The U.S. Federal Trade Commission (FTC) has initiated legal action against the operators of LA Fitness, alleging that they create significant hurdles for consumers trying to cancel their gym memberships and related services.
In a complaint filed on Wednesday, the FTC accused Fitness International and its subsidiary Fitness & Sports Clubs of illegally imposing recurring charges that have cost consumers ‘hundreds of millions of dollars.’
The agency highlighted that tens of thousands of customers have voiced their frustrations with the cumbersome cancellation processes in place.
FTC Bureau of Consumer Protection Director Christopher Mufarrige described the situation as one faced by too many Americans: a gym membership that is virtually impossible to cancel.
Fitness International, based in California, operates several brands, including Esporta Fitness, City Sports Club, and Club Studio, across more than 600 locations with over 3.7 million members.
The FTC pointed to two alleged ‘unfair and unlawful’ cancellation methods used by these gyms for years: cancellations that must occur in person or through postal mail.
Both methods require consumers to download a cancellation form from the gym’s website, which necessitates logging in with credentials that many customers may forget.
For those who opt for in-person cancellations, the complaint notes limited hours and difficulties in finding a manager ready to process the forms.
Additionally, utilizing the mail option incurs extra costs for consumers.
The FTC described these cancellation methods as ‘opaque, complicated, and demanding,’ emphasizing that they are far from simple.
Furthermore, the agency alleged that the company has not adequately informed consumers about cancellation options when they sign up for memberships.
The FTC claimed that many members inadvertently sign up for additional services with recurring charges without receiving clear cancellation requirements.
While Fitness International introduced website cancellations for subscriptions tied to ‘stand-alone agreements,’ the FTC argued that the process still places unnecessary burdens on consumers.
Moreover, the option for online cancellation is reportedly buried within the company’s website, and members still cannot cancel memberships via the mobile apps the company provides.
Jill Hill, president of club operations at Fitness International, publicly expressed her disappointment with the FTC’s decision to pursue litigation.
She asserted that the allegations against the company were ‘without merit’ and expressed confidence that Fitness International would prevail in court.
In her statement, Hill highlighted that the statute relied upon by the FTC was initially designed to target online retail transactions and does not specify any required cancellation methods.
She further noted that this statute has never before been applied to the health club industry.
Hill mentioned that Fitness International proactively launched its online cancellation process 18 months prior to the FTC’s planned ‘click to cancel’ rule taking effect.
‘With just a few clicks, members may cancel online — a step we voluntarily implemented well ahead of regulatory deadlines,’ Hill said, affirming that the company maintained this offering to provide a more straightforward cancellation method for its members.
This legal action against Fitness International marks not the first instance of federal regulators addressing complaints about gym operators and subscription-based services complicating membership cancellations.
Under the current Biden administration, the FTC aimed to establish a ‘click to cancel’ rule intended to simplify the process for consumers wanting to terminate unwanted subscriptions.
However, a federal appeals court blocked the implementation of these proposed changes just last month, just days before it was set to take effect.
Through its litigation targeting Fitness International, the FTC aims to secure a court order to prevent what it deems unfair practices and seeks to provide restitution to consumers who have suffered due to the company’s challenging cancellation processes.
image source from：patch
