Defunct Wny Weight Loss Center To Make Refunds

Attorney General Spitzer today announced a court-approved settlement that will provide refunds to customers of a defunct Western New York weight loss clinic.

Advanced Weight Loss & Fitness of America, Inc. and its president, Fred Grant Morse III, consented to a court order that permanently bans the company and its operator from both the health club industry and the vitamin and dietary supplements industry in New York State.

"State law requires health club operators to post a bond to protect consumers," Spitzer said. "My office is committed to enforcement of this law and each year brings a number of enforcement actions against operators who have failed to take proper steps to protect consumers."

On April 1, 2002, Advanced Weight Loss closed abruptly without giving notice to consumers or refunding members' advance payments for services not provided. At that time, the firm was in violation of the state consumer protection law that requires most health clubs to post performance bonds that will guarantee the availability of refunds in the event of a closing.

Advanced Weight Loss began providing weight loss services from its locations in Orchard Park and Williamsville in 2000 and sold pre-paid memberships that varied in price from $392 to $692. Memberships terms varied from a few weeks to as much as seven to eight months. Regardless of the duration of the initial membership period, the contracts also entitled consumers to six weeks of "stabilization" after the membership term ended to be followed by "fifty-two weeks of maintenance." Many memberships also included a "lifetime maintenance" provision.

At the time Advanced Weight Loss closed down, at least 24 consumers had paid for memberships whose initial period was not yet completed. An additional 20 members received "stabilization" or "maintenance" services for only a brief period, but not for at least one year as required by the contract.

The consent decree requires Advanced Weight Loss and Morse to pay over $10,000 in restitution to 44 consumers who have complained to the Attorney General's office, plus an additional $4,000 into a restitution pool to compensate any additional consumers who come forward within thirty days.

Advanced Weight Loss also has consented to pay $1,000 in civil penalties.

Individuals who believe they are owed money by Advanced Weight Loss are encouraged to contact the Attorney General's consumer help line at (800) 771-7755.

This case was handled by Assistant Attorney General Dennis Rosen and Senior Investigator Peter Eiss of the Buffalo Regional Office.