On August 20, 2025, the Federal Trade Commission (“FTC”) sued Fitness International, LLC and Fitness & Sports Club LLC – the parent companies of LA Fitness and other gym chains – for violations of Section 5 of the FTC Act and the Restore Online Shoppers’ Confidence Act (“ROSCA”) in connection with alleged practices that make it difficult for their customers to cancel their gym memberships and other add-on services. The FTC seeks a court order prohibiting the allegedly unfair and unlawful conduct and restitution to consumers harmed by the difficulty in cancelling memberships.
1. Cancellation Methods
The FTC alleges that Defendants use primarily two methods that make it difficult for consumers to cancel their memberships, in stark contrast to the apparent ease with which customers can purchase gym memberships. Specifically, the agency claims customers were required to print a cancellation form that was available only on a non-publicly accessible section of the gym’s website (that often-required login credentials and information customers lacked) and not through the mobile app that customers otherwise used to book classes and access Defendants’ fitness services. Customers then must either mail the form via certified or registered mail or submit the form in person to a specific employee and only during business hours, even though Defendants’ gyms are open up to 19 hours each day, seven days of the week and multiple employees are authorized to enroll consumers in memberships.
Defendants further allegedly offer various add-on amenities and services, such as childcare and towel service, through separate negative option programs. They allegedly failed to disclose to consumers that cancellation of these services required separate forms from those required to cancel their gym memberships or, in some instances, could be accomplished by speaking to any front desk attendant.
2. Insufficient Disclosures
The FTC alleged that Defendants failed to clearly and conspicuously disclose its in-person and mail cancellation methods before collecting consumers’ billing information when they purchased gym memberships.
3. Denial of Cancellation Requests Through Other Channels
The FTC alleges that Defendants routinely deny cancellation requests that are submitted by either telephone or by email, notwithstanding the fact that Defendants have deviated from these practices in those states that mandate certain methods for cancellation of gym memberships or when complaints are escalated to state attorneys general or the Better Business Bureau.
4. Billing Practices
The FTC alleges that, in some instances, Defendants continued to charge consumers via new payment methods after those consumers revoked their authorization for recurring charges to their bank account or credit card.
5. Post-Investigation Remedial Measures
The complaint cites Defendants’ implementation of an online cancellation method (and alleges it is a burdensome process that is not adequately disclosed during enrollment) during the FTC’s investigation as a basis, among others, for seeking injunctive relief.
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