The Federal Trade Commission (FTC) has taken legal action against the operators of LA Fitness, alleging they have created unnecessary hurdles for consumers trying to cancel gym memberships. The lawsuit claims the company has violated federal laws by failing to provide a straightforward cancellation process, leaving some members stuck with unwanted recurring charges. Fitness International, LLC, and Fitness & Sports Clubs, LLC, responsible for LA Fitness, Esporta Fitness, City Sports Club, and Club Studio, run over 600 locations across the nation with 3.7 million members, according to the FTC’s complaint.
“We are disappointed that the FTC has chosen to pursue this complaint,” stated Jill Hill, President of Club Operations at Fitness International, LLC, in a press release. She emphasized that the allegations are baseless and criticized the FTC for relying on the Restore Online Shoppers’ Confidence Act (ROSCA), which she argues was not intended for the health club industry. Hill expressed confidence that the company would prevail in court.
The memberships, as stated by the FTC, range from $30 to $299 monthly, with optional add-ons like towel service or personal training. The agency claims LA Fitness forces consumers to cancel either in person or by mail, creating a labyrinth of obstacles. This approach, according to the FTC, falls short of providing the simple cancellation mechanism required by law.
Consumers reportedly have to log into a website to print a cancellation form, but forgotten credentials require details like a “key tag” number and partial credit card info, the FTC stated. In-person cancellations are restricted to one specific employee, often available only during hours when members are at work, despite the gyms operating up to 19 hours daily. The lawsuit also claims that mailed cancellations require certified or registered mail, adding extra costs for consumers.
LA Fitness allegedly fails to “clearly inform” members how to cancel add-ons separately without canceling the entire membership, according to the FTC. Staff are trained to reject phone or email requests, and those stopping payments via banks reportedly face rebilling under new accounts, the agency claimed. The FTC believes these practices violate the FTC Act and ROSCA.
“The FTC’s complaint describes a scenario that too many Americans have experienced – a gym membership that seems impossible to cancel,” said Christopher Mufarrige, Director of the Bureau of Consumer Protection. Many LA Fitness customers reported difficulties — cancellation was often restricted to specific times or required interaction with specific managers who were frequently unavailable. The suit, filed in the U.S. District Court for the Central District of California, seeks refunds for affected consumers and a court order to halt the alleged practices.
Hill’s statement emphasized that most memberships, including personal training memberships, are purchased in person at club locations. Despite this, the company launched an online cancellation option for all members 18 months before the FTC’s new “Click-to-Cancel” rule was scheduled to take effect. Although a federal court of appeals recently invalidated the FTC’s rule, Hill noted that the company has chosen to keep its online cancellation program in place.
Hill continued by stating that members have always had the option to cancel in person at any club or by mail, with many successfully doing so. “Our company works diligently to comply with all health club state laws regarding membership cancellations,” the statement asserted. Over the years, the company has taken various steps to improve its enrollment and cancellation processes.
Fitness International remains committed to providing accessible, high-quality fitness options while adhering to all applicable laws. The company plans to defend its practices vigorously, ensuring that members receive clear, simple, and fair membership experiences. The press release concluded by reaffirming Fitness International’s dedication to its members and compliance with the law.
The developments in this case highlight ongoing tensions between businesses and regulatory bodies over consumer rights and business practices. The FTC’s actions demonstrate its commitment to protecting consumers from potentially unfair business practices. As the case unfolds, it will likely draw attention to the broader issue of consumer protection in the fitness industry.
