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Fitness club accused of fraud
HOW LONG IS A LIFETIME?:
Several members said they bought lifetime memberships because they trusted the President Chain Store, but now felt they had been deceived
By Ko Shu-ling
STAFF REPORTER
Tuesday, Mar 16, 2010, Page 2
A group of life members of a fitness club operated by President Chain Store Corp (PCSC) yesterday accused the company of fraud, saying their contracts were involuntarily terminated and that they were forced to pay more money for new memberships.
PCSC, the operator of the world’s third-largest 7-Eleven franchise, later issued a statement expressing regret over the allegation, saying it would continue to communicate with the members. The statement said it would return the fees based on their old contracts if members opted not to renew them.
Cheng Te-tsun (鄭德村) said they were told to pay NT$47,000 each year for “cleaning fees” if they wanted to enjoy the privileges of life membership after signing new contracts. Those refusing to do so would be barred from using the facilities on April 1, he said.
“I joined the club mainly because I trust President Group, but now its management’s concept of good quality, credibility and fair prices sound ironic,” he said.
Cheng said he paid NT$300,000 to join the club as a life member in 2000, but the club later changed hands, citing financial problems. Originally called President City, it was changed to BEING Sport after the change in management, he said. The club, however, is still managed by the group and appears to be doing good business, he said.
Despite the promise that old members’ rights would be protected, Cheng said members with lifelong and 10-year memberships were required to pay more if they wanted to enjoy similar privileges, while some of the benefits were reduced.
Another problem was new memberships were reserved for those aged between five and 70, he said, but many were older than the limit, disqualifying them from new memberships.
“We are not asking too much. We just want them to honor the original contract,” he said.
Cheng was among the 15 clubs members accompanied by Democratic Progressive Party Taipei City Councilor Hsu Shu-hua (許淑華) at a press conference at Taipei City Council yesterday morning. The members claimed there were at least a hundred more out there around the nation.
Lin Yu-jin (林玉金), another life member from Pingtung, said she was shocked when the club told her that she could no longer use the facilities starting next month.
Lin said that when she retired in 2000, she spent a large portion of her pension to become a member.
“I’m very happy there,” she said. “It’s unfair to take away my pension like that. I don’t have any problem losing it if the company went belly up, but it seems to me it is doing good business.”
Lin said she did not know why the club violated the contract and hoped the government would step in to help them.
Another life member, Lee Shu-jen (李淑珍), said she joined the club in 2000 mainly because she trusted President Group, but now she felt she had been deceived.
Showing her contract, Lee said it clearly stated it was a life membership and the club told her that the clubcard could be passed on to her children unless the company went out of business.
“However, it did not go out of business,” she said. “They still have employees and lawyers, but we don’t have anything.”
Taipei City’s consumer ombudsman Chong Ruei-hsian (鍾瑞祥) said the city would launch an investigation if the members filed an official complaint.
Hwang Yu-sheng (黃鈺生), Consumers’ Foundation secretary-general, said yesterday that the fees increase was “completely unreasonable.”
“Unless the courts have declared the sports club bankrupt or ordered it to liquidate its assets, the sport club’s change of management does not affect its legal entity status,” he said. “The rights of the sport club’s members should not have been affected. A ‘lifetime membership’ means for the member’s lifetime,” he said.
ADDITIONAL REPORTING BY SHELLEY HUANG
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