The U.S. Federal Trade Commission (FTC) has announced a new rule that will impact how fitness centers handle membership cancellations. Called the “Click-to-Cancel” Rule, this regulation is designed to make canceling a gym membership as simple as signing up—with no extra hurdles, no phone calls, and no in-person visits required.
It is a part of FTC’s broader efforts to protect consumers from unfair or deceptive business practices. This rule is expected to take effect in May 2025, and if your gym offers memberships on a recurring basis—whether monthly or annually—it will apply to you. That means your cancellation process must be clear, accessible, and as effortless as the signup process.
For many gyms—especially those that already make it easy for members to cancel—this rule won’t require big changes. But if your cancellation process has a few extra steps, now’s a great time to take a fresh look and make sure everything is as simple and straightforward as possible.
In this blog, we break down everything you need to know about the rule and how your gym can navigate these changes smoothly.
What Does the FTC’s Click-to-Cancel Rule Require?
At its core, the FTC’s new rule is about simplicity and fairness. Here’s what gym owners need to be aware of:
If Members Can Sign Up Online, They Must Be Able to Cancel Online
Many gyms allow new members to join in just a few clicks through their website or app. The FTC now requires that cancellation must be just as quick and accessible.
If someone joins your gym online, they must be able to cancel online—without needing to call, email, or visit in person. Likewise, if they signed up in person, they should be able to cancel remotely, either online or over the phone. This means no lengthy forms, no extra steps, and no requiring members to speak to a rep before finalizing their cancellation.
This gives your members more flexibility and saves them an unnecessary trip—something they’ll appreciate. And when members feel like your gym operates with fairness and transparency, they’re more likely to return in the future or recommend your business to others.
Clear and Conspicuous Disclosure of Membership Terms
If a gym offers members an alternative to cancellation—like a pause option or a reduced-rate membership—the member must explicitly agree before any changes are made. Gyms also must provide unavoidable, upfront information about key membership terms, including:
- Recurring Charges – Gyms must state how much members will be charged, how often, and when price changes will take effect.
- Cancellation Deadlines – If a member needs to cancel by a specific date to avoid the next charge, this deadline must be clearly communicated.
- How to Cancel – The exact steps to cancel must be laid out in a way that is easy to find and understand.
- Any Other Material Terms – Any other important details that affect a member’s contract must be made clear before they sign up.
Reminder Notices for Automatic Renewals
If your gym offers annual memberships that automatically renew, you will now be required to send members a reminder before their renewal date.
This ensures that members aren’t caught off guard by unexpected charges and have enough time to decide if they want to continue their membership. While this may seem like an extra step, it can actually build trust with your members and help reduce disputes over renewals.
You Can Offer Retention Options, But They Can’t Be Required
Of course, you still have the right to offer membership freezes, discounts, or alternative plans—but under the new rule, members must have the option to immediately decline and proceed with their cancellation.
That means you can’t require members to listen to a sales pitch, meet with a manager, or go through multiple prompts before canceling. If they say they want to cancel, they should be able to do so without extra hurdles.
What Happens If You Don’t Comply?
Non-compliance with these new rules could lead to FTC enforcement actions, fines, and legal consequences. The FTC has made it clear that businesses that make cancellation unnecessarily difficult will face penalties.
Beyond legal risks, failing to comply can also damage your gym’s reputation. If members struggle to cancel and feel trapped in their contracts, it can lead to negative reviews, complaints, and a loss of trust. On the other hand, making cancellations easy can actually improve customer satisfaction and increase the likelihood that former members will return in the future.
What This Means for Gym & Fitness Studio Owners in the U.S.?
For fitness operators, this rule means it’s time to review membership policies and ensure your cancellation process aligns with the new requirements.
Here’s what you should focus on:
1. Update Your Membership Cancellation Process
As mentioned above, the biggest shift for gyms will be ensuring that members who signed up online can also cancel online—without unnecessary steps.
What Needs to Change?
- If you currently require members to call, email, or visit in person to cancel their membership, you will need to update your system.
- Cancellation should be clear, accessible, and as easy as clicking a button.
Next Steps:
- Review your current sign-up and cancellation processes.
- Make sure you offer an online cancellation option for members who signed up online.
- Work with your fitness management software provider to ensure compliance.
2. Review How You Communicate Renewal Terms
The new rule also requires that members clearly understand their renewal terms before being charged.
What Needs to Change?
- Before automatically renewing a membership, you need to clearly present renewal terms and get explicit member consent.
- If you offer trial memberships, ensure the transition to a paid plan is clearly explained and easily accessible.
Next Steps:
- Audit your membership contracts and renewal policies.
- Ensure your sign-up flow clearly states billing terms and automatic renewals.
- Use automated reminders on your gym app to notify members before their renewal.
3. Train Your Team on the New Rules
Your staff needs to be prepared for these changes, especially if members ask about cancellation or billing.
What Needs to Change?
- Front desk teams, sales reps, and member support staff should be fully aware of the new cancellation and renewal policies.
- If a member asks how to cancel, the answer should be clear, honest, and straightforward.
Next Steps:
- Host a training session to educate your team on the new rule.
- Update your cancellation policy FAQ on your website.
- Ensure your software and team are aligned on making the process smooth and compliant.
At first glance, the FTC Click-to-Cancel rule might seem like just another regulation to deal with. But in reality, this is a shift that benefits both gyms and their members. The best fitness businesses will recognize this as an opportunity—not a challenge. Making cancellations easy doesn’t mean you’ll lose members. In fact, it can help build long-term trust, reduce negative experiences, and even improve retention.
Final Thoughts
At the end of the day, making cancellations easy is nothing but a chance to build deeper trust with your members. And while you can’t stop every cancellation, you can create an experience that makes people want to stay.
That’s where having the right tools matters. With SHC, you can deliver a seamless, engaging, and personalized member experience—from easy class bookings to better omnichannel communication—so that members feel connected to your gym and less likely to leave in the first place.If you’re interested in learning more, let’s talk. Book a discovery call today, and let us help you build a member experience that keeps people coming back.
