The Federal Trade Commission this week announced that it would sue the operators of LA Fitness, alleging that the gym franchise made it “exceedingly difficult” for gymgoers to cancel their memberships.
If successful, the FTC hopes to prohibit the unfair practices and return lost funds to the members who struggled to cancel memberships.
LA Fitness has more than 600 locations and nearly four million members, each paying between $30 and $299 per month for the base membership fee. Other additional fees, like towel service or personal training, may increase monthly dues. Currently, if members wish to cancel an LA Fitness membership, they must print out a cancellation form from the website before going in person to their home gym location to cancel. Once there, members must hope that the qualified team member is present to help them cancel — as not every team member is allowed to cancel memberships.
When confronted with consumer complaints, LA Fitness reported “trained staff to reject escalated requests and to deny cancellations requested by phone or email, reiterating that all cancellations must be done in person with one specific employee.”
The FTC alleges that all of these practices violate the FTC Act and Restore Online Shoppers’ Confidence Act.
“The FTC’s complaint describes a scenario that too many Americans have experienced – a gym membership that seems impossible to cancel,” said Christopher Mufarrige, 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.”
The parent company of LA Fitness, Fitness International, also operates Esporta Fitness, City Sports Club and Club Studio. This lawsuit would impact membership cancellation procedures at these chains as well.
