FTC Launches Major Legal Action
The Federal Trade Commission filed a lawsuit on August 20, 2025, against Fitness International, LLC and Fitness & Sports Clubs, LLC, the operators of LA Fitness and related brands including Esporta Fitness, City Sports Club, and Club Studio. The agency argues that the company made it deliberately difficult for members to cancel their gym memberships, raking in hundreds of millions of dollars in unwanted recurring charges. The case was filed in federal court in California.
Allegations of Burdensome Cancellation Policies
The FTC accuses LA Fitness of building a system designed to frustrate consumers out of leaving. Members often had to log into the company’s website using an email, membership key tag number, and partial payment details—credentials many did not have readily available. Even when logged in, cancellation required printing a form and mailing it, with instructions suggesting registered or certified mail. Other options forced members to show up in person during restricted hours, and only specific employees could process the request. According to the FTC, this structure violated the FTC Act and the Restore Online Shoppers’ Confidence Act (ROSCA).
Lack of Transparency
Federal regulators say LA Fitness failed to adequately disclose cancellation terms at sign-up, leaving many members unaware of the hurdles until they tried to quit. Conflicting information across contracts, staff instructions, and the company’s website created additional confusion. The FTC also notes that mobile app cancellation was unavailable, while online tools were buried and hard to access.
Widespread Impact Across the U.S.
The lawsuit highlights that Fitness International operates more than 600 gym locations nationwide, serving over 3.7 million members. With the company’s scale, the FTC believes the cancellation barriers have collectively cost consumers hundreds of millions of dollars. Officials framed the lawsuit as part of a broader effort to crack down on subscription services that rely on “roach motel” practices—easy to enter, nearly impossible to leave.
Company Denies Allegations
In a statement, LA Fitness rejected the charges as “without merit.” The company emphasized that it had introduced an online cancellation option 18 months before the FTC’s blocked “click-to-cancel” rule was due to take effect. Fitness International argues that its current cancellation channels, including in-person and mail-in methods, already comply with state laws. The company said it intends to defend itself vigorously in court.
What Comes Next
The FTC is seeking a court order to force LA Fitness to simplify its cancellation process, monetary restitution for consumers, and a permanent injunction against similar practices in the future. If successful, the case could reshape industry standards not just for gyms but also for subscription-based businesses in streaming, e-commerce, and beyond.
Why It Matters
The case against LA Fitness underscores the growing scrutiny on companies that use fine print and roadblocks to lock in customers. Regulators argue that canceling a recurring service should be as straightforward as signing up. For millions of consumers, the outcome of this lawsuit could determine whether corporate America continues exploiting subscription traps or is forced into a new era of transparency and fairness.
