Navigating the FTC’s New Click to Cancel Rules With ABC Fitness

The FTC just announced a new ruling that is likely to affect gyms and fitness centers nationwide. Known as the “click-to-cancel” rule, and mirroring some existing state law requirements, it requires businesses that use automatic renewal features to provide an easy-to-use and find cancellation method for their subscriptions. For some businesses with clear cancellation processes, this shouldn’t be a problem. For other establishments, however, this may require some changes. The rule is anticipated to go into effect in May 2025, though it is currently subject to legal challenges.  Nonetheless, many states already require some of its tenants like easy cancellation features, with more states likely to adopt these measures very soon. 

We’d like to say from the very beginning that making it easy for your members to cancel may be a business opportunity for you. Think of it this way: if you make it difficult to get out of a contract, that member may be afraid to sign up in the first place or may never come back due to that negative experience. They may also tell their social circles about their experience and leave a scathing review online. These experiences can also lead to lawsuits, Better Business Bureau reports and/or Attorney General complaints. If, however, you make cancelling a simple click of a button, you eliminate many of those issues. 

Now, let’s dive into what the new rule means, how ABC Fitness solution aligns with it, and how we can help you turn your compliance into a business driver. 

What Is the FTC’s “Click-to-Cancel” Rule? 

The FTC’s “Click-to-Cancel” rule is a game-changer for businesses using automatic renewal features with their clients, including gyms and fitness studios. It focuses on longstanding frustrations from consumers who’ve struggled with confusing and time-consuming cancellation processes. Essentially, the goal is to make it as easy to cancel a subscription as it is to sign up for one. 

Here’s what the new rule means for fitness business owners operating in the USA. 

Clear and Transparent Disclosures of Material Terms and No Misrepresentations 

Members must be given clear and conspicuous (think unavoidable) information about the material terms of their subscription, including: 

That their contract automatically renews with recurring charges, if and when changes will increase, the deadline (by date or frequency) by which members must take action to stop the charges, the amount and frequency of the charge, how to cancel, and any other terms material to their contract, upfront. 

In short, upfront transparency isn’t optional; it’s required. 

Consent for Renewals 

Once the rule goes into effect, it means that members must also now provide separate, express consent for an automatic renewal feature, such as a separate check box or initials line for the automatic renewal that is distinct from any other part of the transaction. This ensures customers are fully aware of and agree to ongoing charges.  

Streamlined Cancellation Processes 

Businesses will also be required to offer a cancellation method that’s just as simple as their sign-up process. If a member signed up online, they should be able to cancel online—no hurdles, no hassle. 

Non-compliance with these rules can lead to hefty fines and other setbacks, so it pays to be prepared for this new ruling.  Moreover, streamlined cancellations are already a requirement in many states, with more being added. 

Additionally, under the Click-to-Cancel Rule, certain information must be clearly and conspicuously disclosed prior to obtaining the customer’s billing information.  This includes: 

• That it is an autorenewal subscription under which the customer will be charged on a recurring basis unless they take affirmative action to cancel; 
• all information that would be material to the customer’s purchase decision; 
• if and when charges will increase; 
• the deadline (by date or frequency) by which the customer must take action to stop charges; 
• the amount and frequency of charges; 
• information necessary for the customer to find the cancellation mechanism(s). 
• Importantly, the above information must be placed before and immediately adjacent to the mechanism for obtaining consent 

How do you provide a clear and streamlined cancellation model for your members?  

With ABC Fitness, of course. 

Below, we’ll explain how two of our platforms, ABC Glofox and ABC Ignite can help you to stay compliant with upcoming state and federal legislation.

Safeguard Your Business With ABC Ignite

ABC Ignite’s key updates enhance transparency, simplify cancellations, and ensure your business stays ahead of the curve. Here are all the major product updates we’re offering to help you stay compliant on a state and federal level.  

Membership & Operations: A More Transparent Purchase Flow  

ABC Online Join 

• Before entering payment details, new members must now explicitly agree to the terms and conditions and select an auto-renew box to confirm their subscription. 

• Pricing details will be clearly accessible via a tab at the bottom of the screen, ensuring full transparency from the start. 

• With these updates, we’re reviewing the possibility of deprecating the old member portal to streamline and modernize the experience. 

Mobile and In-App Improvements

We’ve improved our in-App membership sales and recurring service purchase flow on the Ignite Engagement app:

• When prospects or members purchase a membership or recurring services, they will now be required to agree to a set of policies before viewing the full price or completing their purchase. 

• We’ve also refined the auto-renew policy language, ensuring clearer communication about ongoing charges and commitments. 

Mobile Member Profile – Manage Memberships & Recurring Services 

• Members can select their membership or recurring service and initiate a cancellation via a new Cancel Auto Renew button. 

• This ensures members can manage their subscriptions easily, reducing friction and improving satisfaction. 

• Note: In-club recurring services are currently not available for cancellation through the web platform. 

NOTE: As a business, you will also need to ensure that your own terms and conditions and any relating contracts are amended to adhere to this new legislation.  

These updates ensure ABC Ignite helps to support compliance requirements by providing an effortless cancelation experience for your members—reducing frustration and improving retention. 

Want to learn how ABC Ignite can help streamline your operations and enhance compliance? 

Streamlining Compliance With ABC Glofox

At ABC Fitness, we’re always working to ensure your business is compliant while also providing an excellent experience for your members. Here are the key updates we’re introducing that make cancellations and subscription terms clearer, more transparent, and easier to navigate. 

Member App Updates: Seamless Compliance, Better Member Experience 

Improved Purchase Checkout Screens 
Before members commit to any purchase—whether it’s a recurring membership, a one-time purchase, or a reservation-based (RS) purchase—terms and conditions will now be front and center. Members must agree to these terms before moving forward, ensuring complete transparency and compliance. This allows for double consent (to both T&Cs and the auto-renew) within one seamless checkout experience. 

Request to Cancel Form 

We’re making cancellation requests as smooth as possible while keeping gym owners in the loop. Members can submit a request to cancel directly within the app, which will then be sent to the owner for processing. Once finalized, the owner will email the member to confirm the cancellation. This ensures a clear record of cancellations and keeps communication seamless.  

Note: All agreement wording in-app will need to align with the Click-to-Cancel ruling, ensuring full compliance. Ensure you review your terms and conditions to make sure you’re compliant with all state and federal legislation 

Web App Enhancements: More Clarity, Less Friction 

Updated Checkout Process 
Just like in the Member App, our Web App now requires users to review and accept the terms before finalizing any purchase. The terms will appear in a modal on the checkout page, ensuring members fully understand their commitments before making a purchase. 

Request to Cancel Form: Web users will also benefit from a structured cancellation process. Members can request to cancel via an easy-to-use form, which gets sent directly to the gym owner. As with the mobile app, the owner will then email the member to confirm once the cancellation is processed.

Want to discover more about how ABC Glofox can help your business stay cancelation-compliant?

3 Reasons Why This FTC Ruling Is A Big Opportunity For You 

Compliance isn’t just about avoiding penalties and lawsuits; it’s about meeting the expectations of your members. Members want flexibility, transparency and the assurance that they can manage their subscriptions without frustrating obstacles. 

For fitness business owners, providing convenience is a must. If you’re hindering a member’s experience or fitness journey, they’re going to stop attending your location and will take their business somewhere else.  

With this new FTC ruling, you have the chance to get ahead of the competition by activating click to cancel in Fitness and sharing your seamless member experience with all your potential leads. Here’s why: 

1. Use Modern Solutions To Streamline Your Business 

If you’re not providing an online or in-app experience for your members, you’re about ten years behind the competition. Today’s consumers expect convenience in every aspect of their lives. If they need to pick up the phone to cancel their contract, chances are you’re never going to see that member again. With a self-service cancellation process, however, you not only meet these expectations but also leave the member with a pleasant member experience for the next time they’re looking to sign up for your fitness experience. 

2. Happy Members Stick Around For Longer 

When members feel informed and in control, they’re less likely to cancel impulsively. By providing clear, upfront information about subscription terms, you create a sense of trust that can reduce churn over time. Remember, this ruling isn’t just for contract cancellations, you also need to provide clear information on renewals at signup. If you provide an upfront, convenient and transparent sign-up for your members, then they’re far more likely to stay with you.  

3. Your Staff Are Going To Be Much Happier 

Having a seamless cancellation process can save you and your staff so much time. Think about it: instead of having to sit on the phone or in the office with angry customers, they can be out closing sales, engaging with members, and coaching their clients. Make things simple for your members and you make things simple for yourself and your team. It also means your staff are considerably happier coming into work because they know they’re not going to have to defuse an uncomfortable situation with an upset client.  

How ABC Fitness Can Support You 

ABC Fitness is the world’s leading fitness management software, and our platform is specifically designed to make your business run faster, be more profitable and to enjoy complete compliance. The ABC Fitness platform is working with our users to make it seamless for members to cancel their subscriptions while also giving you a clear record of their details, interactions and payments. That way, your member leaves happy, you have all the details you need to re-engage them as a lead and your staff has saved hours of time by not having to deal with complaints.  

Not an ABC Fitness customer yet?  

Speak to our team today to learn more.