The New York Attorney General has ordered Equinox Group to change its subscription practices, pay US$600k in penalties and offer refunds on its 'hard to cancel' memberships.

The Office of the Attorney General (OAG) found that Equinox Group failed to clearly disclose its subscription terms or provide consumers with the subscription acknowledgment required by New York law. It also failed to offer cost-effective and easy-to-use online cancellation mechanisms.

As a result the high end operator must pay penalties, change its subscription practices and offer refunds to subscribers who tried to cancel their membership but could not.

“New Yorkers should be able to cancel a membership they no longer use or want without breaking a sweat,” said Attorney General, Letitia James. “The Equinox Group made it challenging for customers to end their membership, costing them time and money. As a result of my office’s settlement, New Yorkers can now cancel their membership with Equinox, SoulCycle, or any of Equinox Group’s brands much faster.”

New York law requires subscription terms to be clearly disclosed to customers, including the minimum term, the fact that the subscription renews, and the cancellation policy.

Importantly, businesses must also obtain affirmative consent for automatic renewals, provide a post-purchase acknowledgment, and offer a cost-effective, timely and easy-to-use cancellation mechanism.

The OAG found that Equinox’s subscription terms were not clear and appeared in fine print disclosures or within a hard-to-understand terms and conditions document.

The OAG said that Equinox did not obtain informed affirmative consent from subscribers and did not provide them with a post-purchase acknowledgment. In addition, Equinox’s cancellation process was complex and difficult and time-consuming to navigate.

As well as paying penalties and restitution, Equinox Group must improve its disclosures, obtain informed affirmative consent from subscribers, and provide customers with an acknowledgment, including cancellation information. Cancellation information must also be clearly and conspicuously disclosed in the subscription agreement and on an easily accessible website page for each brand.

This is disappointing negative publicity for the industry which has been dogged with the reputation of having onerous contracts that make it difficult for people to leave. As well as being off-putting to consumers, tying people into contracts with small print suggests a lack of confidence in the product.

Footnote

In the UK, The Digital Markets, Competitions and Consumers Act has just come into force (26 May 2025), tightening up legislation around recurring payments.