(COLUMBUS, Ohio)—Ohio Attorney General Mike DeWine today announced a lawsuit against South Beach Fitness of Westerville LLC and its owners for violations of Ohio consumer protection laws. The business sold gym memberships to consumers but never opened the facility.
“Our primary goal is to obtain refunds for consumers,” Attorney General DeWine said. “Under Ohio law, businesses can sell gym memberships before the facility opens, but they can’t then fail to open the facility and not provide refunds.”
South Beach Fitness of Westerville planned to open as a fitness facility at 131 Huber Village Boulevard in Westerville. Between 2012 and 2013, the business entered into contracts with consumers indicating that the facility would be opening ‘soon.’ To date, the facility has failed to open and the business indicates that it will not open.
Seven consumers filed complaints with the Ohio Attorney General’s Office but additional consumers likely have been affected. While some complaints were resolved, others were not.
The lawsuit accuses the business and owners Steven Willis and Raphael Ortiz of violating Ohio’s Prepaid Entertainment Contracts Act and Consumer Sales Practices Act. Specific counts include failure to give proper notice regarding the facility’s opening date, requiring excess payment, failing to honor refund requests, and failure to deliver. In the lawsuit, the Attorney General seeks consumer restitution, civil penalties, and an injunction to stop further violations.
The South Beach Fitness facilities in Gahanna and Grove City are separate corporate entities from South Beach Fitness of Westerville, though they share common ownership by Raphael Ortiz.
Ohio’s Prepaid Entertainment Contracts Act applies to certain types of contracts where consumers pay in advance for services, such as a gym membership. Under the law, if a facility has not yet opened when the consumer signs the contract, the facility must open within 180 days (roughly six months) after the contract is signed.
Consumers who believe they have been treated unfairly should contact the Ohio Attorney General’s Office at 800-282-0515 or www.OhioAttorneyGeneral.gov.
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Documents
Lawsuit
Media Contacts
Dan Tierney: 614-466-3840
Kate Hanson: 614-466-3840