FTC sues LA Fitness over hurdles to canceling memberships

The Federal Trade Commission (FTC) has sued the operators of LA Fitness and other gym chains, alleging they made it excessively difficult for consumers to cancel memberships and related services. The agency is seeking a court order to stop the practices and recover money for affected customers.

According to the FTC’s complaint published on Wednesday, the companies used complicated procedures to make cancellation difficult. Customers seeking to end their memberships were told to either visit the gym in person or send a cancellation request by mail, after first downloading a form from the company’s website.

Resetting login credentials to access the form required multiple pieces of information, including membership numbers and partial credit card details, which many customers did not have readily available, according to the complaint.

Even when members reached the gym, the FTC said cancellations were restricted to a single employee and limited hours, despite locations being open up to 19 hours a day.

Customers attempting to cancel by mail allegedly faced unclear instructions, including whether a written notice without the official form was valid, and were told to send certified mail at their own expense.

The complaint also alleges LA Fitness failed to tell customers that they could cancel add-on amenities separately, and instead trained employees to reject requests made by phone or email.

Customers who tried to stop payments through their bank or credit card company were rebilled, sometimes under new account numbers, according to the FTC.

The FTC said the practices violate the FTC Act and the Restore Online Shoppers’ Confidence Act.

Fitness International, LLC and Fitness & Sports Clubs, LLC, both based in California, operate LA Fitness as well as Esporta Fitness, City Sports Club, and Club Studio. Together they run more than 600 gyms nationwide with over 3.7 million members.

Memberships cost between $30 and $299 a month, depending on location, with additional fees for services such as towel service and personal training.

“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. “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.”