FTC Lawsuit Against LA Fitness Over Membership Cancellations
The Federal Trade Commission (FTC) has initiated a lawsuit against the operators of LA Fitness, claiming that they have created unnecessary barriers for consumers trying to cancel their gym memberships.
The complaint alleges that LA Fitness has not provided a straightforward cancellation process, which violates federal law, often leading members to endure repeated charges unnecessarily.
The companies involved, including Fitness International, LLC, manage over 600 locations across the United States, operating brands such as LA Fitness, Esporta Fitness, City Sports Club, and Club Studio.
Jill Hill, president of Club Operations for Fitness International, expressed disappointment in a press release. She stated that the FTC’s claims lack merit, arguing that the Restoration Online Shopper Trust Act (ROSCA)—which was established nearly 15 years ago to govern online retail—does not mandate a specific cancellation method and has not been applied to the gym industry.
Membership fees vary, ranging from $30 to $299 per month, with additional options like towel services and personal training available. The FTC pointed out that cancelling requires navigating a convoluted process, with members needing to cancel online or via mail.
To cancel, members must log into the website to access the cancellation form, but forgotten credentials complicate this, as they require a “key tag” number and partial credit card info. Those wishing to cancel in person can only do so through one designated employee. While many gyms operate long hours, they often coincide with members’ work schedules, making cancellations even more difficult. Mailed cancellations reportedly require certified or registered mail, incurring extra costs.
The FTC noted that LA Fitness fails to inform members on how to cancel additional services individually without giving up their entire membership. It stated that employees are trained to reject phone or email cancellation requests, forcing those who stop payments to potentially restart under a new account. This conduct allegedly violates the FTC Act and ROSCA.
Christopher Mfarige, the Director of the Consumer Protection Agency, commented that the complaint reflects the experiences of numerous LA Fitness customers, citing complaints from tens of thousands who faced challenges in cancelling their memberships.
The lawsuit, filed in the US District Court for the Central District of California, seeks refunds for affected customers and requests a court order to halt these alleged practices.
In response, Hill added that most memberships, including personal training, are purchased directly at club locations. She mentioned that an online cancellation option was implemented for all members, irrespective of their initial sign-up method, 18 months prior to the FTC’s ‘Click-to-Cancel’ regulation coming into force. The company emphasized its commitment to providing clear and simple cancellation methods, abiding by all related state laws.
Hill concluded by affirming Fitness International’s dedication to offering accessible fitness options while ensuring compliance with legal standards, asserting that they will continue to support their practices while focusing on a straightforward membership experience for consumers.
