Key Metrics
14.23
Heat Index-
Impact LevelMedium
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Scope LevelNational
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Last Update2025-08-22
Key Impacts
Positive Impacts (1)
Negative Impacts (3)
Event Overview
Regulatory scrutiny intensifies as consumer protection authorities challenge business practices deemed obstructive or deceptive. Legal action targeting alleged barriers to contract termination highlights evolving standards for corporate transparency, customer autonomy, and fair dealing. The case underscores growing pressure on large enterprises to ensure accessible and straightforward consumer processes, with potential implications for industry-wide compliance and market reputation.
Collect Records
FTC Sues LA Fitness Operators Over Gym Membership Cancellation Policies
On Wednesday, the Federal Trade Commission (FTC) filed a lawsuit in California federal court against Fitness International and Fitness Sports Clubs, the operators of gym chains including LA Fitness, Esporta Fitness, City Sports Club, and City Studio. According to the FTC, the companies, which collectively operate more than 600 gym locations and have over 3.7 million members nationwide, allegedly implemented "exceedingly difficult" and complicated procedures that hinder customers from canceling their gym memberships, resulting in the illegal charging of hundreds of millions of dollars in unwanted recurring fees. Memberships range from $30 to $299 per month, requiring upfront payment of the first and last month and subsequent monthly and annual fees. The FTC complaint describes the cancellation options—such as in-person and mail-in processes—as restrictive, opaque, and confusing, with contradictory requirements presented at sign-up, in membership agreements, and on company websites. Fitness International responded in a statement, claiming the allegations are without merit and stating that the company offers online, in-person, and mail-in cancellation options and complies with state health club laws regarding membership cancellations.