Fitness center LA Fitness under legal scrutiny for deliberately complicating gym membership termination processes
The U.S. Federal Trade Commission (FTC) has taken a stance against companies with hard-to-cancel subscriptions and recurring charges, filing a lawsuit against operators of gym chains and e-commerce giant Amazon.com on Wednesday.
In the lawsuit, filed in California federal court, the FTC accuses Amazon.com of enrolling users in its Prime service without their knowledge and making it difficult for them to cancel. The FTC is also targeting gym chains, such as LA Fitness, Esporta Fitness, City Sports Club, and Club Studio, which are operated by Fitness International and Fitness & Sports Clubs.
The FTC claims that these companies have made it difficult for members to cancel their memberships, forcing them to use complicated methods such as speaking to specific managers who are often unavailable. The FTC's lawsuit against the gym chains follows its ongoing efforts to enforce federal consumer protection laws prohibiting unfair business practices.
The FTC is not requiring cancellation methods to be 'at least as easy to use' as the sign-up process due to a court ruling earlier this year. However, the FTC continues to act on behalf of consumers when companies stifle their ability to cancel recurring charges.
In a statement, Christopher Mufarrige, head of the FTC's bureau of consumer protection, said, 'The FTC will act on behalf of consumers when companies stifle their ability to cancel recurring charges.'
Both Uber and Amazon.com have denied wrongdoing in their respective cases. Uber was sued by the FTC in April for allegedly deceptive marketing of its Uber One subscription. Amazon.com is facing a trial in September to accuse the company of enrolling users in Prime without their knowledge and making it difficult to cancel the service.
Planet Fitness, the largest gym brand in the U.S., allows members to cancel their memberships online despite the rule being struck down in court. The operator of the chain, Chris Rondeau, has not responded to requests for comment regarding the lawsuit.
No immediate response was given by a spokesperson for Fitness International regarding the lawsuit against the gym chains. The FTC is pursuing cases using the authority it already has, as demonstrated by its lawsuit against Uber and its ongoing case against Amazon.com.
The FTC's efforts to protect consumers from hard-to-cancel subscriptions and recurring charges are part of a broader trend towards increased scrutiny of business practices that are perceived as unfair or deceptive. As technology continues to evolve and new business models emerge, the FTC will likely continue to play a crucial role in ensuring that consumers are protected and treated fairly.
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