The Federal Trade Commission (FTC) has sued the operators of L.A. Fitness, alleging that their gym cancellation policies are “exceedingly difficult” to navigate. The lawsuit claims that the companies have charged hundreds of millions of dollars in unwanted recurring fees due to complex cancellation procedures.
Fitness International, which operates L.A. Fitness, Esporta Fitness, City Sports Club, and other gyms, has been accused of using restrictive and confusing cancellation methods, including an in-person process that is difficult to access. The FTC says the companies have not adequately disclosed how to cancel memberships during sign-up and have presented different requirements at various stages.
The lawsuit also claims that L.A. Fitness charges customers upfront fees for the first and last month of their membership, making it harder for them to cancel. The company has denied the allegations, saying they are “without merit” and that they comply with all relevant health club state laws regarding membership cancellations. However, the FTC says its complaint is a result of similar issues faced by many gym-goers who have reported difficulties in cancelling their memberships.
The lawsuit marks a significant move by the FTC to protect consumers from unfair business practices. The FTC has also stated that the companies’ actions are in direct conflict with its now-void “click-to-cancel” rule, which aimed to make it easier for consumers to cancel recurring subscriptions and memberships.
Source: https://www.cbsnews.com/news/la-fitness-operators-sued-gym-cancellation-policy