A few years ago, Dollar Shave Club proved that people like receiving perpetual refills of discounted basic items in the mail. Could this business model extend to other kinds of products? The company Brandless has launched an online store full of generic items where everything is less-processed and yuppie-friendly, and each item costs $3. [More]
memberships
Trump Golf Club Must Pay $5M To Members Who Paid Dues But Weren’t Allowed To Play
By 2.2.17
Former members who sued the Trump National Golf Club are owed more than $5 million after a federal judge ruled in found that the company breached its membership contract by taking plaintiffs’ dues while barring them from actually using the club. [More]
Why Are More Salons & Spas Offering ‘Membership’ Plans?
By 12.28.16
When you buy a gym membership, do you go more often than if you had to make the decision to go and pay separately for each visit? You go more often, because you’ve already paid for it. That’s what fans like about salon or spa memberships that keep them loyal to one business, and make sure they come back every month. [More]
10 Things You Should Consider Before Paying For Any Retail Membership
By 12.2.16
Memberships, once the exclusive domain of warehouse clubs like Costco and BJ’s, are officially hot right now. From Amazon Prime and Walmart ShippingPass to subscription boxes (like Birchbox) and membership programs from retailers including Bed Bath & Beyond and Restoration Hardware, companies aren’t content until they’ve turned occasional shoppers into loyal members. But should you join? Will it be worth the money? How will you know if a membership program is right for you? We break it down. [More]
DirectBuy Files For Bankruptcy, Lenders Will Take Over Company
By 11.3.16
You may remember DirectBuy, a store selling furniture and other items to spiff up your home that promises deep discounts to people who sign up for a pricey membership. This business model is apparently not working out for them, since the company filed for Chapter 11 bankruptcy protection this week. [More]
ClassPass Eliminating Its Monthly “Unlimited” Option
By 11.2.16
More than three months after ClassPass started ticking off customers by raising prices for its “Unlimited” monthly memberships — first on the East Coast and then on the West Coast — the startup fitness company has some more bad news: it’s getting rid of unlimited memberships entirely. [More]
Would You Buy A Free Shipping Subscription Only For Lands’ End?
By 5.4.16
Consumers really love Amazon Prime, a subscription service that now includes a variety of other perks, but began as a humble program that got subscribers free 2-day shipping. Now other retailers have started to wonder whether they can get customers to pay up for free shipping programs with additional perks. The latest retailer to try this is Lands’ End, which has introduced their program along with a more expensive and more stylish collection of clothing. [More]
Held In The Disney Movie Club’s Enchanted Prison
By 1.10.13
Sandra was trapped. She was trapped in the enchanted prison of the Disney Movie Club. She didn’t need someone to cast a spell and set her free, though: what she really needed was to pay off her entire account balance. The problem is that the enchantment robs the Movie Club of the ability to read checks, so they dragged out her departure by logging her $35 check as a $25 one. [More]
Sam's Club Absolutely Must See Your ID For One-Day Pass; Can't Say Why
By 4.30.12
Claudia is a Costco member, but when Sam’s Club advertised a one-day shopping pass in her local paper, she went to see what Sam’s had to offer. What the ad didn’t mention was that a photo ID would be needed to get the pass from the store’s customer service desk. Which is interesting, since you can actually print a pass from the Sam’s Club web site, presumably without holding your driver’s license up to the screen. [More]
Did The ECA Charge You For The Membership You Already Canceled?
By 9.30.10
Last year, we reported on the trouble that members of the Entertainment Consumers Association had with canceling their memberships, as well as other complaints about the group. Now, one reader reports that he was charged for the membership that he canceled earlier this year. [More]
DirectBuy Won't Let Me In Their Showroom Without My Husband
By 9.15.10
Reader Stacy writes in to let us know that DirectBuy refused to let her tour their showroom without her husband.
Massage Membership Rubbed Me The Wrong Way
By 8.20.10
Megan tried to quit her membership with Massage Envy, a national chain, in person, but was told she’d need to provide a request in writing. After she jumped through that silly hoop she was stuck with a charge of $10 more than she anticipated. Then a company rep told she would still be billed automatically for the membership she canceled. [More]
Urban Active Gym Appears Lets You Cancel, Then Charges You More
By 8.6.10
Gyms are notorious for being difficult to cancel your membership at, so at first Heather thought hers was different. They even backdated the cancellation date so she wouldn’t pay for the full month. So nice! A month later, collections called her. [More]
How LA Fitness Convinced Me To Cancel Two Memberships Instead Of One
By 6.7.10
One bungled customer service experience can change your whole outlook of a company. Joseph proves this as he talks about how LA Fitness — a gym he once adored — bought itself two membership cancellations instead of one by screwing up his attempts to cancel his partner’s contract. [More]
Planet Fitness Publicly Shamed Into Refunding Dead Member's Fees
By 11.25.09
Gregory Rowell has been dead for nearly two years, but no one knew that he’d set up an auto debit with Planet Fitness on a second checking account. The gym continued to debit his account each month until a bank employee notified the victim’s mother, Patricia Rowell. When she provided the death certificate and asked them to refund the money, they not only refused, but said it was her fault and offered her a six month membership instead. That’s when Rowell took her story to the local newspaper. [More]
24 Hour Fitness Sued For Charging Ex-Customers Fees
By 10.23.09
The gym chain made famous on NBC’s “Biggest Loser” is being sued for continuing to debit the bank accounts of customers who have canceled their memberships. The US Court of Appeals, Ninth Circuit, has given the green light to a class action lawsuit that says the chain is violating both the RICO Act and the Electronic Funds Transfer Act by keeping these zombie memberships active.
