The Federal Trade Commission (FTC) has filed a complaint in the Central District of California against Fitness International, LLC and Fitness & Sports Clubs, LLC (together, LA Fitness), alleging unfair and deceptive practices in violation of Section 5 of the FTC Act (Section 5) and Section 4 of the Restore Online Shoppers’ Confidence Act (ROSCA).
The complaint, filed August 20, 2025, contends that LA Fitness enrolls consumers in memberships and dozens of add-on services containing negative-option features, yet fails to provide clear, conspicuous disclosures or a simple way to cancel. According to the FTC, members must locate hidden cancellation forms on the company’s website, which must be printed and delivered to a single manager during limited weekday hours or sent by certified mail – procedures that the FTC characterizes as “opaque, complicated, and demanding.”
Significantly, the FTC is seeking a permanent injunction, monetary relief, and other remedies, relying heavily on ROSCA, which allows it to seek steep financial penalties of more than $50,000 per violation. The complaint also carries implications regarding the FTC’s vacated “click-to-cancel” rule.
Implications for recurring-billing programs
The FTC’s case against LA Fitness arrives not long after the Eighth Circuit vacated the FTC’s click-to-cancel rule, which would have mandated an online one-click mechanism to terminate negative-option subscriptions. While the rule’s demise created uncertainty about the Commission’s rulemaking reach, the LA Fitness lawsuit underscores that the FTC will continue to police subscription practices under its existing statutory toolkit. ROSCA expressly requires that online negative-option offers include clear material terms and “simple mechanisms” for cancellation; Section 5, likewise, prohibits unfair obstacles that cause consumers to incur charges they cannot reasonably avoid. By pairing both statutes, the Commission signals that companies operating recurring-billing programs should not view the absence of the click-to-cancel rule as a safe harbor.
Any business employing negative-option billing – whether for health clubs, software, streaming, or other services – is encouraged to review its enrollment flows, disclosures, and cancellation paths to ensure they are straightforward, prominently presented, and consistent across channels. Firms should be prepared for heightened FTC scrutiny, broad investigative authority, and the possibility of federal court litigation seeking injunctive and monetary relief even in the post click-to-cancel landscape.
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