Members of California Fitness & Yoga at the conversation with the company's leadership representatives following a wave of closures. — Photo from California Fitness & Yoga

HÀ NỘI — Members of California Fitness & Yoga can take disputes over suspended gym services, contract termination and refunds to court, the National Competition Commission has said, as the popular fitness chain continues to scale back operations across Việt Nam.

The commission, under the Ministry of Industry and Trade, said it had received complaints and petitions from members affected by the suspension of operations at several clubs across cities, with many seeking to terminate their membership agreements and recover fees paid in advance.

In guidance issued this week, the commission said disputes concerning contract performance, termination and refunds were civil matters between consumers and the company. The rights and obligations of each party must therefore be determined based on the signed agreements and relevant legal provisions.

Under Article 14 of the 2015 Civil Code, civil rights may be protected through court proceedings or arbitration when they are infringed or disputed.

The commission noted that Article 21 of California Fitness & Yoga's publicly available membership handbook provides for dispute resolution through the Vietnam International Arbitration Centre (VIAC).

However, Clause 2, Article 67 of the 2023 Law on Protection of Consumers' Rights stipulates that where an arbitration clause is included by a business in a standard-form contract or general transaction conditions, consumers retain the right to choose another dispute resolution mechanism.

This means members can opt to bring their cases before a competent court rather than proceed through arbitration.

Members can file civil lawsuits individually or request that a social organisation involved in consumer protection represent them in legal proceedings, subject to the relevant authorisation and legal requirements.

Under Point g, Clause 1, Article 50 of the 2023 law, such organisations are permitted to represent consumers in civil lawsuits to protect their interests when requested and authorised in accordance with the law.

The commission advised affected members to retain their membership contracts and appendices, payment receipts, company notices, evidence of service disruptions, correspondence with the business and other relevant documents.

It stressed that the legal grounds for contract termination, the company's refund obligations and the amount to be reimbursed would be determined by the competent court if a lawsuit were filed and accepted.

The guidance comes amid mounting uncertainty surrounding California Fitness & Yoga, one of Việt Nam's best-known fitness chains, following a wave of supposedly "temporary closures" due to cash flow struggles that has disrupted services for thousands of members.

The chain, which entered the Vietnamese market in 2007, once operated around 35 clubs nationwide. Its network began contracting earlier this year, with four facilities in Hà Nội and Hồ Chí Minh City ceasing operations in July as the company reviewed its locations, leases and operating model.

The situation deteriorated in October, when numerous clubs across Hà Nội, HCM City, Đà Nẵng, Khánh Hòa, and Đồng Nai announced suspensions.

California Fitness & Yoga rejected claims that it had gone bankrupt or was closing its entire network, saying it was continuing to operate its remaining clubs – without really specifying which sites – while implementing a restructuring plan.

The situation remains unresolved so far, the company has not announced a comprehensive reopening schedule for its suspended clubs, while members are still awaiting clear arrangements for unused membership entitlements and refunds. — VNS