NY Settles with Equinox for Allegedly Making Consumers Sweat over Negative Option Plans

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  • New York AG Letitia James entered into a settlement with Equinox Group, LLC (Equinox Group), which operates fitness services under Equinox, Equinox+, and SoulCycle, resolving allegations that its subscription and cancellation practices violated state and federal consumer protection laws.
  • According to the settlement, Equinox Group allegedly failed to clearly disclose automatic renewal terms, provide required subscription acknowledgments, and offer accessible online cancellation options as required by state and federal law.
  • Under the terms of the settlement, Equinox Group will pay $600,000 in penalties, fees, and costs, and provide restitution of up to $100 per person to certain subscribers who attempted to cancel. The company is also required to clearly disclose material subscription terms, obtain affirmative consent, and provide written acknowledgments with cancellation information.
  • We have previously reported on the FTC’s “Click-to-Cancel” rule, which amends the Negative Option Rule to further regulate subscription cancellations. A bipartisan coalition of 26 AGs submitted a comment letter in support of the FTC’s proposed amendments.
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