As U.S. gyms come under scrutiny over their cancellation practices and membership fees, the U.K.’s business watchdog is taking similar action across the pond
Gold’s Gym UK is under investigation by the Competition and Markets Authority (CMA), the United Kingdom’s governing regulator for fair competition, anti-competitive behavior, mergers and protecting consumers from unjust business practices.
The CMA suspects the fitness operator of infringing consumer protection over its potential misleading presentation of mandatory fees, specifically whether additional fees are included in the total price the consumer sees when first buying a membership.
Specifically, the CMA is concerned with a joiner’s fee introduced during the sign-up process and not included in upfront advertised membership costs.
“At a time when household budgets are under constant pressure and we’re all hunting for the best deal possible, it’s crucial that people are able to shop online with confidence, knowing that the price they see is the price they’ll pay, and any sales are genuine,” said chief executive of the CMA, Sarah Cardell.
Consumers have shown operators that steep fees can be a major deterrent to purchasing, and keeping, a membership. A 2024 poll by YouGov found that cost was the most common reason why people canceled their membership.
Just because Gold’s Gym UK, which has four locations in London and Essex, is under investigation, the CMA points out, it does not automatically mean the operator has infringed consumer protection law. If the CMA finds it did infringe the law, the governing body can order the company to offer payouts to affected customers, as well as a fine equivalent to up to 10% of their global turnover.
U.S. gyms are under similar scrutiny for burdensome cancellation practices. Earlier this year, LA Fitness was sued by the Federal Trade Commission for allegedly making its gym memberships too difficult to cancel.
The suit came after a federal appeals court struck down the controversial “click-to-cancel” rule that would have required many businesses, including gyms, to make it as easy for consumers to cancel subscriptions like gym memberships as it was to sign up for them.
