The Federal Trade Commission (FTC) has introduced the “Click to Cancel” Rule, formally known as the “Negative Option Rule,” to address the growing number of consumer complaints regarding difficult subscription cancellations. Under this rule, businesses based in the U.S. that allow customers to sign up for a service online must also provide an equally simple way to cancel—without unnecessary hurdles.
Please note that this should not take the place of legal guidance, so ensure you consult a legal professional to ensure your business follows these updated regulations and any other local laws. PushPress is not liable for clients that do not follow these procedures to ensure their business is compliant.
What the Click-to-Cancel Rule Means for Your Gym or Studio Membership Plans
If your gym or studio offers online sign-ups for recurring memberships, you must also offer a hassle-free online cancellation option. Here’s what you need to know:
Easy Cancellations
If a customer can join online, they must be able to cancel online just as easily; without unnecessary obstacles. Businesses must provide a simple cancellation process that mirrors the ease of signing up.
Clear Disclosures
Members should receive upfront and transparent information about automatic renewals, pricing, billing cycles, and cancellation policies.
No Sneaky Tactics
Requiring phone calls, in-person visits, or unnecessary steps (like mandatory “exit interviews”) to cancel is prohibited.
Written Consent for Recurring Charges
Businesses must obtain explicit written consent before charging members on a recurring basis, ensuring this agreement is clearly stated and not buried in fine print.
Equal Transparency
The goal of this rule is to make cancellation just as simple and transparent as signing up. Members should have full control over their subscription status without frustration.
Why This Matters
This new rule ensures fairness and consumer protection, preventing businesses from using deceptive or difficult cancellation processes. If your gym or studio offers online membership sign-ups, it’s essential to review and adjust your cancellation policies to remain compliant.
For more details, visit the FTC website, watch our webinar with GymLawyers, or consult legal professionals to ensure your business follows these updated requirements.
Need More Help?
For further assistance:
Check out other Help Articles.
Use the PushPress Messenger (blue box in your CORE account).
Email us at support@pushpress.com.
About PushPress
PushPress is a gym management software that can help you a lot in managing your gym. We've helped thousands of local gyms streamline and professionalize their businesses with our intuitive, powerful solution for managing fitness facilities - all from the palm of their hands! Want to take charge? Give us 3 minutes on the phone or schedule an in-person demo today!