NYC cracks down on 187 gyms for shady cancellation policies and sneaky fees

City puts gyms on notice across five boroughs

New York City just fired a shot at gyms that make it hard to cancel memberships.

Mayor Zohran Kwame Mamdani and the Department of Consumer and Worker Protection (DCWP) sent warning notices to 187 gyms and health clubs starting Feb. 19.

The list includes big names like PureGym, Planet Fitness, and Equinox.

The letters tell these businesses to follow state cancellation laws and the city’s Consumer Protection law, or face consequences.

Complaints reveal sneaky cancellation tactics

The city says some gyms use tricks to keep members locked in. A few advertise memberships that look free but hit customers with surprise fees after they sign up.

Others pile on confusing steps and paperwork when someone tries to cancel. DCWP received dozens of complaints in 2025 from people who struggled to end their gym memberships.

The city’s Consumer Protection law already bans deceptive advertising and bait-and-switch pricing, so these gyms may already be breaking the rules.

Mamdani signed executive orders in January

This crackdown didn’t come out of nowhere. On Jan. 5, Mamdani signed two executive orders aimed at hidden fees and subscription traps.

Executive Order 9 created a Citywide Junk Fee Task Force, co-chaired by the Deputy Mayor of Economic Justice and the DCWP Commissioner.

Executive Order 10 told DCWP to monitor, investigate, and enforce violations tied to subscription tricks. The gym warnings mark the first big enforcement action under those orders.

DCWP commissioner brings federal muscle

DCWP Commissioner Sam Levine isn’t new to this fight.

He served as Director of the Federal Trade Commission’s Bureau of Consumer Protection from 2021 to 2025, where he led work on junk fees, subscription traps, and consumer data protections.

Former FTC Chair Lina Khan also co-chaired Mamdani’s mayoral transition team.

Levine warned that DCWP will take aggressive enforcement action against gyms that use deceptive tactics to trap members.

State law already requires easier cancellations

New York State tightened the rules before the city even stepped in.

A state law took effect on Feb. 1, 2025, requiring gyms to process cancellations within 10 business days. Gyms must accept cancellations through their website, email, phone, mail, or in person.

Members can also cancel contracts without penalty within three days of signing. Gov. Kathy Hochul signed the law as part of a broader consumer protection package.

Attorney General hit Equinox with penalties

The state has already gone after one of the biggest names on the list.

In May 2025, New York Attorney General Letitia James reached a $600,000 settlement with Equinox Group. Her office found Equinox failed to clearly explain subscription terms and didn’t offer easy online cancellation.

The settlement covered Equinox gyms, SoulCycle studios, and Equinox+ online classes. Equinox had to change its cancellation practices and offer refunds to affected members.

New state law expands the AG’s power

Gov. Hochul signed the FAIR Business Practices Act on Dec. 19, 2025, and it took effect on Feb. 17. The law updates New York’s core consumer protection law for the first time in 45 years.

It expands the Attorney General’s authority to challenge unfair and abusive business practices, not just deceptive ones. AG James pointed to hard-to-cancel subscriptions as one example of practices the new law targets.

The federal cancellation rule got thrown out

There’s a reason cities and states are handling this themselves.

The FTC finalized a click-to-cancel rule in October 2024 that would have required businesses to make canceling as easy as signing up.

But in July 2025, the U.S. Court of Appeals for the Eighth Circuit threw the rule out on procedural grounds. The court said the FTC skipped a required economic analysis.

That left states and cities to enforce their own protections.

New York fills the gap on its own

With no federal rule in place, New York is building its own system.

The city uses DCWP to enforce local consumer protection laws, while the Attorney General’s office handles state-level cases.

The FAIR Business Practices Act gives the AG new tools that mirror some of the protections the FTC rule would have provided.

Commissioner Levine has said DCWP will use existing city laws aggressively rather than wait for new federal action.

Members can file complaints with DCWP

If you’re a New Yorker stuck in a gym membership you can’t cancel, DCWP wants to hear from you. Consumers can file complaints online, by mail, or by phone.

DCWP typically starts by trying to mediate disputes between customers and businesses.

If that doesn’t work and DCWP finds violations, the agency can pursue formal enforcement, including penalties and refunds to members.

Named gyms have stayed quiet so far

As of publication, none of the 187 gyms named in the warning notices has responded publicly. News outlets that reached out to Equinox, PureGym, and other chains reported they hadn’t heard back.

A look at major gym websites showed a general lack of transparency around cancellation policies.

Planet Fitness had the most accessible cancellation information, though members still had to click through multiple tabs to find it.

Other cities could follow New York’s lead

Hard-to-cancel gym memberships aren’t just a New York problem. People across the country deal with the same frustrations.

But without a federal click-to-cancel rule, protections vary widely from state to state.

New York’s approach, combining city enforcement with stronger state laws, could serve as a model for other places facing the same complaints.

For now, consumers anywhere should review their gym’s cancellation terms and check their own state’s consumer protection laws.

This article was created with AI assistance and human editing.

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