The Federal Trade Commission (FTC) has filed a lawsuit against Fitness International, LLC, operator of LA Fitness and other gym chains, alleging the company made it excessively difficult for consumers to cancel memberships and related services. Fitness International has denied the allegations and vowed to defend its practices in court.
According to the FTC’s complaint, the company required members to either appear in person or send a cancellation notice by mail, often through a cumbersome process. Consumers were directed to log into the company’s website to print a cancellation form, but the login required multiple credentials, including a “key tag” number and partial payment information, that many members did not readily have. Once at the gym, the FTC alleges, cancellations were restricted to a single designated employee, whose limited availability often forced consumers to return at inconvenient times. Members attempting to cancel by mail faced additional costs when directed to use certified or registered mail.
The agency claims these practices violated the FTC Act and the Restore Online Shoppers’ Confidence Act (ROSCA).
“The FTC’s complaint describes a scenario that too many Americans have experienced — a gym membership that seems impossible to cancel,” said Christopher Mufarrige, the Director of the Bureau of Consumer Protection. “Tens of thousands of LA Fitness customers reported difficulties — cancellation was often restricted to specific times or required speaking to specific managers who were often not present or available. 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.”
In response, Fitness International rejected the FTC’s claims in a statement, calling them “without merit.” Jill Hill, president of club operations at Fitness International, said: “We are disappointed that the FTC has chosen to pursue this complaint. 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 added that the company had launched an online cancellation option 18 months before the FTC’s “Click-to-Cancel” rule was scheduled to take effect, giving members the ability to cancel “with just a few clicks.” She noted that members have long had the ability to cancel in person or by mail and that the company remains in compliance with state laws on cancellations.
“Fitness International remains dedicated to providing accessible, high-quality fitness options while maintaining compliance with all applicable laws,” added Hill. “We will continue to defend our practices vigorously while ensuring our members receive clear, simple and fair membership experiences.”
The lawsuit was filed in the U.S. District Court for the Central District of California.
