupons
i 1
L Date initial term ends 1 1
3. Monthly dues for initial term S
4. Initiation or processing fee S
& NEW guarantee: f awal 5
& Total due today: $
7. Remaining balance: $
II.Tctalageemefftvalue: Vft6+Lner1 S
DEFAULT AND LATE PAYMENTS: should you default on =ant oblipti n as called
fork eis_ ?reamak, ysu,?rSe to Wy ?axabls it, ant coalsof aisgbn, indudng
but not d 10 edon ws. court rents, and aeomey fins. A daftuft owns
when any payment duo underlie ageamne is mma am to days bta. should aryl
paymefd became more tw ien drys pet due, you vA bs dferwd a lea fie. An
so ce fee vA8 be I I, I ed for Now dad, drat c r lh cad, or order rained to bfsuadent
abbe a aaryry crier mnml. Nam Nhamba b mxd* drma by el-,' q c tmMs banter
(EFn,tecBlfbs canapmy,Praaarae reserves#w foaaft*EFT
et amaels owed by tfie ltefffia ??f?q a=r481 Ws fees and service fees. Subbctto
apps Sufi and FedeN Law. NOT& fa* waddy duos by EA' , are
wbiem? m UM pr nwft km me d mmft dwa N E F.T, payment is slopped or
chatged.This WE not a/atof any oMagovbbna of thle agmanent.
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RATE GUARANTEE: Member agrees to pay $28.00' as 8f,
additional part of Member's dues during initial term and ary
subsequent renewal year in order to lock monthly dues ra%.*"{ V 1-1
Members initials:
** if Member decides to opt out of this portion of Member'ad
the rate guarantee is void forthe upcoming renewal year. Club d,
then increase dues upon renewal by at (east $3.00 per month, and
2nd PRY. Schedule
NurnberofPswiseft P Amount PaymaM Due Date
may increase monthly dues in future renewal years by a similar nt,
amount. Member may ne-institute rate guarantee by following the provisions in this section prior to the next renewal year.
'initial term and renewal term of agreement, respectively, may notexceed a period of 12 months.
NOTICE: Any holder of this contract or note Is subject to all claims and d
seller of goods or services obtained pursuant hereto or with the proceeds
exceed amounts paid by the debtor hereunder.
NOTICE: This agreement is subject to all applicable Federal, State and I&
84 =3 RIGHT TI • ff you wish to cancel this mil act, you may c;anW
return receipt requested, written notice to the health club. The notice must say
contract an must be hand delivered or mailed before 12:00 midnight of the thin
a c )y of this contract. The notice must be delivered or mailed to +dd"s Gym, 31
17011. in some cases you may also cancel this contract if you signed it before th
dub moves or goes out of business ff you become permanently disabled, or Ncl
health chub may be entitled to a certain portion of the contract price. N the health
you a refund, there may be a bond or letter of credit under which you are entitled
csrdadly? Enforcement of the Health Club Act Is by the Attorney General of the Con
attorney of the county in which the health dub Is located. You may ado bring a
violated, you may contact the State Bureau of Consumer Protection or your local I
The buyer may cancel the contract without penalty within throe business days of Its signing and the NWt
t1woof. Upon receipt of notice of cancellation underthis paragraph, the health dub MO refund to the buyer a
fee, paid under the Cor#act,
Do not sign this agreement until you have read both sides. See reverse side for other ca ncelladon
NOTICE: Until the Club has provided the buyerwkh a signed copy ofthe contradxrtitoen In f?di comp
87, buyer may cancel the contract at any tone withou : penalty, and shall be refunded any and ail mon
CLUBREPRESENTATNE MEMBER
W.QUEST F(
PiRWOUNT w? ft G1 PVft
ACCEPTANCE «.: w« . d.kao"k a."I vmws
DATE
pAm..e.mm,weeme,s,a
? Ammcen Ew- ? mw ass O M. ? OZ<rava 13 &waClsb
EXP.DHSr
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as
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the debtor could assert against the
ry hereunder by'the debtor shall not
by e bound by mthe
b
sign and receive
01, Camp Hill, PA heakh
you cancel, the
or refuses to fflWq
mad your conovicir
Inta or the district
V your rights are
EFT AND CR9W CARD
DRAFT ACnC(XUNTS
D 0..*VAo ? s.,egeA a1U1HBNBmaeR (BOWq
ee6ketoareaa«i"a "enee0m BANK KAM
tgnrew eeelmaew«era,aeaebbmdew araePe,maageak.Be«rawm«ymrmM ramrrrmroYec rmeec:arPryme,+«rau "mew.
prlmaaese.ewsrof?,eee«e. a+a«.ese.eseam.wveastarea.P«va«rssaww+a«•
:oR"`s?.°"irm?•ere'?"mar"oOdeacwme'0.waf??ara.«so"""eeMr?t?r ".oPaera"AaoDNrNwaNm
T?,gir?peeare?«PY°?aamaeMCpeetDObb M*?b9A0P
aea,reerela„aa, ._. _ _ PLFABaATTACMAVDID OR BLANK CHECK
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Reorder from HAAS Prftng Co., Inc. • (717) 761-0277 * www heas-pnrdrrng.oom Rev. 3109 GG
MEMBERSHIP: Your membership is a contractual privilege to use the fadlitles from tlme to time offered by the Club during the Club's hours of
operations. The Club reserves the right to start, change, or eliminate fadtities, services and programs offered from tlme to time; to start, change
or eliminate fees for existing or new es, services and programs; and to charge its hags or operation. Your membership does not confer any
, vnership Interest M the Club or its property and confers no right to participate in the management or operation of the Club.
RELEASE WAIVER OF LIABILITY & INDEMNIFICATION AGREEMENT. You, on behalf of yourself and any de ndent(s), represent and agree as
follows; (a) that you understand that the use of the b ub's facilities, equipment, services, programs and premtses includes an Inherent dek of in jury to
p and property: (b) that you are in good ph cal condition and have no disobilldes, diseases, illnesses or otter conditions that could prevent you
and using the Hub's ladliees out hniurkhg yourself or Impairing your health; and (c) that you have consldNd a physician concerning
program chatwB net expose you to risk of injury or impairment to your health and that your phvaidan has approved your contemplated
a at the Club. You understand that risk of Injury includes but is not limited to injuries aridng t)oin or misting to the use by you or your
d (a) or others of exercise equipment and machines, locker rooms, saunas, showers and other wet areas and other Club facilides; Injuries
from or relating to participation by you or others in supervised or unsupervised acflWft or programs throughout the Club; Injuries and medical
ens arising from or relating to the two of the Club's facilities such as heart attack, stroke, dealb. had stress, asthma, sprains, strains, broken
ones, sees, tendons and ligaments among others; and accidental in occwning anywhere an the Club, including lobbies, hallways,
e rooms, saunas, and dressing rooms or activities associated with the Chub which are ceded an anywhere in the Club or while
or from the Ckib. Accidental injuries include those causes by you, those caused by other persons and those of a ahp and fah nature.
f you special exercise requirements ortlrrnitatlons, you agree to disclose them to the Club before using the Cktb's facilities orwheh seeking
help In Ing or carrying on an exercise program. You hereby agree that you undertake all exercise and use of Club factlll!", equipment and
services at your sole risk. By your execution thereof, you hereby waive all claims which you or any dependent may have
he at do hereby release the ClUb on your behalf and on behalf of any dependents, and agree to hold the Club harmless from
all ages, actions, suits, or causes of action to persons or arising out of or In any way connected with your or
your de is of th fadhties practises, equipment, services or rans,? those arising out of any active or passive negligent
ad or of as to such which may arise from the gross n ce or wWul misconduct of the Club. You do hereby further agree
and do h on tsef and any dependents, assume full respond for all rlsks of bo: ury. death or property damage due to the
n a of the Club. You seknowledge that you have carefully read this Waiver and Revises and fully understand It is a release
of that . Y g any right that you may have to bring a legal action to assert a claim against us for negligence. Member Inflials_
RULES AND REGULATIONS: M acknowledges the existence of and the need for rules and regulations Qovening use of Club's equipment
and facilities and participation i a and services (the "Rules . Member agrees to k>omgNy with the Rules and Regulations.
Club reserves the right to supplement the Rules a Reeggustiona from time to time at its ads clscradon. Club may cancel Member's
membershlp at arty time of the and Regulations o geterdN undesirable behavior. Under such circumstances, Member is not entitled
to a refund of any fees dues paid to the date of cancceelllation.
LIABILITY FOR PERSONAL PR Club shag not be gable to Member or any of Member's guests or invitees for any personal property that
is damaged, lost or stolen while on and Club's premises including, but not limited to, a vehicle or its contents or any property left in a MA 3a.
Member shag be liable to Club for any d&ffage to Club's facilities or any equipment, furniture or fixture located thereon caused by Member or any
Member's guests or invitees.
PAYMENT DEFAULT If Member jft4 ??Iy afnount when due under this Agreement. Club shag be entitled, at any time in its sole discretion,
to suspend or cancel Mamba's membership Uto require Member to Immediately pay all peel due balances. Suspension or cancellation shah not
relieve Member from the obligation to hpdd balances. Any payments awing from Member to Club that are not received when due shah bear
interest at the highest rate permitted f ar falls to pay any amount due to Club when due, Member shah pay all costs and expenses of
collection incurred by Club, including s fees and expenses.
RATE GUARANTEE: Member satgreet to 00 ban additional part of Members dues during initial tern and any subsequent renewal year in
t out of the Rate Guarantee dues peyrront upon renewal, the rate guarantee for the renewal
Jw1i
order to lock monthly dues rate. $hould r elect
year is voided and dub may then increase dues wIW notice byat least $3.00 per month in at and subsequent renewal years.
O Opt In O Opt Out Memberinitlls;,?
SURETY AND REFUND PROVISIONS: if you have sudWhed a loser damage as a result of a breach of this Agreement or a bankruptcy by the Club
and you do not receive a refund from the Club you Mille a daim?with the Surety no later then six (6) months from the date on which the injury occurred.
The comaol iMomrodon for the Surety by which the Glub ed is as follows: Platte River Insurance Company, 360 Sansome Street Suite
1000, San Francisco, CA 94104 Re: Bond Number 4!!t°•t1 68.
CANCELLATION PROVIWONS:
1. RELOCATION PROVISIONS: The buyer may cant! tpe contracO the buyer moves more than 25 additional miles from Club and is unable to
transfer the contract to a comparable Gold's Gym feel located v0ln five miles of hisAner new residence. Upon receipt of notice of cancellation
under this paragraph, Club shall refund to the hays sh monies aid in excess of the amount computed as of the data of relocation by dividing
the full contract price, including any intiation fee, by the nutter of wtstliko in the contract and multiplying the result by number of weeks elapsed
in the contract term, less a cancellation fee of up to $100.00 or, iFtftorethdrn half of the life of the contract has expired. up to $50.00.
2. DISABILITY: The buyer or his legal the, may WoCo? the contfpd if the buyer dies or becomes permanently disabled. A permanent
disability means a condition which pr=des he buyer from using one-tMiK`o more of the fadNies for six months or more and the condition is
verified by the physician. Upon receipt of notice of cannceiNi0on iWderA ponagraph, Ciub shah refund to the buyer all monies paid in excess of
an 'amount computed by dividing the full contract price, lncJ %M _ 4hitlatlon fee, by the number of weeks elassed in the contact term less a
cancellation fee to be determined by the dub or, If more thakfVi Uthii Ifs of the contract has expired, a tea of $50. In case of permanent disability,
Club may require tie buyer to submit to a physical examination by a physidm: to the buyer and Club. The addI iahel cost of the "Ith examination shag be bone by the Club. Additionally, the buyer shah be ahoweaa menthership term of the contract at no additional
cost for a period of time equal to the duration of a dusabllty where that bu t a disabl ich precludes the buyer from using one-third or
more of the health dub facilities for a period of leas than six months anti the?abilIV is vat by a physician.
3. CLOSURE: If the Club temporarily doses for 3D days or less, the buyer shat receive an sion of the membership term equal to the period
during which the Club Is dosed. The buyer may cancel this contract lf for more than 30 days and Gold's Gym fats to provide a
compatible facility within ten miles of the location designated in Gold's Gym receipt of notice of cancellation under this paragraph,
Gold's Gym shah refund to the buyer all monies paid in excess of an amount the full contract price. Including any initiation
fee, by the number of weeks in the contract temp and multiplying the result by then elapsed in the canted tam.
4. Cancellation promdure after Initind terra ends: Members; who-have patd'd94"ip tees Jlft full biltial term and whose accounts
are paid up may carpel their mtbinership attar reriilwat for any ropsga aRer . I : tltttt t1M IMr tbar complbtayf endalot*
j the Club Account CoictiMon Form, rotams It to the Club wfth.an Mat stg otgN• or in on. and psiy9 a 55g
1 canGeNdtlon sae OtdSfitn`mis witit•an ortytnal signature are acceptable. a c1m efQfctlvtl 0 dgys the fcmnt to recsivltd
dunys . re
by v^tub ;or ehna month aftAT the last dueg:psyrnsM, whichever is .rata: Club rater .. der Qn'foHa >it feast 20
membtrr's billle?.dhate in. order td avoid having an extramonth's dues paymerk dam MemblNs account. Member hae?tuuae
of glob arrtn anoelfstlon etfectNe rate.
5. No other sight to aanaal; itnaludinr;< for ttonrrss of teolUtieB: This Aguwurant is sot slnttiNaWs Marabor b0m ti4 trial of Via Initial tern
axapt a" ??tWas>dY pro+daad above iaiirtdntl, wtl!bru (imitation; by careen of Mealfrer's tb L40W the fa as of schild .Gym.
Member inttidsi;,__ qub represasditve hndfala:
6.OTHER CANEELLATIQN PROCRDt1RES: Ttb cu#nnx! a ralrrtractwfthln three bludness dayeas stated op P400, ' cena>.41 the stub
doses ? rocs fluear thirty days arnathe sap taha to Pkoridne a ? hen milao_a?:_ s `_ ?, irl`tfibe_c?ntra k
be csrncelgd;ivAhUh•?Iti:dogs eithr• S'srton• . r., y:: _
FREEZE POLICY: The Club may allow member in good standing to freeze this agreement, inch kxrtakt quehfyinp short term
modkid disability, extetnded travel outside Club eras, birth of a d*d, atc. Please contact Ckib Gonad Manager far a of Policy.
Fina dng adds time on the and of the initial or renewal term of this Agreement but does no stop the payment of dues. Clu as 00 fee to
freeze your membership, payable when Member requests the tome.
M15CELLANEt>U15: 0) This Agreement shelf be govemeJ by the internal laws of the State of Pennsylvania without regard of conflicts
of laws. (9) this Agreement shat be banding upon and inure to the benefit of the parties hereto and their respective balm, succe and permitted
assigns, R Oft Agreement and the rights and obligations hereunder shdi not be assignable or transferable by Merttha whh a prior written
consent of Ckbb. ConaeM may be withheld in Club's absolute discroton, (iv) N any term or proNalons of this Agreement is dedaed Msgd, invalid
or unenforceable for any reason whetaoeva by a coat of competent jurisdiction, the Illegality imraldky or ureMaroesbWty shall not alibi the validity
of the remainder of this Agreament, and to the extant pamltted by app0kxble laws, any such term or provision small be in ability or
reformed to the minimum extent for such to be erMoaable and ((v) all Mm permitted or required to be given to Ckdb be ghren by
personal delivery to the Gsnaai Manager of tine Club o by eetihad mall. return recdpt requested, addressed to the Club stilts, s set forth at
the beginning ofthis Agnsomant, to the attention of the Generd Manager.
Gold's Gym international, inc. or any related entity is not the owner or operator of this Gold`s Gym facility. The owner of this facility has lensed _
Gold's Gym Franchising, list. to use the Gold's Gym crake in oavhectbn with its operation. Neither Gold's Gym Franchising, Inc. no any sted
is oanUaaWely or otherwise liable to you beat that the owner is Table for debts and obligations of this facNty
The Fedwall Equal Credit Opportunity Act prohibits creditors from discriminating against zndit applicants with respect to any aspect o? a
credittra ccttfi as the bashiss of mce, color, roNgfon, national origin, sex, marital status, or age (provided tiro aopNea n e in to
contract). The agency that administers compliance with this law is the Federal Trade Commsaion, Equal Credit Opportunity, DC 20680. The Federal Equal Credit Opportunity Act prohibits creditors from discila rudIng agabut credit applicants with raspsct'M anY ctt+'
aspect of a credittransaction on the basis of race, color, retgion, national odgin, ssx, mnrlts status, or age (provided the appNcant has tiha $F°
capacity to contract). The agency that administers compliance with this law is the Federal Trade Commission, Equal Credit Opportunity,
Washington, DC 20580. Rev. 5109 GG, ASF
Notice: See other side to important Information
COMMONWEALTH OF PENNSYLVANIA : IN THE COURT OF COMMON PLEAS OF
BY ATTORNEY GENERAL : CUMBERLAND COUNTY, PENNSYLVANIA
THOMAS W. CORBETT, JR.,
Petitioner,
: ASSURANCE OF VOLUNTARY
V. : COMPLIANCE
MECHANICSBURG FITNESS, INC. t/d/b/a
GOLD'S GYM OF CAMP HILL,
Respondent
CER'T'IFICATE OF SERVICE
I hereby certify that on the 3F4 day of MO1? , 2010 a true and
correct copy of the foregoing Assurance of Voluntary Compliance was served by means of
United States first-class mail, postage prepaid, upon the following:
Stuart J. Magdule, Esquire
Smigel, Anderson & Sacks LLP
3?d Floor, 4431 North Front Street
Harrisburg, Pennsylvania 17110
Attorney for Respondent
Michael C. Gerdes
Deputy Attorney General
Attorney I.D. #88390
Pennsylvania Office of Attorney General
Bureau of Consumer Protection
15th Floor Strawberry Square
Harrisburg, PA 17120
Phone: 717-787-9707
Fax: 717-705-3795