FTC Takes Legal Action Against L.A. Fitness for Complex Cancellation Policies

The Federal Trade Commission has initiated a lawsuit against the organizations running L.A. Fitness and affiliated gym chains for allegedly imposing overly intricate cancellation procedures on their members.

The lawsuit, filed in a federal court in California, accuses Fitness International and Fitness & Sports Clubs of purposefully complicating the process of canceling memberships to retain customers and continue charging fees. According to the FTC, these practices have reportedly resulted in hundreds of millions of dollars being collected in unwarranted fees.

These companies operate several gym brands, including L.A. Fitness, Esporta Fitness, City Sports Club, and City Studio, managing more than 600 locations throughout the United States and servicing over 3.7 million members.

Christopher Mufarrige, head of the Consumer Protection Bureau, pointed out in a statement that numerous Americans find themselves trapped in gym contracts that are near impossible to terminate. Many L.A. Fitness patrons have shared that cancellations often demanded specific timing or required interaction with certain managers who were not always accessible.

Memberships at these gyms range from $30 to $299 monthly, with an upfront payment for the first and last month's dues, as well as annual fees. The FTC's complaint highlights the confusing cancelation processes, which include a difficult-to-navigate in-person method and another by mail.

The complaints describe the cancellation methods as being unnecessarily opaque, challenging, and inconsistent. These processes are not thoroughly explained during the membership signup phase, leading to customer confusion and frustration.

Fitness International has publicly responded to the lawsuit, dismissing the accusations as baseless and expressing disappointment in the FTC's decision to file this complaint.

Jill Hill, president of club operations at Fitness International, emphasized that the majority of memberships, along with all personal training subscriptions, are acquired directly in club venues. Despite the FTC's proposal not being enacted, the company provides an online option for canceling memberships, alongside the traditional in-person and mail methods.

Hill further stated that their operations align with state regulations concerning gym membership cancellations and that they consistently offer cancellation methods mandated by state laws. Over time, efforts have been made to refine both registration and cancellation procedures for the convenience of members.