Recently, the Federal Trade Commission finalized its Click to Cancel rule regarding recurring subscriptions and other Negative Option Programs. For the gym industry, this means there is a clear pathway to creating enrollment and cancellation policies that are easy to follow and implement at your health club. 

In this blog, we collected questions posted by Gym Insight clients after we published our first story on Click to Cancel. We’ve also consulted with JoAnn Eickhoff-Shemek, Ph.D., Professor Emeritus, Exercise Science at the University of South Florida, (aka “Dr. JES” ) to help us understand this important update. 

Dr. JES, Is Click to Cancel a bad thing for the gym industry? 

No, consumer protection is always a good thing. To comply with this revision to the Negative Options Rule, gym owners just need to be straightforward and honest with members. It is also important for gym owners to take time to review this ruling by the FTC and to develop policies and procedures that comply with it. Your members will respect you for it. And your willingness to adhere with industry rules and state laws will build credibility. 

Common questions gym owners ask regarding Click to Cancel.

If my client joined in person, must they cancel the same way? 

Not necessarily…

Did they sign up online? Then they can click to cancel.

Did they sign up in person? They can cancel via email, online, or over the phone during normal business hours. However, you cannot require they interact with a customer service representative or a chatbot if that was not stated in the original agreement.

Can I try and save the account when members ask to cancel?

Yes. Fitness centers may offer members alternatives, such as pauses, freezes, or tier adjustments, if the choices are not burdensome and/or do not interfere with the consumer’s ability to cancel. 

Will I need to redesign my sign-up agreements or policies to comply with the Click to Cancel ruling?

Possibly, the ruling requires: 

• The cancellation process be as easy as it was to sign up.
• People be able to see and read the service terms before they consent. 
• Important information be clear, truthful, and easy to find.
• Consent be explicit, such as a signature or a checked box.
• Consent records kept for three years.

Should I ask my attorney to review our agreements?

Yes. Most importantly, ask your attorney to research your state’s health club contract laws. Some states have tough laws in place intended to reduce abuses in the sale of health club memberships. If you state law is more protective than FTC’s ruling, you must follow state law. 

We would like to thank the Health and Fitness Association and the FTC for their updates and for access to the final ruling’s summaries. You can read more here.

Gym Insight

We are a gym management software company offering a suite of products designed to make it simple and profitable to run a health club. Our subscribers easily manage members, employees, and multiple clubs with our fully integrated, mobile-based, affordable software system. We offer tablet-based sales solutions, digital keytag door access, free U.S.-based customer service, and a report system sure to keep you in the know. For a free demo, contact us at 855-367-4967 (855-FOR-GYMS) and ask for Anthony or Natalia.