Bally to Give Refunds, Reform Advertising

Discussion in 'Trading' started by misctrader, Feb 16, 2004.

  1. Eliot Spitzer is going after Bally's now? Geez, that guy doesn't stop huh? LOL


    Bally to Give Refunds, Reform Advertising
    Monday February 16, 8:10 pm ET

    NEW YORK (Reuters) - Bally Total Fitness Holding Corp. (NYSE:BFT - News) has agreed to provide refunds to some customers who were misled about fitness center contracts or were denied the right to cancel memberships, New York Attorney General Eliot Spitzer said on Monday.

    Bally, a nationwide operator of commercial fitness centers, agreed to change its sales and advertising practices "after hundreds of consumers complained that deceptive ads and high-pressure sales tactics tricked them into signing long-term contracts and misrepresented the total price of the memberships," Spitzer's office said in a statement.

    Bally spokesman Jon Harris said the company was not found in violation of the law, but it has agreed to review individual cases to see whether they require a refund.

    Spitzer said the agreement with Bally requires the company to implement substantial reforms of its sales, training and advertising practices. He said the settlement requires Bally to improve its cancellation policies and better monitor its compliance with them.

    Bally agreed to provide pro-rata refunds to certain consumers who were misled about the legally binding nature of their contracts or were denied the right to cancel, Spitzer said.

    Harris said the reforms that Bally agreed to are already in place.

    "We didn't agree to anything we haven't been doing already," he said. "The complaints do not reflect the way we do business today or the way will do business going forward."

    Shares of Bally on Friday closed down 8 cents, or 1.2 percent, at $6.62 on the New York Stock Exchange (News - Websites) .