FTC sues L.A. Fitness operators for "difficult" cancellation policies

FTC suing LA Fitness operators aft subordinate complaints implicit cancellation policies

FTC suing LA Fitness operators aft subordinate complaints implicit cancellation policies 00:24

The Federal Trade Commission connected Wednesday sued the operators of the fashionable gym franchise L.A. Fitness and different gyms for allegedly subjecting members to what it called "exceedingly difficult" cancellation policies. 

Filed successful California national court, the suit accused Fitness International and Fitness & Sports Clubs of intentionally utilizing analyzable cancellation procedures to forestall their customers from ending their gym memberships and different recurring charges. The California-based companies "have illegally charged hundreds of millions of dollars successful unwanted recurring fees" arsenic a result, the FTC said successful its complaint.

Fitness International and Fitness & Sports Clubs tally gym chains including L.A. Fitness, Esporta Fitness, City Sports Club and City Studio, according to the FTC, which said they collectively run much than 600 gym locations and person upwards of 3.7 cardinal members nationwide. 

"The FTC's ailment describes a script that excessively galore Americans person experienced – a gym rank that seems intolerable to cancel," said Christopher Mufarrige, the manager of the Consumer Protection Bureau, successful a statement released by the commercialized commission. "Tens of thousands of LA Fitness customers reported difficulties – cancellation was often restricted to circumstantial times oregon required speaking to circumstantial managers who were often not contiguous oregon available."

Both companies connection gym memberships for fees arsenic debased arsenic $30 per period and arsenic precocious arsenic $299 per month, and necessitate customers to wage for the archetypal and past period of their memberships upfront earlier incurring monthly dues and yearly fees, the FTC said. In its complaint, the committee elaborate "restrictive" and confusing cancellation requirements, with an in-person process that's hard to entree being 1 method, and a mail-in process being another.

"Each of these cancellation methods is opaque, complicated, and demanding—far from simple," the ailment said. "In particular, Defendants person not adequately disclosed however to cancel erstwhile consumers are signing up for their memberships and person presented different, often contradictory, cancellation requirements during motion up, successful rank agreements, and connected the Defendants' websites."

Fitness International addressed the suit successful a statement, saying "the allegations are without merit" and its enactment was "disappointed that the FTC has chosen to prosecute this complaint."

"It is important to enactment that astir of our memberships, and each of our idiosyncratic grooming memberships, are purchased successful idiosyncratic astatine our nine locations,"  said Jill Hill, the president of nine operations astatine Fitness International, successful the statement. Hill said the institution besides complied with the FTC's now-void "click-to-cancel" rule that aimed to marque it easier for consumers to cancel recurring subscriptions and memberships.

 Although the regularisation did not instrumentality effect, Hill said Fitness International has maintained an online programme for members to cancel their subscriptions, successful summation to the in-person and mail-in options.

"Our institution works diligently to comply with each wellness nine authorities laws regarding rank cancellations and to connection astatine a minimum each cancellation method specifically required by each state," Hill said. "Over the years, the institution has taken galore steps to amended its enrollment and cancellation processes."

• Lawsuit
• Federal Trade Commission