FTC Sues LA Fitness, Esporta Over Hard-to-Cancel Gym Memberships

The U.S. Federal Trade Commission (FTC) has initiated legal action against Fitness International and Fitness & Sports Clubs, the entities operating prominent gym chains including LA Fitness, Esporta Fitness, City Sports Club, and Club Studio. The lawsuit alleges that these companies have systematically made it “exceedingly difficult” for consumers to cancel their memberships, thereby illegally collecting hundreds of millions of dollars in recurring fees. This regulatory intervention underscores a broader federal effort to combat manipulative business practices that trap consumers in unwanted subscriptions.

• FTC filed a lawsuit against Fitness International and Fitness & Sports Clubs.
• The suit targets major gym chains: LA Fitness, Esporta Fitness, City Sports Club, and Club Studio.
• Allegation: Companies made membership cancellation “exceedingly difficult” for consumers.
• Claim: Illegally collected hundreds of millions in recurring fees as a result.
• The action is part of a broader federal effort against manipulative subscription practices.

Allegations of Convoluted Cancellation Processes

According to the FTC’s complaint, the alleged practices have burdened tens of thousands of members. Andrew N. Ferguson, Chairman of the FTC, highlighted the common challenges faced by consumers attempting to terminate their gym memberships. He noted that cancellation frequently required members to engage with specific managers who were often unavailable, while attempts to cancel via mail also encountered significant hurdles, diverging from simple and accessible methods.

The core of the FTC’s contention is that the available cancellation processes were deliberately convoluted. Consumers were allegedly forced to mail in forms or physically visit a brick-and-mortar gym, only to discover that the designated personnel for cancellations were frequently absent. This lawsuit, as stated by Chairman Ferguson, aims to improve consumers’ financial well-being by preventing them from incurring expenses on memberships they no longer desire.

Company’s Response and Defense

In response to the allegations, Jill Hill, President of Club Operations for Fitness International, issued a statement expressing confidence in the company’s legal position. She asserted that the company diligently complies with all state laws concerning membership cancellations and offers, at a minimum, every cancellation method specifically required by each state. Fitness International intends to vigorously defend its practices while striving to ensure its members receive clear, simple, and fair membership experiences. Memberships offered by these chains can cost up to $299 per month, with various optional add-on services available.

Broader Regulatory Context

This action is consistent with the FTC’s ongoing mandate to prevent unfair business practices, particularly those involving difficult-to-cancel subscriptions and recurring charges, a pattern the agency has targeted previously, as reported by Reuters. The current legal challenge against a major fitness industry player reflects the FTC’s continued commitment to consumer protection in the evolving landscape of subscription-based services.