FTC Lawsuit Against LA Fitness for Membership Cancellation Difficulties
The Federal Trade Commission (FTC) has initiated legal action against the operators of LA Fitness, asserting that the cancellation process for gym memberships has become excessively complicated for consumers.
Christopher Mfarige, the Director of the Consumer Protection Agency, remarked, “The FTC complaint highlights a situation that many Americans have unfortunately faced. Thousands of LA Fitness customers have reported encountering significant challenges.”
He added that the FTC is ready to act to ensure consumers can decide if they want to keep their memberships.
In response to the situation, LA Fitness has not provided any comments yet.
The lawsuit targets Fitness International, LLC and Fitness & Sports Clubs, LLC in federal court located in California’s Central District. The companies operate various gyms including LA Fitness, eSporta Fitness, City Sports Club, and Club Studios, encompassing over 600 locations and serving more than 3.7 million members.
Membership fees range from $30 to $299 per month, with an additional annual fee often applicable. To cancel a membership, LA Fitness stipulates that consumers must either visit the gym in person or send an email notification.
However, the FTC believes the process isn’t straightforward. The complaint cites a “confusing and complex method” that LA Fitness allegedly employs to hinder membership cancellations.
Initially, consumers must log into the website to print the cancellation form. If they forget their login details, LA Fitness requires the original “key tag” number and the first five digits of their credit card or bank account to reset their credentials.
Furthermore, the FTC claims there’s no option for members to submit a written cancellation request, nor is there guidance on what that request should entail. The agency noted that consumers were informed email cancellations had to be sent via certified or registered mail.
In its findings, the FTC observed similar barriers when people attempted to cancel directly. It noted that while most locations are open for 19 hours a day, only one employee is authorized to handle cancellations.
The FTC also alleges that LA Fitness actively discourages cancellation requests, training staff to refuse such requests over the phone or via email. Instead, it insists cancellations must occur in person or through specific mail channels.
Additionally, the agency pointed out that consumers attempting to halt charges on their bank or credit cards often find themselves re-enrolled under a new account number.
The FTC asserts that these practices breach the FTC Act, as well as the Restore Online Shoppers’ Trust Act (ROSCA), and seeks restitution for consumers who have been adversely affected.
