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FTC Takes Legal Action Against Gym Chains Over Difficult Membership Cancellations

FTC Takes Legal Action Against Gym Chains
Madilyn Garcia
Written by Madilyn Garcia

The Federal Trade Commission (FTC) has filed a lawsuit against several major gym chains, including LA Fitness, over allegations that they make it excessively difficult for members to cancel their memberships. The companies named in the suit—Fitness International and Fitness & Sports Clubs also operate chains like Esporta Fitness, City Sports Club, and Club Studio. The complaint details a convoluted cancellation process, requiring members to log into a website, print a form, and either mail it or visit a physical location during limited hours.

According to the FTC, staff are trained to reject phone or email cancellations, and some members who attempt to stop payments are rebilled under new account numbers. The lawsuit highlights a growing concern over consumer rights and predatory auto-renewal practices in the fitness industry.

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Who’s Being Sued?

The FTC’s lawsuit targets Fitness International and Fitness & Sports Clubs, the operators behind gym chains like:

  • LA Fitness (over 600 locations nationwide)
  • Esporta Fitness
  • City Sports Club
  • Club Studio

The complaint, spanning 22 pages, details how these gyms have created a cumbersome cancellation process that traps customers in unwanted contracts.

The Problem: Complicated Cancellation Process

According to the FTC:

Online Confusion: Members must log in to the LA Fitness website and print a cancellation form. Many members use the LA Fitness app or QR code at signup, leaving them unaware of their website credentials. Notably, cancellations cannot be done through the app.

Identity Verification Hurdles: To recover login information, customers must provide:

  • The original email used for membership
  • The “key tag number” given at signup
  • The first five digits of their bank account or credit card

Limited Accessibility:

  • Cancellation forms are not publicly available; they require a login to access.
  • Forms must be printed, which can be inconvenient in 2025.
  • Forms must be mailed via registered or certified mail or delivered to a physical location.
  • Even when visiting a club, cancellations are only accepted 9 a.m. to 5 p.m., despite most gyms being open up to 19 hours a day.

    This maze of requirements has left many members stuck with unwanted memberships, often forcing them to take time off work just to cancel.

    Alleged Staff Practices

    The FTC also claims that LA Fitness staff have been trained to reject cancellation requests made via phone or email. Members who attempt to cancel by stopping bank or card payments may find themselves rebilled under new account numbers, which the FTC argues violates both the FTC Act and the Restore Online Shoppers’ Confidence Act (ROSCA).

    “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 FTC’s Bureau of Consumer Protection.

    He added that tens of thousands of LA Fitness customers have reported restricted cancellation windows or the need to speak with specific managers who were often unavailable.

    Broader Implications

    LA Fitness isn’t alone in creating difficult auto-renewal policies. Many digital subscriptions and memberships now use similar models, making it easy to continue charging consumers who forget or struggle to cancel. The FTC’s lawsuit signals a broader effort to protect consumers from unnecessarily complicated cancellation processes.

    LA Fitness Responds

    After the lawsuit, Fitness International issued a statement through Jill Hill, President of Club Operations:

    • The company believes the FTC’s claims are without merit.
    • They argue ROSCA was designed for online retail, not health clubs.
    • Despite the invalidation of the FTC’s ‘Click-to-Cancel’ rule, LA Fitness offers online cancellations proactively, along with in-person and mail options.
    • The company emphasizes its commitment to compliance with state laws and providing multiple cancellation methods.

    “Fitness International remains dedicated to providing accessible, high-quality fitness options while maintaining compliance with all applicable laws. We will continue to defend our practices vigorously while ensuring our members receive clear, simple, and fair membership experiences.”

    What This Means for Gym Members

    For anyone struggling with a gym membership, this lawsuit could bring meaningful changes to the way gyms handle cancellations. It highlights a growing tension between consumer convenience and business models reliant on recurring payments.

    As this case unfolds, it may set a precedent for how gyms and other subscription-based services design cancellation policies in the future.

    Frequently Asked Questions

    Which gyms are involved in the lawsuit?

    The FTC is suing Fitness International and Fitness & Sports Clubs, which operate LA Fitness, Esporta Fitness, City Sports Club, and Club Studio.

    Why is the FTC suing these gyms?

    The lawsuit claims the gyms make it too difficult to cancel memberships, requiring multiple steps like logging into a website, printing forms, and mailing them or visiting a club during limited hours. Staff allegedly reject phone and email cancellations, and some members are rebilled after trying to stop payments.

    How does the cancellation process work?

    Members must log in online, print a cancellation form, and either mail it via certified mail or submit it in person during 9 a.m.–5 p.m. hours.

    Can members cancel using the app?

    No, according to the FTC, the app does not allow cancellations.

    What laws does the FTC say are being violated?

    The lawsuit cites the FTC Act and the Restore Online Shoppers’ Confidence Act (ROSCA), which protects consumers from deceptive recurring billing practices.

    How has LA Fitness responded?

    LA Fitness says the allegations are without merit, noting they offer online, in-person, and mail cancellation options and comply with state laws.

    What could this mean for gym members?

    If the FTC wins, gyms may be required to simplify cancellations, potentially allowing easier online or app-based options and eliminating excessive hurdles for members.

    Conclusion

    The FTC’s lawsuit against LA Fitness and other gym chains shines a spotlight on the challenges many consumers face when trying to cancel unwanted memberships. The case underscores the importance of transparent, convenient cancellation processes and highlights the growing scrutiny on businesses that rely on complicated auto-renewal policies. For gym members, this legal action could lead to simpler, more consumer-friendly options for ending memberships without unnecessary hurdles.

    About the author

    Madilyn Garcia

    Madilyn Garcia

    Madilyn Garcia is the heart behind MoonValleyNews, dedicated to spreading positivity and uplifting stories. With a passion for journalism and community storytelling, she believes in the power of good news to inspire change. As the website's admin, she oversees content, collaborates with writers, and ensures that every story published reflects the mission of brighter news for a better tomorrow.

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