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FTC sues fitness chain for making gym memberships hard to cancel through restrictive processes, opaque policies, and rebilling tactics that violate consumer protection laws

August 22, 2025 //  by Finnovate

The Federal Trade Commission sued the operators of LA Fitness and other gyms over allegations they make it exceedingly difficult for consumers to cancel their gym memberships and related services that continued indefinitely unless cancelled. The agency is seeking a court order prohibiting the allegedly unfair conduct and money back for consumers harmed by the difficulty in cancelling memberships. “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.” According to the Commission’s complaint, LA Fitness uses opaque and complicated methods to make it extremely difficult for consumers to cancel their memberships. In addition, LA Fitness has failed to clearly inform consumers that they can cancel add-on amenities and services individually, without affecting their gym membership, according to the complaint. For example, it failed to disclose that such services could be cancelled by virtually any gym employee. Finally, instead of simplifying the cancellation process in response to consumer complaints, LA Fitness has trained staff to reject escalated requests and to deny cancellations requested by phone or email, reiterating that all cancellations must be done in person with one specific employee or by mail. Consumers who try to cancel their memberships by stopping charges to their bank or credit card find they are rebilled, often under new account numbers. The FTC alleges such practices violate the FTC Act and the Restore Online Shoppers’ Confidence Act (ROSCA).

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Category: Channels, Innovation Topics

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