The Federal Trade Commission announced that it has filed a lawsuit against the parent company LA Fitness following allegations that the chain of gyms makes it difficult for customer to cancel their memberships.
In its complaint filed with the U.S. Distrcit Court of Central California, the Federal Trade Commission claims that LA Fitness's cancellation methods are "opaque, complicated, demanding–far from simple. The government's complaint also says that LA Fitness has "not adequately disclosed how to cancel when consumers are signing up for their memberships," and has "presented different, often contradictory, cancellation requirements during sign up, in membership agreements, and on the Defendants’ websites."
The lawsuit was filed against Fitness International, LLC, the parent company of LA Fitness.
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The lawsuit claims that LA Fitness instructed customers to log into the gym's website through a "cumbersome" process, and print a document to return to the gym. The FTC then says that customers would be required to present the document during limited hours and to a specific manager who was authorized to process the forms.
The FTC says that if customers were unable to reach the manager, they would be forced to return at a later time to process the cancellation.
The lawsuit says that customers could also print and send the same form through the mail, but would be required to use certified or registered mail, which comes at an additional cost than standard mail.
“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 Bureau of Consumer Protection. “Tens of thousands of LA Fitness customers reported difficulties – cancellation was often restricted to specific times or required speaking to specific managers who were often not present or available. The FTC will not hesitate to act on behalf of consumers when it believes companies are stifling consumers’ ability to choose which recurring charges they want to keep.”
The FTC says these allegations violate the FTC Act and the Restore Online Shoppers’ Confidence Act.
"We are disappointed that the FTC has chosen to pursue this complaint. The allegations are without merit, and the statute the FTC relies upon – the Restore Online Shoppers’ Confidence Act (ROSCA), enacted almost 15 years ago – was designed to address only online retail transactions, does not require any specific method of cancellation, and has never before been applied to the health club industry. We remain confident that we will prevail in court," Fitness International, LLC said in response to the suit.
"It is important to note that most of our memberships, and all of our personal training memberships, are purchased in person at our club locations. Even so, 18 months before the FTC’s new ‘Click-to-Cancel’ rule was scheduled to take effect, we proactively launched an online cancellation option for all members, regardless of how they originally signed up. With just a few clicks, members may cancel online – a step we voluntarily implemented well ahead of regulatory deadlines. Although a federal court of appeals recently invalidated the FTC’s ‘Click-to-Cancel’ rule, we have chosen to keep our online cancellation program in place to provide members with yet another simple way to cancel. Members also have always had the option to cancel in person at any club, or by mail, and those who wish to do so can and do cancel in such fashion."
