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FTC Sues LA Fitness Operator Over Alleged Barriers to Membership Cancellation

The case marks a shift to courtroom enforcement after a federal appeals court blocked the FTC's click-to-cancel rule.

People walk past an LA Fitness gym in Atlanta, Georgia, U.S., April 21, 2020. REUTERS/Elijah Nouvelage/File Photo
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© Shutterstock / BongkarnGraphic

Overview

  • Filed in the Central District of California, the complaint targets Fitness International and Fitness & Sports Clubs, which operate LA Fitness, Esporta Fitness, City Sports Club and Club Studio.
  • The FTC alleges consumers were forced to cancel in person or by mail using a printed web form, with hurdles such as credential resets, certified or registered mail, limited cancellation hours and designated staff availability.
  • The agency says tens of thousands of customers reported problems and alleges the policies led to hundreds of millions of dollars in unwanted recurring fees.
  • Regulators cite violations of the FTC Act and the Restore Online Shoppers’ Confidence Act and are seeking a court order to halt the practices and secure refunds.
  • The FTC says online options are limited or buried and app cancellations are unavailable, while the company asserts compliance with state laws, offers online cancellation and vows to defend its practices.