Fitness studio LA Fitness accused of crafting challenging procedures for terminating gym memberships, leading to FTC legal action
FTC Takes Action Against Gyms and Tech Giants Over Difficult Cancellation Policies
In a move to protect consumer rights, the U.S. Federal Trade Commission (FTC) has filed a lawsuit against the operators of gym chain LA Fitness and other gyms, as well as tech giants Uber and Amazon, for allegedly making it difficult for customers to cancel their subscriptions.
The gyms are accused of using complicated methods to cancel memberships, with specific managers often being unavailable. The FTC enforces federal consumer protection laws prohibiting unfair business practices, including those related to hard-to-cancel subscriptions and recurring charges.
The lawsuit, filed in California federal court, targets Fitness International and Fitness & Sports Clubs, which operate hundreds of gym locations. A spokesperson for Fitness International did not immediately respond to a request for comment.
In a statement, Christopher Mufarrige, head of the FTC's bureau of consumer protection, said, "The FTC will act on behalf of consumers when companies stifle their ability to cancel recurring charges."
The FTC is not relying solely on the struck-down rule to pursue cases against companies with difficult cancellation processes. The agency is currently pursuing cases using its existing authority, such as suing Uber in April for allegedly deceptive marketing of its Uber One subscription.
The FTC is also preparing for a trial in September to address accusations against Amazon for enrolling users in Prime without their knowledge and making it difficult to cancel the service. Both Uber and Amazon have denied wrongdoing in relation to the FTC's accusations.
Meanwhile, Planet Fitness PLNT.N, the largest gym brand in the U.S., has allowed members to cancel their memberships online this year. The information from the search results does not specify who sued LA Fitness or other fitness chains over difficulties canceling memberships.
The FTC's efforts to address hard-to-cancel subscriptions and recurring charges are not new. The rule requiring cancellation methods "at least as easy to use" as sign-up processes, passed during the Biden administration, was blocked by business groups in court earlier this year.
Despite the court ruling, the FTC will continue to take action against companies that stifle consumers' ability to cancel recurring charges. The agency's mission is to protect consumers and promote competition, ensuring that businesses play by the rules.
