The NYC Department of Consumer Affairs took action against 187 gyms for deceptive billing practices

In 2024, the New York City Department of Consumer Affairs (DCA) issued warnings to 187 gyms across the city for using subscription traps — billing practices designed to make cancellation difficult, charge members without clear consent, or continue charging after a member has tried to quit. The action targeted gyms that were violating New York's automatic renewal law, which requires businesses to get clear, written consent before charging a customer's card on a recurring basis and to make cancellation as easy as signup.

The DCA's enforcement effort focused on gyms that were either not honoring cancellation requests, burying cancellation instructions in fine print, requiring members to cancel in person only, or continuing to charge cards after a member had formally requested to stop. These practices trap members into paying for memberships they no longer use or never intended to keep long-term.

If you belong to one of the gyms that received a warning, or if you're considering joining a gym in New York City, understanding your rights under the automatic renewal law can protect you from unexpected charges and make it easier to cancel when you're ready.

Key Takeaways

  • New York law requires gyms to get your written consent before charging your card for a recurring membership and to make cancellation as simple as signup.
  • Gyms cannot require you to cancel in person, by phone, or through any method harder than the way you signed up — if you joined online, you must be able to cancel online.
  • A gym must honor a cancellation request within a reasonable time and stop charging your card once the cancellation takes effect.
  • If a gym continues to charge you after you've cancelled, you can file a complaint with the NYC Department of Consumer Affairs or dispute the charges with your credit card company.
  • The 187 gyms that received warnings are now required to comply with the law or face fines and legal action.

What New York's automatic renewal law requires gyms to do

New York's automatic renewal law, part of the General Business Law, sets specific rules for any business that charges customers on a recurring basis. For gyms, this means they must obtain your clear, written consent before the first charge and before any material change to the terms — such as a price increase or change in billing date. The consent must be separate from other terms and conditions, not buried in a long contract.

Gyms must also provide you with a simple, easy-to-use mechanism to cancel. If you signed up online, you must be able to cancel online. If you signed up in person, the gym cannot force you to cancel only by phone or in person. The cancellation method must be as straightforward as the signup process. Once you request cancellation, the gym must stop charging your card and must confirm the cancellation in writing.

The law also requires gyms to send you a reminder before each charge, showing the amount, the date, and clear instructions on how to cancel. This reminder must arrive at least three business days before the charge is processed.

How the DCA's warning affects gyms and what members should expect

The 187 gyms that received warnings from the DCA are now under notice that they must comply with the automatic renewal law or face penalties. The DCA can impose civil penalties of up to $500 per violation, and violations can add up quickly if a gym has been charging hundreds of members illegally. In some cases, the DCA may also seek restitution — money returned to members who were overcharged.

For members of these gyms, the warning means the DCA is monitoring compliance. If your gym continues to use subscription traps after receiving a warning, you have a stronger case if you file a complaint. The DCA's action also signals to other gyms in the city that enforcement is active, which may encourage broader compliance across the industry.

However, a warning does not automatically mean your gym will refund past charges or change its practices overnight. You may still need to take action yourself — either by requesting a refund directly from the gym, disputing charges with your credit card company, or filing a complaint with the DCA.

Steps to take if your gym is charging you unfairly

If you believe your gym is violating the automatic renewal law, start by requesting cancellation in writing. Send an email or letter to the gym's billing department with your membership number, the date you want the cancellation to take effect, and a request for written confirmation. Keep a copy of this request and note the date you sent it. This creates a paper trail if you need to dispute charges later.

If the gym continues to charge you after you've requested cancellation, contact your credit card company or bank and dispute the charges. Explain that you cancelled your membership and the gym did not honor the request. Most card companies will reverse charges if you can show evidence of the cancellation request. This is often faster than waiting for the gym to process a refund.

If the gym refuses to cancel or continues charging despite your request, you can file a complaint with the NYC Department of Consumer Affairs. You can file online at the DCA website or call 311. Include your membership agreement, proof of your cancellation request, and copies of the charges you dispute. The DCA will investigate and may take enforcement action if the gym is in violation.

What to look for when signing up for a gym membership

Before you join a gym, read the membership agreement carefully and look for red flags. Check whether the gym clearly states the price, the billing date, and what happens if you want to cancel. The cancellation terms should be easy to find and should not require you to visit in person or call during specific hours.

Ask the gym directly how you cancel and get the answer in writing. If the staff cannot explain the cancellation process clearly or if they seem reluctant to discuss it, that's a warning sign. A gym that makes cancellation easy has nothing to hide.

Make sure you understand whether the membership auto-renews. Some gyms offer month-to-month memberships that renew automatically unless you cancel, while others offer fixed-term memberships that end on a specific date. Know which type you're signing up for and when your renewal date is. Set a phone reminder a week before your renewal date so you don't forget to cancel if you want to.

Pay attention to the consent process. The gym should ask you to agree to the recurring charges separately from other terms. If the price, billing date, or other key terms are buried in fine print or combined with other policies, that's a sign the gym may not be following the law.

How to learn about your gym received a DCA warning

The NYC Department of Consumer Affairs publishes enforcement actions on its website, including the list of gyms that received warnings. You can search the DCA's enforcement database or contact the DCA directly to find out whether your gym is on the list. Knowing this can help you decide whether to stay with the gym or look for an alternative.

If your gym is on the list, you have extra leverage if you file a complaint. The DCA already knows the gym has a history of violations, so your complaint adds to a pattern of behavior. This makes it more likely the DCA will take action and may increase the chance of getting a refund.

Your rights under New York law and how to enforce them

New York's automatic renewal law gives you specific rights as a consumer. You have the right to clear, written consent before any charge. You have the right to cancel as easily as you signed up. You have the right to a reminder before each charge. And you have the right to have charges stop immediately once you cancel.

If a gym violates these rights, you can pursue several remedies. You can request a refund directly from the gym. You can dispute charges with your credit card company. You can file a complaint with the DCA. And in some cases, you may be able to join a class action lawsuit if other members have been harmed in the same way.

New York also allows consumers to recover damages if a gym violates the automatic renewal law. This means you may be able to recover not just the overcharges, but also additional compensation for the violation itself. An attorney can advise you on whether your situation qualifies for damages.

Frequently Asked Questions

Can a gym require me to cancel in person?

No. If you signed up online or by phone, you must be able to cancel the same way. A gym cannot require you to visit in person, call during business hours, or use a method that is harder than how you joined. If your gym insists on in-person cancellation, that's a violation of New York law.

What should I do if my gym keeps charging me after I cancelled?

Contact your credit card company or bank immediately and dispute the charges. Explain that you cancelled your membership and the gym did not honor the request. Provide copies of your cancellation request if you have them. Most card companies will reverse the charges while they investigate. You can also file a complaint with the DCA.

How long does a gym have to stop charging me after I cancel?

The gym must stop charging your card within a reasonable time after you request cancellation — typically within one or two billing cycles. The law does not specify an exact number of days, but delays beyond the next billing date are generally considered unreasonable. If the gym continues charging you more than one billing cycle after your cancellation request, that's a violation.

Can I get a refund for charges before I cancelled?

You can request a refund from the gym, but the gym is not required to refund charges that were made before you cancelled, as long as those charges were authorized. However, if the gym violated the law — for example, by not getting your consent or by not honoring a previous cancellation request — you may be able to recover those charges through a dispute with your credit card company or through a complaint to the DCA.

What if my gym is not on the DCA's list of 187 gyms?

The 187 gyms are those the DCA has already investigated and warned. Other gyms may still be violating the law but have not yet been caught. If your gym is using subscription traps, you have the same rights and remedies regardless of whether it received a warning. You can still cancel, dispute charges, and file a complaint with the DCA.