The Federal Trade Commission (FTC) has launched an investigation into the operators of LA Fitness and Esporta Fitness, alleging violations of consumer protection laws. At the center of the probe are complaints about deliberately difficult
subscription cancellation processes that have frustrated customers attempting to end their gym memberships.
According to the FTC, the fitness chains have implemented systems that make terminating memberships unnecessarily complicated, potentially trapping consumers in unwanted contracts and continuing to charge them after cancellation attempts.
Alleged Cancellation Barriers
The FTC investigation focuses on multiple obstacles reportedly placed in the path of members trying to cancel their subscriptions. Customers have reported being required to cancel in person despite signing up online, facing long wait times on customer service lines, and encountering resistance from staff when attempting to process cancellations.
One former member told investigators: “I tried canceling online, by phone, and finally had to drive 45 minutes to my gym location, only to be told I needed to speak with a specific manager who wasn’t available.”
The fitness chains’ practices allegedly include:
- Requiring in-person cancellations regardless of how memberships were initiated
- Implementing complex cancellation procedures not clearly disclosed at signup
- Continuing to charge monthly fees despite receiving cancellation requests
Consumer Protection Concerns
The FTC’s action comes amid increased scrutiny of subscription-based businesses across various industries. The agency has been working to enforce regulations that protect consumers from deceptive practices in recurring billing models.
“Companies cannot design their cancellation processes to be so difficult that consumers give up and continue paying for services they no longer want,” said an FTC representative familiar with the investigation.
The regulatory body is examining whether the gym operators violated the
Restore Online Shoppers’ Confidence Act, which requires businesses to provide simple mechanisms for canceling recurring charges.
Industry-Wide Implications
This case may signal broader regulatory attention to the fitness industry, where subscription models have become standard practice. Many gyms rely on recurring membership fees and low cancellation rates for their business models.
Consumer advocates have praised the FTC’s action, noting that difficult cancellation processes disproportionately affect people with limited time, transportation, or resources to navigate complex termination requirements.
“This investigation sends a clear message that businesses must make cancellation as straightforward as signup,” said a consumer rights attorney tracking the case.
Potential Outcomes
If the FTC finds violations, LA Fitness and Esporta Fitness operators could face substantial financial penalties and be required to implement new cancellation policies. The commission typically seeks refunds for affected consumers and may impose requirements for clearer disclosure of cancellation procedures.
Similar cases have resulted in settlements requiring businesses to implement one-click cancellation options and provide prorated refunds to customers who attempted to cancel but were unsuccessful.
The fitness chains have not yet issued public statements regarding the investigation. Industry analysts note that any required changes to cancellation policies could impact revenue projections for these and other fitness businesses using similar practices.
The FTC’s action reflects growing regulatory interest in subscription-based business models across sectors, from fitness and streaming services to food delivery and software. Businesses using recurring billing models may need to review their cancellation procedures to ensure compliance with consumer protection standards.
