Penalty Amount
$17,000,000
Consumer fraud enforcement action where the FTC settled with Xponential Fitness for violating the Franchise Rule by misrepresenting key information to franchisees, including time to open and costs. The settlement includes a $17 million monetary judgment for redress and prohibits future misrepresentations.
Xponential Fitness must pay $17 million in redress to franchisees, is prohibited from making misrepresentations to prospective franchisees, and must comply with the Franchise Rule by providing accurate and timely disclosure documents.
In-house legal teams at franchisors should review franchise agreement templates, Franchise Disclosure Document (FDD) preparation workflows, and vendor contracts with franchise marketing or sales platforms. Key clauses to audit include FDD delivery timelines (mandating at least 14 days between FDD receipt and agreement signing), representations regarding average studio opening timelines, disclosure clauses for executive litigation and bankruptcy history, and requirements to report terminated, cancelled, or non-renewed franchises with accurate contact information. Franchisee-facing agreements should also be reviewed for misrepresentations regarding costs, fees, and operational timelines to avoid deceptive practice allegations.
Entity
Xponential Fitness
Industry
OtherOfficial Press Release
https://www.ftc.gov/news-events/news/press-releases/2026/03/ftc-secures-settlement-against-xponential-fitness-franchise-rule-violations
XPO StipOrder
https://www.ftc.gov/system/files/ftc_gov/pdf/XPO-StipOrder.pdf
XPO Complaint
https://www.ftc.gov/system/files/ftc_gov/pdf/XPO-Complaint.pdf
Federal Trade Commission Enforcement Page
https://www.ftc.gov/enforcement
"Xponential Fitness"
"$17 million"
"Franchise Rule"
"Failed to provide accurate, complete, and timely Franchise Disclosure Documents"
$750K
The FTC finalized an order against Vanilla Chip LLC (doing business as TruHeight) and its principals for deceptively advertising height-enhancing supplements for children and teens without scientific evidence. The company also used fake reviews and incentivized 5-star ratings. The order requires a $750,000 payment and prohibits false health claims and deceptive review practices.
$2.3M
The FTC alleged that RentGrow, a tenant screening company, violated the Fair Credit Reporting Act (FCRA) by failing to use reasonable procedures to ensure the accuracy of its reports, including by reporting duplicate records and failing to disclose data sources. RentGrow agreed to pay a $2.25 million penalty and is prohibited from further FCRA violations and from misrepresenting dispute outcomes.
The FTC and New York Attorney General took action against Handy Technologies for deceptive earnings claims and failure to disclose fees and fines that led to millions of dollars being withheld from workers' wages. The FTC is sending over $2.7 million in refunds to 62,893 affected consumers.
$35.0M
The FTC alleged that Hopper, a travel booking app, charged consumers hidden and pre-selected fees (Tip and VIP Support) without their consent, misrepresented the benefits of VIP Support and Price Freeze services, and failed to clearly disclose total prices. Hopper agreed to pay $35 million for consumer redress and is prohibited from misrepresenting fees under a proposed order.
$1.5M
The FTC finalized a settlement with Publishing.com LLC and its principals for misleading consumers about potential earnings from self-publishing products. The company will pay $1.5 million and is prohibited from making unsubstantiated earnings claims, failing to disclose refund terms, and misrepresenting endorsements and reviews.
The FTC is seeking public comment on a proposed policy statement addressing concerns that AI companies may be manipulating AI system outputs contrary to consumer expectations for objectivity and accuracy. The statement explains that such conduct could be considered deceptive under Section 5 of the FTC Act. The public comment period runs until July 31, 2026.