FTC Enforcement of Cancellation Practices Continues After Click-to-Cancel Rule Defeated
Our Consumer Protection/FTC Team examines how the FTC continues to actively pursue companies with allegedly complicated cancellation practices by relying on existing legal authority despite setbacks to the Click-to-Cancel Rule. The FTC alleges that gyms used complex and misleading methods to hinder membership cancellations Consumers allegedly faced obstacles to cancellation in violation of Section 5 of the FTC Act and Restore Online Shoppers’ Confidence Act Even after the Click-to-Cancel Rule was struck down, the FTC can impose substantial penalties and remains committed to enforcing simple cancellation mechanisms for online services On August 20, 2025, the Federal Trade Commission (FTC) announced it had brought a complaint against Fitness International LLC and Fitness & Sports Clubs LLC, which operate LA Fitness and other national gym chains. The complaint, brought in the Northern District of California, alleges that the companies used unclear and complicat...