The Federal Trade Commission (FTC) sued LA Fitness and other gyms on Wednesday, claiming they force consumers to go through hoops to cancel their memberships. The lawsuit against Fitness International and Fitness & Sports Clubs seeks more straightforward cancellation policies.
Fitness International operates franchises including LA Fitness, Esporta Fitness, City Sports Club and Club Studio.
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Christopher Mufarrige, director of the commission’s Bureau of Consumer Protection, shared a statement regarding the suit, saying: “The FTC’s complaint describes a scenario that too many Americans have experienced — a gym membership that seems impossible to cancel.”
“Tens of thousands of LA Fitness customers reported difficulties. Cancellation was often restricted to specific managers who were often not present or available,” Mufarrige said. “The FTC will not hesitate to act on behalf of consumers when it believes companies are stifling consumers’ ability to choose which recurring charges they want to keep.”
The FTC said the gyms listed in the lawsuit have more than 3.7 million members at more than 600 locations nationwide.
‘Illegally charged hundreds of millions of dollars’
The lawsuit targets specific cancellation practices. It states that members must visit their gym’s website and print out a form using a login that is rarely used otherwise. Then, the FTC says, members must mail the form in with paid postage. The other option is to hand the form to a specific employee or manager designated to perform the procedure.
As a result, these gyms have “illegally charged hundreds of millions of dollars in unwanted recurring fees.”
The FTC is requesting a court order to block hard-to-cancel policies at the gyms. The suit also seeks monetary compensation for customers.
Fitness International responds to allegations
Jill Hill, president of club operations at Fitness International, shared a news release in response to the suit. She said the lawsuit’s accusations are “without merit.”
She said Fitness International began an online cancellation alternative more than a year and a half ago. However, she noted most memberships are initiated in person.
“Members also have always had the option to cancel in person at any club, or by mail. Those who wish to do so can and do cancel in such fashion,” Hill said.
“We remain confident that we will prevail in court,” she added.
What happened to ‘click to cancel?’
During the Biden administration, the FTC adopted a “click-to-cancel” rule that was intended to make cancelling a subscription or membership as easy as it was to sign up.
Last month, however, days before the rule was scheduled to take effect, a federal appeals court struck down the regulation. The court said the FTC had failed to analyze the rule’s cost and benefits.
