The Federal Trade Commission (FTC) has filed a lawsuit against LA Fitness and its related brands, including Esporta Fitness, City Sports Club, and Club Studio. The complaint accuses the companies of creating unnecessary hurdles for customers trying to cancel memberships, leading to frustration, unwanted fees, and damaged trust.
According to the FTC, the gyms required members to jump through multiple hoops just to end their agreement.
Examples include:
- Printing and mailing a form with certified postage
- Scheduling in-person cancellations only with specific staff
- Burying the online option so it was hard to find
The Commission alleges that these tactics cost consumers hundreds of millions of dollars in unwanted fees across more than 600 locations and 3.7 million members.
The lawsuit also highlights a broader issue facing all subscription-based businesses: transparency. If sign-up is simple, cancellation should be equally straightforward.
For leaders in the fitness industry, this situation serves as a wake-up call. Consumer trust is built not only on the services provided but also on how easy it is to leave when circumstances change.
Alan Jernigan emphasizes that this story isn’t just about one company. It’s about an industry where recurring revenue models are common and member retention strategies must be ethical.
Regulatory scrutiny is growing, and businesses that prioritize clarity and fairness will stand apart from those facing lawsuits.
For executives and fitness entrepreneurs, the lesson is clear: policies that frustrate customers are short-sighted. True growth comes from building loyalty, not trapping members. Companies that align convenience with accountability will strengthen both their reputation and long-term profitability.
Read the full story here: Reuters – FTC sues LA Fitness over cancellation policies
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