8 min
The Federal Trade Commission (FTC) is rolling out a new “Click to Cancel” rule, which takes effect on July 14, 2025. It’s simple: if a member can sign up online, they should be able to cancel just as easily.
This is your opportunity to modernize your cancellation process and make things easier for your members. No more hoops to jump through or outdated policies. No more hoping people forget they signed up.
If you’re running a gym with hundreds of active memberships, these changes might seem daunting. But don’t worry—we’re here to help.
Let’s go over what’s changing, why it matters, and how you can get ahead of the curve. This isn’t just about compliance; it’s about improving the way you work and building trust with your members.
What Is the FTC’s “Click to Cancel” Rule?
The FTC’s new rule is simple: if someone signed up online, they must be able to cancel online—easily, and without jumping through hoops.
This is part of the final rule on “negative option programs”, which covers subscriptions that auto-renew, including gym memberships. It targets deceptive cancellation tactics and hidden terms that make it hard for people to stop being charged.
Under the rule, businesses must offer a “simple mechanism” to cancel, through the same channel the person used to sign up. So if they joined your gym via a website, cancellation must be possible on that website—no calls, emails, or in-person visits required.
It’s already published in the Federal Register. And it’s not just about consumer protection. It’s about forcing subscription-based businesses—including gyms—to respect informed consent and simplify cancellation.
Why This Matters to the Fitness Industry
Gyms and studios are in the direct line of fire. Why? Because recurring memberships are the core of your business—and the FTC knows it.
The “Click to Cancel” rule isn’t just targeting streaming services or retail subscriptions. It’s aimed squarely at any business that makes cancellation harder than sign-up.
And fitness has a reputation problem here: in-person cancellations, endless paperwork, or customers feeling stuck paying even after they’ve tried to quit.
On average, Virtuagym clients manage over 370 active memberships per month. Studios can juggle up to 50. Now imagine handling every cancellation request manually, while also staying legally compliant. That’s a recipe for churn and bad reviews —unless you adapt fast.
What’s changing with the FTC’s new rule — and what it means for your business:
The Federal Trade Commission (FTC) introduced the Click to Cancel rule in response to a growing number of consumer complaints about how difficult it was to cancel subscriptions—especially those that renewed automatically.
According to FTC Chair Lina M. Khan:
“Too often, companies make it easy to sign up but hard to cancel. The FTC’s rule puts an end to these tricks and traps, saving Americans time and money. No one should be stuck paying for something they no longer want.”
Key reasons for the rule:
Rising complaints
The FTC saw a steep increase in complaints about negative option and recurring billing practices — from an average of 42 complaints per day in 2021 to nearly 70 per day in 2024.
Deceptive practices
Some companies used misleading tactics to keep customers locked in, such as hiding important terms or making cancellation deliberately difficult.
Lack of transparency
Businesses often failed to clearly disclose the key terms before collecting payment info.
Unwanted renewals
Many consumers were re-enrolled without their clear, informed consent.
These aren’t just bad experiences—they’re deceptive practices. The FTC’s final rule, now in the Federal Register, requires businesses to offer a simple mechanism to cancel, especially for subscriptions and memberships sold through subscription services or recurring payment programs.
The goal? Make it easier for consumers, reduce legal risks, and stop shady tactics across the fitness industry and beyond.
👉 Struggling with outdated cancellation processes? Discover smarter retention strategies that keep members engaged without relying on friction. Explore Gym member retention strategies for 2025
What the New Rule Requires Businesses to Do
The FTC’s “Click to Cancel” rule doesn’t leave room for interpretation. It outlines specific actions that gyms, studios, and all subscription-based businesses must take:
Cancellations must be as easy as sign-ups
If a member joins through your website, they must be able to cancel through your website—no redirects, no calls, no forms that go nowhere.
One-step cancellation
You can’t hide behind five-screen processes or vague links. There needs to be a clear, straightforward method to stop recurring payments.
No upsells during cancellation
If you want to offer a pause or discount, fine. But you must first give a direct option to cancel—without delay or distraction.
Written confirmation
After cancellation, consumers to cancel must receive a confirmation, with no surprise charges showing up the next month.
In short, the rule forces businesses to match the simplicity and speed of the sign-up process—and if you can’t do that, you’re not compliant.
What You Can’t Do — And Why It Matters to Your Gym
The FTC’s click-to-cancel rule isn’t just about ticking legal boxes—it’s about how you treat your members. Here’s what gets gyms in trouble:
- Hiding cancellation terms in confusing fine print. If your members can’t easily see how or when to cancel, they feel tricked—and that destroys trust.
- Ignoring cancellation requests. If someone asks to leave and you keep charging them, it’s not just bad service—it’s a legal risk.
- Making cancellation harder than sign-up. Any extra steps, phone calls, or in-person visits create frustration—and the FTC calls that a deceptive practice.
- Forcing members who signed up online to cancel offline. That’s against the new rule.
Why does this matter beyond the legal side? Because frustrated members talk. They leave bad reviews. They tell friends to avoid your gym. And the cost to your brand and bottom line can be much higher than any fine.
Legal Challenges of Ignoring the Click to cancel rule
Non-compliance isn’t just risky—it’s expensive.
Under the FTC’s new rule, gyms and fitness businesses that don’t offer a compliant cancellation process can face legal action, financial penalties, and public scrutiny. That includes violations tied to recurring charges, lack of informed consent, or failing to disclose key terms.
Worse, if your cancellation process is challenged and found to be deceptive, you could be required to refund months of payments—and face enforcement from both the FTC and state regulators. Think California, where strict cancellation laws already apply to fitness businesses.
Don’t forget the PR damage. Legal trouble spreads fast—especially when it comes from something as basic as letting people cancel.
Ignoring this rule isn’t a loophole. It’s a liability.
How Gym Businesses Can Prepare For The New Cancellation Process
Start with this: map your sign-up and cancellation flows side by side. If one takes 30 seconds and the other takes five emails and a phone call, you’ve got a problem.
Here’s what to fix:
- Make cancellation possible online. If you’re not there yet, it’s time. Link it clearly from your member area or app.
- Review your terms. That 30-day cancellation notice? If it’s hidden or overly complex, revise it now. Simpler is safer.
- Train your team. Staff should know how to handle cancellation requests the same way they handle sign-ups: fast and professionally.
- Communicate changes. Updating your cancellation policy? Tell your members. Transparency reduces complaints—and shows you’re running an honest operation.
This rule isn’t optional. But compliance can also be an opportunity to clean up messy systems and rebuild trust.
Technology as the Fix: Automating “Click to Cancel”
Manual processes won’t save you here. The only realistic way to comply with the FTC’s new rule—at scale—is to use smart, automated systems.
With the right tech, you can:
- Let members cancel directly through your app or member portal
- Sync cancellation requests with billing systems to stop recurring charges immediately
- Track all requests automatically for legal protection and record keeping
- Set up notifications and follow-ups to win back customers the right way (not through friction)
That’s what tools like Virtuagym’s member management system are built for. Instead of risking non-compliance, you make the cancellation experience fast, professional, and—yes—actually helpful.
Real Example: Grupo Magma
Grupo Magma didn’t wait for regulation to clean up their workflows.
With Virtuagym, **they simplified both onboarding and cancellation—**automating what used to be a headache, and turning it into a smooth, branded experience.
“We knew that technology would be essential to differentiate us. Virtuagym has allowed us to manage everything efficiently, saving time and improving the customer experience.”
— Noelia Ferreira, Grupo Magma
Don’t risk non-compliance or wasted hours on manual cancellations. See how automation can simplify your processes and keep your gym ahead of the FTC’s click to cancel rule.
Why Manual Systems Won’t Cut It Anymore
If you’re still handling cancellations through printed forms, emails, or staff-managed spreadsheets, you’re exposed.
Manual systems mean:
- Delays in processing requests
- Human error in billing cutoffs
- No audit trail in case of a legal dispute
- And worst of all: frustrated members who feel ignored
Now layer on 370+ active memberships per month—the average Virtuagym gym client manages—and you start to see the risk. It’s not just about convenience. It’s about scaling your operations without breaking compliance—or customer trust.
The new rule doesn’t give you time to figure it out later. You need a system that handles this reliably, now.
Final Take: Turn Compliance Into a Business Advantage
The FTC’s “Click to Cancel” rule is more than just regulation—it’s a clear signal that old ways won’t cut it anymore.
You can keep risking legal trouble and member frustration—or you can modernize your gym business.
Simplifying cancellations isn’t losing customers—it’s earning respect. The gyms that make it easy to leave will be the ones their members actually want to stay with.
With tools like Virtuagym, compliance becomes automatic. You reduce churn, build trust, and turn regulation into a growth opportunity.
Because here’s the truth: the easier it is to leave, the more reasons people will have to stay.
