AG Sues Gold’s Gym, Franchise Owner for Deceptive Practices

Warwick, RI – Attorney General Peter F. Kilmartin filed a civil suit Tuesday in Providence County Superior Court against the former owner of the defunct Gold’s Gym in Warwick, who promised memberships there in lieu of the North Providence location, closed in April.

Kilmartin is suing David Walker, individually, and Gable Fitness, Inc d/b/a Gold’s Gym, citing violations of Rhode Island’s Deceptive Trade Practices Act and the Rhode Island Health Club Act, according to a release from the AG’s office.

On April 10, North Providence Gold’s Gym members discovered the gym was closed. Walker, the owner of the Warwick and North Providence locations, informed his North Providence customers that their membership would be valid at his Gold’s Gym in Warwick.  Under Rhode Island Law, a customer may not get a refund of a pre-paid gym membership contract if there is another health club facility within 15 miles that accepts that contract.  The distance between the North Providence and Warwick locations fell within 15 miles.

But on May 18, Walker sold the Gold’s Gym in Warwick, which began operating under new ownership with the name Global Gym. Several consumers contacted the Attorney General’s Office to complain the owner of Global Gym charged maintenance fees to maintain a membership.

The Office of Attorney General has received more than 140 written complaints from Rhode Island consumers who allege that Mr. Walker solicited and accepted membership fees for services that could not and would not be provided, in violation of the Rhode Island Health Club Act, according to the release.

Prior to filing the lawsuit, Kilmartin’s office reports he filed a civil investigative demand requesting Mr. Walker respond to the Office to answer questions related to the consumer complaints. Walker did appear at the office in response to the demand.

Consumers who were members of Gold’s Gym and believes they are entitled to a refund, they should file a consumer complaint with the Consumer Protection Unit of the Office of Attorney General.