The U.S. Federal Trade Commission (FTC) on Wednesday sued the operators of LA Fitness for allegedly making it “exceedingly difficult” for customers to cancel their memberships.
Fitness International and Fitness & Sports Clubs, which operate gym chains, including LA Fitness, Esporta Fitness, City Sports Club and Club Studio, have illegally charged hundreds of millions of dollars in recurring fees through difficult cancellation procedures, according to the complaint.
“Gym cancellations have been hard for Americans for a very long time,” Andrew N. Ferguson, chairman of the FTC, told FOX Business on ‘The Bottom Line’ Wednesday. “This has been going on so long that the show ‘Friends’ did an entire episode about how hard it is to cancel gym memberships.”
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Tens of thousands of LA Fitness members have alleged difficulties with canceling their memberships. Cancellation frequently required members to speak to specific managers who were often unavailable, and those who tried to cancel their memberships by mail also ran into challenges, according to the FTC.
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“What we have alleged in our complaint is that the method of cancellation LA Fitness is making available to consumers wasn’t simple,” Ferguson told Fox Business. “You had to mail in a form, or you had to go to a brick-and-mortar gym. … You had to then provide cancellation to a specific person, and that person often wasn’t there.
“That’s what this suit is about,” Ferguson said. “It’s about improving Americans’ lives in specific ways and saving them the money that they have to spend on memberships they don’t want anymore.”
The FTC is seeking money to be returned to affected consumers and a court order to bar the allegedly unfair practices.
“We remain confident that we will prevail in court,” Jill Hill, president of club operations for Fitness International, said in a statement.
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“Our company works diligently to comply with all health club state laws regarding membership cancellations and to offer, at a minimum, every cancellation method specifically required by each state. … We will continue to defend our practices vigorously while ensuring our members receive clear, simple and fair membership experiences.”
Fitness International and Fitness & Sports Clubs offer memberships that can cost as much as $299 a month, with optional add-on services available, according to the FTC.
The FTC, which works to prevent unfair business practices, has previously targeted difficult-to-cancel subscriptions and recurring fees, according to Reuters.
The FTC and Fitness International did not immediately respond to FOX Business’ request for comment.
