For fitness operators, navigating regulatory changes can feel overwhelming, especially when it involves adapting processes that affect members. With the FTC’s “Click-to-Cancel “rule set to take effect in early 2025, fitness businesses must make key adjustments to comply. As your trusted partner, Club Automation, we anticipated these changes early and have already taken steps to support you through this transition.

What the Click-to-Cancel Rule Means for Fitness Operators

The FTC’s “Click-to-Cancel” rule is designed to make membership cancellations as easy as signing up. For fitness operators, this means revisiting how you handle cancellations, especially for auto-renewals, free trials, and recurring billing programs.

Key elements of the rule include:

  • Online and phone cancellations: Members must be able to cancel using the same method they signed up, without unnecessary steps or obstacles.
  • No sales pitches during cancellation: Members cannot be required to listen to offers or upsells unless they agree to it.
  • Disclosure of material terms: Pricing, renewal intervals, cancellation deadlines, and instructions must be clearly communicated before a member signs up and easily accessible during renewals.
  • Proof of consent: You need clear consent before charging members and must retain proof of that consent for at least three years.

Failure to comply with the rule could result in civil penalties, making it critical to ensure your business aligns with these new regulations.

While this rule may seem like a major shift, it presents an opportunity to improve transparency, build trust, and streamline your processes. Offering an easy, clear cancellation process strengthens your relationship with members and fosters loyalty.

5 Steps to Prepare Your Fitness Business for Compliance

To ensure your fitness center is compliant with the FTC’s new rule, here are five steps you can take today:

  1. Conduct a compliance audit: Review your current membership cancellation process. Is it as simple as signing up? Are there unnecessary steps that could frustrate members? Identify areas where the process can be streamlined. 
  2.  Update your membership materials: Review membership policies, contracts, and documentation to ensure the new cancellation process is clearly outlined and easily accessible, whether on your website, in a membership portal, or other convenient locations. Club Automation will provide templates and resources to assist in making these updates as smooth as possible. 
  3.  Train your staff: Your staff is key to this transition. Equip them to handle cancellations efficiently and respectfully, without barriers. 
  4. Keep members informed: Ensure your cancellation policies are clear, simple, and accessible to members both at the time they join and throughout their membership. Clear communication reduces confusion and builds loyalty. 
  5. Focus on engagement and retention: With easier cancellation options, focus on engagement and retention to keep members engaged. Use tools like Club Automation Engage Pro to ensure members experience value from day one. Offer personalized communication, promote premium features, and create targeted retention campaigns to reduce churn.

Club Automation’s Commitment to Supporting Your Fitness Business

Club Automation anticipated this regulatory change well in advance of the final rule. Updates to Club Automation are already underway to ensure full alignment with FTC requirements, providing an opportunity for fitness businesses to enhance processes and create a more member-friendly experience.

Here’s how we’re supporting your compliance journey:

  • Proactive Compliance: Updates to Club Automation are underway to ensure compliance by the Spring 2025 deadline, giving you time to adjust and implement changes.
  • Streamlined Cancellation Process: We’re removing unnecessary steps so that cancellations are as simple as signing up. This will allow your team to focus on delivering great member experiences.
  • Dedicated Support: We understand that adapting to new regulations can raise questions. That’s why we’re providing training, guides, and personalized assistance to ensure your staff and business are fully prepared.

Preparing for Long-Term Success

The FTC’s “Click-to-Cancel” rule presents a valuable opportunity to enhance your processes, build trust, and streamline member interactions. By preparing now, you can ensure your fitness business is ready for the 2025 compliance deadline and can continue delivering exceptional value to your members.

Stay tuned for important updates and communications regarding the release timing of the new Club Automation features as the compliance deadline approaches. For more information, review the full FTC Click-to-Cancel rule here and find specific health and fitness industry documentation here to explore how these regulations may impact your operations.