FTC Sues Gym Chain For Making It ‘Exceedingly Difficult’ To Cancel Memberships

Authored by Naveen Athrappully via The Epoch Times (emphasis ours),

The Federal Trade Commission (FTC) filed a lawsuit against the operators of LA Fitness and other gyms over allegations that they make it “exceedingly difficult” for subscribers to cancel recurring gym memberships and related services, according to a statement issued by the agency on Aug. 20.

The FTC lawsuit was filed on Aug. 20 against Fitness International LLC and Fitness & Sports Clubs LLC, which together own and operate LA Fitness and other gym chains, including Esporta Fitness, City Sports Club, and Club Studio, which have more than 600 locations and more than 3.7 million members nationwide.

The lawsuit was filed in the U.S. District Court for the Central District of California for violating the Restore Online Shoppers’ Confidence Act (ROSCA) and seeks monetary relief for consumers harmed by the alleged practices.

The lawsuit alleges that the defendants use “difficult” cancellation procedures that are found to be time-consuming and inadequately disclosed to consumers when they join up. Members who wish to cancel must generate a cancellation form online and print it. Then, they need to submit the printed forms to the gym during limited hours.

The forms must be submitted to the “specific manager at the location who is authorized to process the forms,” and not just any gym employee, the complaint states. Another way to cancel is by certified or registered mail, which necessitates a visit to the post office.

The cancellation processes are “opaque, complicated, and demanding,” the FTC stated, adding that many consumers who have gone through the procedures “nevertheless find that they continue to be billed for their memberships.”

According to the agency, the gym operators have retained the system despite receiving tens of thousands of reports from consumers complaining about the cancellation procedures.

The companies offer gym memberships in the range of $30 to $299 per month, depending on additional services such as towel service or child care. The costs incurred by the consumer, while joining, include the first and last month’s dues, monthly recurring dues, and annual fees, the FTC stated.

“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 FTC’s Bureau of Consumer Protection.

The commission voted 3–0 to authorize the filing of the complaint.

According to ROSCA, an online seller must disclose all material terms before attempting to charge any consumer’s credit card, debit card, or bank account, and provide simple mechanisms to stop recurring charges. The FTC is the enforcer of this Act.

Gym Response

Fitness International President Jill Hill expressed disappointment with the FTC complaint in a company statement published on Aug. 20.

“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,” Hill said.

She said most of the gym memberships were done at physical locations and not online. The companies have “launched an online cancellation option for all members, regardless of how they originally signed up,” Hill said.

“With just a few clicks, members may cancel online—a step we voluntarily implemented well ahead of regulatory deadlines,” she said.

The companies work to comply with all health club state laws regarding membership cancellations, according to Hill.

The FTC had announced a “Click-to-Cancel” rule in 2024 under the Biden administration. The rule, which went into effect earlier this year, was postponed by the Trump administration to give businesses additional time to comply.

The rule mandates that canceling a subscription must be as simple as signing up.