Is Your Gym Ready for the FTC’s New Cancellation Rule?
As of May 14, 2025, the Federal Trade Commission’s new Click-to-Cancel rule will officially be in effect. This rule marks a significant shift in how recurring billing must be handled, especially for gyms and fitness centers.
If your gym offers memberships with automatic renewals or free trials that convert into paid plans, this rule applies directly to your business. At Paramount Acceptance, we’re here to help you stay compliant and member-focused without overcomplicating your operations.
What Is the Click-to-Cancel Rule?
Disclaimer: This blog is for informational purposes only and should not be considered legal advice. Gym owners should consult with legal counsel or compliance professionals to ensure their processes meet FTC requirements.
The Click-to-Cancel rule was created to protect consumers from confusing or obstructive cancellation processes. Specifically, the FTC now requires that:
“The cancellation mechanism must be at least as easy to use as the method the consumer used to initiate the negative option feature.”
– Federal Register Notice, 16 CFR Part 425
In plain terms: if someone joins your gym online, they must be able to cancel online. The ease of cancellation must match the ease of enrollment.
This applies to:
- Month-to-month memberships
- Term memberships with auto-renewal
- Free trials that roll into paid memberships
Failing to comply could result in FTC investigations, fines, and reputational damage.
Why It Matters for Gyms
Gyms have traditionally relied on manual or in-person cancellation policies. But consumer expectations have shifted. Today’s members expect convenience, speed, and transparency.
Compliance isn’t just about avoiding penalties—it’s about offering a modern, user-friendly experience that builds trust and encourages loyalty.
What Gym Owners Should Do Now
To stay compliant, gym owners need to take the following steps immediately:
✅ Evaluate your current sign-up and cancellation process
✅ Ensure cancellation is just as easy as enrollment
✅ Remove unnecessary steps
✅ Disclose all billing and cancellation terms clearly before sign-up
✅ Allow members to cancel online if they joined online
Here’s a quick checklist to self-audit your readiness:
- Can members cancel through your website or app?
- Do you stop billing as soon as a cancellation is submitted?
- Are your terms easy to find and understand?
- Are retention offers optional, not mandatory?
If you can’t confidently answer “yes” to all of these, it’s time to make changes.
How Paramount Acceptance Can Help
Staying compliant manually can be time-consuming and prone to human error. That’s why Paramount Acceptance offers built-in tools that make Click-to-Cancel compliance simple and automated.
With Paramount, you get:
🌟 Self-Service Member Portals and Mobile App Access — Let members cancel anytime, anywhere
🌟 Automated Cancellation Processing — Recurring billing stops automatically when a member cancels
🌟 Digital Confirmation Logs — Maintain detailed records of every cancellation for compliance and protection
🌟 Clear Membership Disclosures — Make billing and cancellation terms visible from day one
By automating your process through Paramount Acceptance, you save time, reduce risk, and offer a better member experience—all while staying fully compliant with FTC requirements.
Compliance Is a Competitive Advantage
The FTC’s Click-to-Cancel rule is here to stay. And while it may feel like another regulatory hurdle, it’s also an opportunity.
By making cancellation easy and transparent, you position your gym as a trustworthy, modern business that values its members. That can actually boost retention in the long run.
Need help making the shift?
Paramount Acceptance is already helping gyms across the country streamline their processes and maintain compliance. Let us show you how.
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