Luxury fitness giant Equinox Group has agreed to pay $600,000 in penalties and provide member refunds after New York Attorney General Letitia James found the company violated state subscription laws by making it unreasonably difficult for customers to cancel their gym memberships. The settlement, announced Friday, addresses long-standing complaints about Equinox's complex cancellation process across its flagship gyms, SoulCycle studios, and Equinox+ online classes.
Attorney General Finds Systematic Violations
The Office of the Attorney General determined that Equinox Group failed to clearly disclose subscription terms, provide required acknowledgments, and offer easy-to-use online cancellation mechanisms, violating multiple New York consumer protection laws. According to the AG's office, the investigation revealed that Equinox was "leaving critical membership information in fine print, not getting consent from its members for automatic renewals, and not letting subscribers know when a transaction had been made." The company's cancellation process was described as "complex, difficult, and time-consuming" in the settlement documents.
"New Yorkers should be able to cancel a membership they no longer use or want without breaking a sweat," said Attorney General James, emphasizing how "the Equinox Group made it challenging for customers to end their membership, costing them time and money." As a result of the settlement, New Yorkers can now cancel their membership with Equinox, SoulCycle, or any of Equinox Group's brands much faster.
Settlement Details and Customer Refunds
Under the settlement terms, eligible New York subscribers who filed complaints with Equinox Group, the Federal Trade Commission, Better Business Bureau, or the Attorney General's office between February 9, 2021, and December 31, 2024, may receive refunds of up to $250. Additionally, New York subscribers who attempted to cancel memberships during this period are also eligible for up to $100 in restitution, according to the official announcement. Affected customers must email their claims by August 2, 2025, with SoulCycle subscribers contacting [email protected] and Equinox gym members reaching [email protected].
The settlement requires significant operational changes beyond monetary penalties. Equinox must now make cancellation policies clear on websites for each of its brands and offer digital cancellation options, marking a substantial shift from previous practices that forced customers through cumbersome phone-based cancellation procedures.
Corporate Leadership and Locations
Equinox Group, headquartered at 31 Hudson Yards in New York City, operates over 100 full-service fitness clubs globally under the leadership of Executive Chairman Harvey Spevak. The company, which acquired SoulCycle in 2011, has built its reputation as a luxury lifestyle brand serving affluent customers across major metropolitan areas including New York, Los Angeles, Miami, and London. The company operates more than 300 club facilities and has generated over $5 billion in annual revenue as of 2025.
Part of Broader Consumer Protection Trend
This enforcement action represents the latest development in Attorney General James's ongoing campaign against difficult-to-cancel subscription services. The Equinox settlement follows a significant victory against SiriusXM Radio, where a court found in November 2024 that the satellite radio company violated federal law by forcing customers through burdensome cancellation processes. The SiriusXM case established that companies cannot make canceling subscriptions "clearly not as easy" as signing up.
The fitness industry has faced particular scrutiny over membership cancellation practices. New York Governor Kathy Hochul recently signed legislation requiring gyms to process membership cancellations within 10 business days, effective February 1, 2025. This new law will cut through "the frustrating red tape that has long plagued consumers" in the fitness industry.
Legislative Context and Future Implications
Attorney General James has proposed strengthening New York's consumer protection framework through the FAIR Business Practices Act, which would expand existing laws to prohibit "unfair" and "abusive" business practices beyond just deceptive ones. The proposed legislation specifically targets "companies that make it difficult for consumers to cancel a subscription" among other predatory practices. The bill would authorize both the Attorney General's office and individual consumers to seek civil penalties and restitution for violations.
The Equinox enforcement aligns with broader regulatory trends, including the Federal Trade Commission's "click-to-cancel" rule that requires subscription services to be as easy to cancel as they are to sign up for. This federal rule aims to address the widespread practice of making cancellations deliberately difficult across various industries.
Legal Implications
The settlement establishes important precedents for subscription-based businesses operating in New York. Under New York law, companies must clearly disclose subscription terms including minimum duration, renewal conditions, and cancellation policies while obtaining affirmative consent for automatic renewals. The Attorney General's office requires that health clubs allow cancellations through multiple methods including websites, email, telephone, mail, or in-person visits, with refunds processed within 10 business days.
This enforcement action demonstrates New York's commitment to holding major corporations accountable for consumer protection violations, particularly as subscription-based business models become increasingly prevalent across industries. The substantial financial penalty and operational reforms required of Equinox Group signal that state regulators will continue aggressive enforcement against companies that create unnecessary barriers to cancellation.
