Arca ApS, a popular fitness chain in Denmark, has recently been fined 600,000 Danish kroner for engaging in deceptive marketing practices. The company, which operates 18 fitness centers nationwide, failed to clearly inform consumers that signing up for a training offer also meant enrolling in a recurring membership.
According to the Consumer Ombudsman, Arca ApS promoted offers for two months of free training or heavily discounted prices on its website, emails, and social media platforms without adequately disclosing the ongoing payment membership attached to these offers.
The deceptive marketing activities took place between the end of February 2019 and the beginning of July 2023. The issue came to light in 2020 when numerous complaints prompted authorities to investigate and subsequently report the case to the police.
In addition to the fine for misleading consumers, the Consumer Ombudsman has found that Arca ApS violated the Contract Act and acted against fair business practices by charging a 60 kroner “energy supplement” fee. Customers who were charged this fee may be entitled to a refund as the Ombudsman deems the price increases invalid due to the company lacking proper authorization.
Arca ApS has also been criticized for imposing other invalid terms and conditions related to price changes and membership agreements, including:
– Ambiguous conditions allowing the company to alter membership terms with a two-week notice without specifying the circumstances warranting changes.
– Restrictions on consumers’ ability to terminate their memberships, requiring a receipt from Arca ApS for a valid cancellation.
– Mandatory online form submission for membership cancellations, with additional questions about recommending the company to others.
Consumer Ombudsman Torben Jensen emphasized that Arca ApS did not have a valid modification clause, rendering their price hikes illegitimate. Consumers who were overcharged may be eligible for refunds.
Arca ApS has appealed the district court’s ruling to the appeals court, as indicated in the press release. Efforts to obtain a comment from the company by DR, a Danish broadcasting corporation, are currently underway.
### Customers May Have Claims for Refunds
Consumers who believe they were misled by Arca ApS’s marketing tactics between 2019 and 2023 may have grounds to seek refunds for any overpayments or unauthorized charges. It is essential for affected individuals to review their billing statements and contract terms to determine if they are eligible for a refund.
### Invalid Terms Criticized by the Consumer Ombudsman
The Consumer Ombudsman has identified several invalid terms and conditions in Arca ApS’s contracts, including:
– Lack of specificity in the modification clause regarding membership terms changes.
– Restrictions on membership cancellations and requirements for proof of termination.
– Mandatory online form submission for cancellations with additional questions.
Consumers should be aware of their rights and consult with legal professionals if they believe they have been unfairly charged or misled by Arca ApS’s marketing practices. The Consumer Ombudsman continues to monitor the situation and ensure that consumer rights are protected in the fitness industry.