📘 Help Doc: FTC “Click-to-Cancel” Rule Compliance
Effective Date: July 14, 2025 Applies to: All U.S.-based gyms offering auto-renewing memberships or subscription-style plans
⚠️ What This Is
In July 2025, the Federal Trade Commission (FTC) enacted the Click-to-Cancel Rule, designed to protect consumers from “subscription traps.”
If your gym offers auto-renewing plans, you are now legally required to make canceling just as easy as signing up.
🚫 Legal Disclaimer
⚖️ IMPORTANT: Gym Launch is not a law firm. This documentation is for educational and operational purposes only.
Always review any system, script, or cancellation process with a qualified legal advisor licensed in your jurisdiction.
🧠 What the Rule Requires (Key Points)
1️⃣ Cancellation Must Be as Easy as Sign-Up
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If a customer joined online, they must be able to cancel online—in one or two clicks.
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No “in-person only” or “call to cancel” policies allowed if sign-up happened digitally.
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If they signed up in person, then cancellation must be possible via phone or online.
👉 Bottom line: No unnecessary hoops or “hard-to-find” cancel buttons.
2️⃣ Clear Disclosures & Explicit Consent Required
Before collecting billing info, you must:
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Clearly list costs, renewal frequency, and how to cancel
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Get separate and unambiguous consent for auto-renewals
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Example: A checkbox specifically for agreeing to auto-renewal terms
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👉 Burying this info in the fine print is no longer acceptable.
3️⃣ No Obstructive Retention Tactics
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You may not require customers to contact support, argue, or wait to cancel
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You can offer incentives (discounts, freezes), but only after cancellation is processed
👉 All retention efforts must happen after the cancellation is confirmed.
💸 Why This Matters
Violating the Click-to-Cancel Rule is considered deceptive business conduct and carries major penalties:
| Consequence | Details |
|---|---|
| 💰 Civil Fines | Up to $50,000 per violation |
| ⚖️ Refund Mandates | Required refunds for affected customers |
| 🧑⚖️ Legal Action | Class-action lawsuits, court injunctions |
A handful of complaints could cost your business hundreds of thousands.
✅ What You Should Do Next (Action Checklist)
| Action | Recommended Steps |
|---|---|
| 🔄 Update Your Website & App | Add a direct, easy-to-use cancellation option (same flow as sign-up) |
| 🔐 Separate Auto-Renew Consent | Create a distinct opt-in box for auto-renewal terms |
| 📄 Disclose All Terms Clearly | Show cost, billing frequency, and cancellation policy before purchase |
| 🛑 Stop “Approval-Only” Cancellations | Allow users to cancel without delay—then offer freezes, discounts, etc. |
| 👨⚖️ Consult Your Attorney | Review everything with a legal expert to protect your business |
🧭 Where to Learn More
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FTC Official Rule Summary (link to be added)
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GymLaunch Support – Chat with a support coach
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Your local attorney – particularly one familiar with consumer law and FTC compliance
🔁 Keep It Simple, Keep It Legal
The rule exists to protect consumers—but when done right, it also builds trust and long-term brand loyalty.
Don’t let outdated cancellation practices expose your gym to risk. Set up a clean, transparent, and automated process—and review it often.