FTC sues LA Fitness over complicated membership cancellations

The Federal Trade Commission (FTC) filed a lawsuit against the operators of LA Fitness and other gym chains in response to complaints regarding excessively complicated cancellation policies. According to the FTC's complaint, filed in California federal court, tens of thousands of customers reported encountering significant obstacles when attempting to cancel their memberships, which ranged from requiring an in-person visit to specific gyms to mailing a cancellation request with unclear instructions. The commission’s investigation revealed that customers were often misled about the cancellation process at the point of signing up for their memberships. The complaint noted that members were frequently informed they had to communicate with only one specific employee for cancellations, limiting the hours in which this could be done despite the gyms being open for long hours. Furthermore, the FTC asserted that many customers did not have the necessary information, such as membership numbers and partial credit card details, readily available, complicating the cancellation process even further. Notably, the FTC asserted that LA Fitness employed a series of confusing and opaque methods to notify customers about cancellation options and failed to disclose that additional services could be canceled separately. Many members who sought to terminate payments through their banks or credit card companies reported being rebilled, often under different account numbers. The complaint highlighted that LA Fitness had illegally charged hundreds of millions of dollars in unwanted recurring fees due to these practices, which the FTC argued are in violation of the FTC Act and the Restore Online Shoppers’ Confidence Act. In response to the lawsuit, Fitness International, the parent company of LA Fitness, stated that the allegations are without merit and expressed disappointment in the FTC's actions. Company representatives emphasized that most memberships were purchased in person and that they had already adopted measures compliant with the now-void "click-to-cancel" rule, which was intended to ease the cancellation process for recurring subscriptions. They claimed to be diligent in adhering to all health club state laws regarding membership cancellations and stressed that they offer multiple cancellation options, including online processes alongside in-person and mail-in methods. The ongoing legal battle highlights widespread frustrations among gym-goers about membership cancellation processes and raises significant concerns regarding consumer rights and accountability in the fitness industry.