California Fitness members may sue to recover prepaid fees in Vietnam

The commission recently released guidelines on resolving contractual disputes involving California Fitness & Yoga members after receiving numerous complaints and petitions over the suspension of operations at several facilities within the chain.

The closures have affected members' ability to use services covered by their existing contracts.

Many have requested assistance in terminating their memberships and recovering fees paid in advance for services they have yet to receive.

According to the commission, disputes over contract performance, termination, and service fee refunds fall under the civil relationship between members and the company.

The rights and obligations of each party must therefore be determined based on the signed contract and relevant legal provisions.

However, the commission stressed that the right to file a lawsuit does not automatically guarantee a full refund of all fees paid.

It advised members to review their contracts, assess the extent to which the company has fulfilled its obligations, and consider applicable laws before choosing an appropriate dispute resolution mechanism.

Notably, an examination of the membership handbook published on California Fitness & Yoga's website found that Article 21 stipulates that disputes must be resolved through arbitration at the Vietnam International Arbitration Center.

However, under Clause 2, Article 67 of the 2023 Law on Protection of Consumer Rights, where an arbitration clause is included in a standard-form contract or general transaction conditions by a business, consumers retain the right to choose other dispute resolution methods when a dispute arises.

On this basis, the commission said members may choose to file a lawsuit with a competent court instead of pursuing arbitration as stipulated in their contracts.

Clause 1, Article 14 of the 2015 Civil Code also provides that when civil rights are violated or a dispute arises, legal protection may be sought through court proceedings or arbitration in accordance with procedural law.

2 legal options for members seeking to protect their rights

The commission outlined two ways for members to pursue legal action.

First, members may directly file civil lawsuits with competent courts, seeking resolution of disputes involving contract performance, contract termination, refunds of service fees, and other legitimate interests.

Alternatively, they may request that an organization involved in consumer protection represent them in legal proceedings.

The commission cited Point g, Clause 1, Article 50 of the 2023 Law on Protection of Consumer Rights, which allows consumer protection organizations to represent consumers in civil lawsuits concerning consumer rights when requested and duly authorized in accordance with the law.

To exercise their right to sue, members should prepare and retain relevant documentation, including membership contracts and appendices, payment receipts, company announcements, evidence of the actual provision of services, correspondence and requests previously sent to the company, as well as other supporting evidence.

Nguyen Quoc Hoan, a member of the California Fitness & Yoga branch in Long Bien, Hanoi, said several hundred customers in online community groups established to protect members' interests had expressed their determination to pursue the matter to the end.

Members are primarily seeking to recover money paid for services they have not yet been able to use, Hoan said.

Some have also called on authorities to intervene and consider freezing the company's assets to safeguard consumers' interests.

In its latest announcement, California Fitness & Yoga said it planned to reopen two facilities in Ho Chi Minh City's Vung Tau and Dong Nai City's Bien Hoa on Thursday, while providing no confirmed reopening schedule for its remaining locations.

However, according to accounts from members at the two facilities, the Bien Hoa branch has resumed operations, while the Vung Tau location remains closed despite the announced reopening plan.