Why is LA Fitness being sued? FTC lawsuit against popular gym explained

Operators of LA Fitness, a popular gym chain, are being sued as per a press release issued by the Federal Trade Commission (FTC) on August 20.

As per the press release, FTC is pursuing its case against the gym chain based on a complaint that accuses LA Fitness of making it difficult for its customers to cancel their gym membership.

The Director of the Bureau of Consumer Protection, Christopher Mufarrige, issued a statement with regard to the complaint. He said:

“The FTC’s complaint describes a scenario that too many Americans have experienced – a gym membership that seems impossible to cancel…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.”

Continuing, Mufarrige added:

“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.”

FTC, in its press release, also identified the operators of LA Fitness. According to the press release, LA Fitness is operated by two companies, which are Fitness International, LLC and Fitness & Sports Clubs, LLC.

All about FTC’s lawsuit against LA Fitness

According to the FTC’s complaint filed in the U.S. District Court for the Central District of California, LA Fitness made the cancellation process of memberships complex, because of which the gym chain’s members have found it difficult to unsubscribe from the services. The difficult process of unsubscribing from membership resulted in a situation where members have had to pay for services they do not wish to continue. FTC also stated that it would be pursuing the case so that the court can order the fitness company to cease its alleged unfair practices, and in order to ensure that consumers are compensated for their money.

While giving details about the complicated cancellation process, FTC shared that LA Fitness does not allow its members to cancel their membership online. The cancellation process, according to FTC, requires LA Fitness members to send their cancellation request via mail or in person.

In its complaint, FTC has also alleged that LA Fitness has further led to the complication of the cancellation process for its members by restricting the number of employees who can pursue the cancellation. According to FTC, only a “specific employee” can cancel the memberships, thus restricting the number of hours during which the process can be initiated by a customer.

FTC also highlighted a serious discrepancy according to which there is a huge difference between the number of employees who can sign customers up and the number of employees who can initiate the cancellation process.

FTC also shared its rationale behind going ahead with the proceedings, which it believes are in the general interest of the public. It stated that the FTC pursues complaints when it finds “reason to believe that a particular defendant is violating the law or may do so in the future.”

As per FTC, Fitness International, LLC and Fitness & Sports Clubs, LLC, run numerous gym chains across the country. Apart from LA Fitness, the two parent companies of LA Fitness operate the Esporta Fitness, City Sports Club, and Club Studio.

According to FTC, the two companies hold a significant market share with a sizable customer base, which, according to FTC, accounts for more than 3.7 million members across 600 locations in the US.

FTC, in its media statement, reiterated the general objectives in accordance with which the commission aims to pursue its actions. According to FTC, the commission “works to promote competition and protect and educate consumers.”