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California Fitness fined over bad sign

California Fitness Center, a US-based fitness chain, has been fined by the Fair Trade Commission for posting an "unclear" sign, a government official said yesterday.

"California Fitness Center's placement of "24 Hour" on its signboard can easily mislead consumers to believe the center offers 24-hour services," said Chen Chi-yuan (陳紀元), deputy chairman of the Commission.

The sign has violated the Fair Trade Law and the commission has reached a verdict to fine California Fitness Center NT$500,000, he said.

The company's three centers are only open until midnight.

The fine is relatively low, considering penalties for false advertising can go as high as NT$2.5 million.

The case was initiated in January 2002 when a letter of complaint was filed with the commission, saying California Fitness Center's sign indicates they are open around-the-clock, when in fact they are not.

Following several rounds of negotiations with the center, the commission concluded the violation did in fact exist.

In response, California Fitness Center's local office said yesterday that with the company is a subsidiary of 24 Hour Fitness Inc, and the "24 Hour" is a part of its trademark rather than identifying the center's operating hours.

US-based 24 Hour Fitness is one of the world's largest global fitness chains, with 280 clubs in the US and 130 in Europe.

The fitness giant entered Hong Kong in 1996 and then quickly expanded to Taipei, Seoul, Bangkok and Singapore.

Setting up its first center in Taipei's Dinghao shopping District in early 2000, California Fitness operates three outlets in downtown Taipei, including one near the Taipei railway station and another in Hsimending.

According to Katy Sung (宋依璇), an official at California Fitness Taiwan, the company designates its service hours on their literature. But the Fair Trade Commission said this is not enough.

"Most consumers are only exposed to this information after they sign up for fitness services," Chen said. "The public can easily be misled by the `24 Hour' sign."

California Fitness should notify its customers that it doesn't offer around-the-clock services, he said.

California Fitness Center Taiwan said they were disappointed with the decision.

"We are sorry for the misunderstanding and the company will try its best to clearly inform the public," Sung said.

The company may still appeal the decision, she said.

California Fitness Center is not the only venture that delivers misleading information.

According to the commission, spa center Natural Beauty (自然美), consumer electronic retailer Tsann Kuen 3C (燦坤), health and cosmetics retailer Watson's and many other companies have been fined for misleading advertising.
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