Association Files Lawsuits against Fitness Centers for Obstructing Membership Cancellation Processes
FTC Files Lawsuit Against Fitness International and Fitness & Sports Clubs Over Cumbersome Cancellation Policies
The Federal Trade Commission (FTC) has taken action against Fitness International and Fitness & Sports Clubs, operators of several gym chains, including LA Fitness. The FTC alleges that these companies have created a complicated process for consumers to cancel their memberships, which violates the FTC Act and the Restore Online Shoppers' Confidence Act (ROSCA).
According to the FTC's 22-page complaint, LA Fitness trains its staff to reject cancellation requests by phone or email, and there is no way to cancel through the app. Customers are required to log in to the gym's website and print off a cancellation form, which is not publicly available on the company's website.
The cancellation form must be mailed or brought to a physical location, where cancellations are only accepted between 9 a.m. and 5 p.m., and only on weekdays. Many users may not know their login information for the website because they were encouraged to use the LA Fitness app and a QR code at sign-up.
The FTC alleges that this practice stifles consumers' ability to choose which recurring charges they want to keep. The lawsuit also indicates that LA Fitness is not the only business that thrives on cumbersome auto-renewal policies. Many digital subscriptions have auto-renewal policies that consumers often fail to cancel before being charged again.
The FTC's press release states that customers who don't know how to log in with their credentials must provide their original email address, "key tag number," and the first five digits of their bank account or credit card number to access the cancellation form.
As of Wednesday, Fitness International, the operator of LA Fitness, did not immediately respond to questions emailed by Gizmodo. The FTC will update the post when they hear back from Fitness International.
The FTC's complaint describes a scenario where cancellation is often restricted to specific times or requires speaking to specific managers. The search results do not contain information about other organizations besides LA Fitness that have been charged by the FTC nor the gym chains operated by those companies.
The FTC has taken notice of this business model and its impact on consumers. The lawsuit against Fitness International and Fitness & Sports Clubs is a step towards ensuring that consumers have the right to easily cancel their recurring charges and maintain control over their finances.
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