FTC Lawsuit Against LA Fitness
The Federal Trade Commission (FTC) initiated legal action against the operators of LA Fitness on Wednesday, accusing them of making it unnecessarily difficult for consumers to cancel their gym memberships.
The lawsuit alleges that the company has not offered a straightforward cancellation process, thereby violating federal regulations and leaving many members subject to repeated charges.
According to the FTC, the operators of Fitness International, which includes LA Fitness, Esporta Fitness, City Sports Club, and Club Studio, manage over 600 fitness locations across the country. Membership costs range from $30 to $299 monthly, with additional optional services like towel service and personal training available.
The agency claims that LA Fitness has created barriers, requiring consumers to cancel either directly or through the mail, complicating an otherwise simple process.
Consumers must log into the website to obtain a cancellation form, and if they’ve forgotten their credentials, they need more information like a “key tag” number and partial credit card details. Moreover, in-person cancellations can only be handled by one specific employee. Even though the gyms may operate for up to 19 hours daily, they limit availability when most members are busy with work. Mail cancellations often come with the requirement for certified or registered mail, incurring extra costs.
LA Fitness reportedly does not adequately inform members on how to cancel additional services without forfeiting their entire membership. Staff are trained not to accept phone or email cancellation requests, and those who stop payment via the bank may find themselves needing to open a new account to rejoin. The FTC asserts that these practices violate the FTC Act and the Restore Online Shoppers’ Confidence Act (ROSCA).
“The scenarios described in the FTC complaints reflect the experiences of many Americans,” said Christopher Mfarige, Director of the Consumer Protection Agency. “Thousands of LA Fitness customers have reported challenges, needing to consult specific managers who were often unavailable.”
The lawsuit, which is filed in the U.S. District Court for the Central District of California, demands refunds for affected customers and asks for a court mandate to halt these alleged practices.
LA Fitness has been reached for comments but has not publicly responded to the allegations.
