The Federal Trade Commission (FTC) filed a lawsuit Wednesday against LA Fitness operators, accusing them of erecting unnecessary barriers to prevent consumers from canceling gym memberships.
The suit claims the company violated federal laws by failing to provide a straightforward cancellation process, allegedly leaving some members trapped in unwanted recurring charges.
California-based Fitness International, LLC, and Fitness & Sports Clubs, LLC — which run LA Fitness, Esporta Fitness, City Sports Club and Club Studio — operate over 600 locations nationwide with 3.7 million members, according to the FTC’s complaint.
“We are disappointed that the FTC has chosen to pursue this complaint,” Fitness International, LLC, President of Club Operations Jill Hill said in a press release obtained by the Daily Caller. “The allegations are without merit, and the statute the FTC relies upon – the Restore Online Shoppers’ Confidence Act (ROSCA), enacted almost 15 years ago – was designed to address only online retail transactions, does not require any specific method of cancellation, and has never before been applied to the health club industry. We remain confident that we will prevail in court.”
Memberships range from $30 to $299 monthly, plus voluntary add-ons like towel service or personal training, according to the FTC. The agency alleges LA Fitness forces consumers to cancel either in person or via mail, creating a maze of obstacles. (RELATED: Gym Thots Being Put In Their Place Is Oddly Satisfying)
Consumers must log into a website to print a cancellation form, but forgotten credentials allegedly require details like a “key tag” number and partial credit card info, the FTC stated. In-person cancellations are limited to one specific employee — often only available during hours when members are at work, despite most gyms operating up to 19 hours daily, according to the agency. Mailed cancellations allegedly demand certified or registered mail, adding costs, according to the lawsuit.
LA Fitness allegedly does not “clearly inform” members how to cancel add-ons separately without ditching the full membership, the FTC stated. Staff are trained to reject phone or email requests, and those stopping payments via banks allegedly face rebilling under new accounts, the agency claimed. The FTC claims this violates the FTC Act and Restore Online Shoppers’ Confidence Act (ROSCA).
“The FTC’s complaint describes a scenario that too many Americans have experienced – a gym membership that seems impossible to cancel,” Director of the Bureau of Consumer Protection Christopher Mufarrige stated. “Tens of thousands of LA Fitness customers reported difficulties — cancellation was often restricted to specific times or required speaking to specific managers who were often not present or available.”
Filed in the U.S. District Court for the Central District of California, the suit seeks refunds for affected consumers and a court order halting the alleged practices.
“It is important to note that most of our memberships, and all of our personal training memberships, are purchased in person at our club locations,” Hill’s statement added.
“Even so, 18 months before the FTC’s new ‘Click-to-Cancel’ rule was scheduled to take effect, we proactively launched an online cancellation option for all members, regardless of how they originally signed up. With just a few clicks, members may cancel online – a step we voluntarily implemented well ahead of regulatory deadlines. Although a federal court of appeals recently invalidated the FTC’s ‘Click-to-Cancel’ rule, we have chosen to keep our online cancellation program in place to provide members with yet another simple way to cancel. Members also have always had the option to cancel in person at any club, or by mail, and those who wish to do so can and do cancel in such fashion,” she continued.
“Our company works diligently to comply with all health club state laws regarding membership cancellations and to offer at a minimum every cancellation method specifically required by each state. Over the years, the company has taken many steps to improve its enrollment and cancellation processes,” the statement asserted.
“Fitness International remains dedicated to providing accessible, high-quality fitness options while maintaining compliance with all applicable laws. We will continue to defend our practices vigorously while ensuring our members receive clear, simple, and fair membership experiences,” the press release concluded.
Editor’s Note: This story was updated to include Hill’s statement.
