FTC Delays ‘Click-to-Cancel’ Rule Enforcement as Gyms Race To Comply
The FTC won’t begin enforcing its controversial new rule until July 14 at the earliest, a 60-day extension from the previous May 14 deadline
The Federal Trade Commission (FTC) is delaying enforcement of its new “click-to-cancel” rule by 60 days, giving fitness businesses a reprieve as they scramble to comply with the new rule that makes it easier for consumers to cancel paid subscriptions like gym memberships.
The FTC was set to begin enforcing certain provisions of the controversial new rule on May 14, 2025. It will now delay enforcement of the rule until July 14, 2025, the agency announced on Friday.
Officially known as the “Negative Option Rule” but commonly referred to as “click-to-cancel,” the rule requires that businesses, including gyms, make it as easy for consumers to cancel subscriptions and memberships as it was to sign up for them in the first place.
According to the FTC, consumers who enter into subscription agreements online must be able to cancel them online in the same number of clicks. For subscriptions that were entered into in-person, businesses must give consumers the option to either cancel online or over the phone.
The rule also contains several provisions that make the subscription process more transparent for consumers, including enhanced content, disclosure and record-keeping requirements for businesses.
In delaying enforcement of the rule until July, the FTC said it wanted to ensure businesses have “ample time … to conform their conduct to the rule.” The FTC previously delayed implementation of the rule until May 14, but said businesses need even more time to comply.
“Having conducted a fresh assessment of the burdens that forcing compliance by this date would impose, the Commission has determined that the original deferral period insufficiently accounted for the complexity of compliance” the FTC wrote on Friday.
Fitness industry groups including the Health & Fitness Association (HFA) have been outspoken in their belief that while well-intentioned, the click-to-cancel rule as currently written exposes gyms, health clubs and studios to unnecessary and potentially costly operational burdens. They’ve also expressed concern that the rule forces brick-and-mortar businesses like gyms to be held to the same cancellation standards as digital subscription businesses like streaming services.
“We appreciate the FTC’s decision to delay enforcement of the Click-to-Cancel rule, which provides much-needed time for the courts to review the final regulation and for our industry to implement changes in a thoughtful, business-tenable way,” HFA vice president of government affairs Mike Goscinski told Athletech News.
“The fitness industry is committed to being as consumer-friendly as possible, but compliance must also be operationally feasible – especially for small businesses and high-volume membership models,” Goscinski added. “This delay is a responsible step that allows both the courts and Congress the opportunity to fully assess the final rule and its real-world impacts.”
Planet Fitness Sees Opportunity With New Rule
While some operators have voiced concerns with click-to-cancel, America’s largest gym brand, Planet Fitness, says it’s well-positioned to comply with the rule. The “Judgement Free” gym chain even sees a potential upside in driving new memberships.
“We remain committed to delivering a great member experience, and we want to make the cancellation process as seamless as the join process,” Planet Fitness chief financial officer Jay Stasz said during an earnings call last week.
At that time, enforcement of the rule was still slated to begin on May 14.
“We’re underway with rolling out online cancel functionality system-wide,” Stasz said, noting that over 35% of Planet Fitness locations had already implemented click-to-cancel functionality prior to April, including all corporate-owned clubs.
Planet Fitness CEO Colleen Keating suggested that making cancellations easier might lead to more people signing up for gyms as potential members feel more confident knowing they have increased flexibility.
– Courtney Rehfeldt contributed to this story