Ticker: Feds hit LA Fitness over cancellation policy; Target CEO to step down

**FTC Sues LA Fitness Over Alleged Predatory Cancellation Practices; Target CEO Steps Down**

What’s Happening?

The Federal Trade Commission (FTC) has filed a lawsuit against LA Fitness for allegedly making it nearly impossible for customers to cancel memberships and related services, effectively trapping them in unwanted commitments. Meanwhile, Target’s CEO, Brian Cornell, has announced his retirement, marking the end of an era for the retail giant.

Where Is It Happening?

The FTC lawsuit involves LA Fitness clubs nationwide, impacting gym members across the country. Target’s leadership transition is a corporate decision affecting its headquarters in Minneapolis and its global operations.

When Did It Take Place?

The FTC lawsuit was filed on Wednesday, while Target’s CEO announced his retirement, effective immediately.

How Is It Unfolding?

• The FTC claims LA Fitness uses misleading tactics to discourage cancellations, such as requiring members to visit gyms in person during limited hours.
• The lawsuit seeks to halt LA Fitness’s alleged deceptive practices and require refunds for affected consumers.
• Target’s board will begin the search for a new CEO, with Cornwall Chair Gregg Steinnthal expected to serve as interim CEO.
• Analysts speculate that Target’s leadership change could signal a shift in strategic direction for the retailer.
• Both stories highlight consumer protection issues and high-profile corporate transitions in retail and fitness industries.

Quick Breakdown

• FTC accuses LA Fitness of making membership cancellations excessively difficult.
• Target’s CEO Brian Cornell announces sudden retirement.
• FTC seeks injunction and refunds for consumers affected by LA Fitness’s practices.
• Target’s interim CEO Gregg Steinnthal to oversee transition.

Key Takeaways

The FTC’s lawsuit against LA Fitness underscores growing concerns over deceptive practices in the fitness industry, particularly around membership cancellations. For consumers, this legal action could lead to better transparency and easier exit options. Simultaneously, Target’s CEO transition raises questions about the company’s future strategy and leadership. Both stories emphasize the need for accountability in corporate practices and adaptability in leadership, ensuring that consumer interests and corporate governance remain a top priority.

This lawsuit is a wake-up call for the fitness industry to adopt fairer cancellation policies or risk facing serious legal repercussions. Consumer trust is non-negotiable.

– Jane Cooper, Consumer Rights Advocate

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Final Thought

The FTC’s lawsuit against LA Fitness is a bold move to protect consumers from predatory business practices, while Target’s CEO transition signals a new chapter for the retail giant. Both developments highlight the volatile nature of corporate landscapes, where regulatory scrutiny and leadership shifts can redefine industry standards.

Source & Credit: https://www.bostonherald.com/2025/08/20/ticker-feds-hit-la-fitness-over-cancellation-policy-target-ceo-to-step-down/