HFA Secures Key Wins in Click-to-Cancel Rule

Washington, DC — October 17, 2024 — The Health & Fitness Association (HFA) is proud to announce a significant victory in its ongoing efforts to secure fair regulations for the health and fitness industry following the Federal Trade Commission’s (FTC) finalization of its Negative Option Rule. While the finalized rule reflects several of the concerns raised by HFA during the public comment period, marking a collaborative step forward, it remains a new regulatory hurdle that will impact the operations and growth of small businesses in our sector.

The rule’s adjustments, such as the removal of annual reminder requirements for long-term memberships and the allowance for fitness facilities to engage in customer retention efforts during cancellation requests, are important acknowledgments of the unique operational needs of in-person health and fitness services. However, the rule still introduces new burdens that will disproportionately affect small businesses within the industry.

“Today is a significant moment for the health and fitness industry, as we have successfully worked with the FTC to recognize the distinct differences between our facilities and digital subscription models,” said Liz Clark, president & CEO of the Health & Fitness Association. “Our recent successes are the result of a strategic shift in focus and unprecedented industry representation that we’ve never had before. But while these changes mark real progress, the new rule still presents serious challenges for small operators, and we must remain vigilant in addressing these obstacles.”

Despite these achievements, the HFA continues to recognize the potential challenges this rule presents, especially for small and independent fitness businesses. The association is committed to supporting its members as they work to comply with the new requirements while minimizing any adverse effects on their operations.

“Our priority remains creating an environment where health and fitness facilities can succeed while maintaining consumer trust,” said Mike Goscinski, HFA vice president of government affairs. “We’ll continue fighting to ensure the voices of small businesses are heard and that their unique challenges are addressed, so they can continue delivering essential services to their communities.”

The HFA is dedicated to advocating for the fitness industry, ensuring that businesses are equipped to navigate regulatory challenges without sacrificing the quality of service they provide to their members.

For more information about the Health & Fitness Association and the final FTC rule, please see the issue brief.

About the Health & Fitness Association

The Health & Fitness Association (formerly IHRSA), a global community of industry leaders, is the only worldwide trade association providing a unified voice for the community of leaders who operate health and fitness facilities, offer professional guidance on physical activity, and provide the tools and equipment to do so to the millions of fitness facility members who understand that exercise improves their physical and mental health.

Through advocacy, education, and research, the association speaks to opportunities, challenges, and changes that are moving the industry into a new era.

Founded in 1981, the association publishes a monthly magazine, Club Business International, and operates The HFA Show. Follow the Health & Fitness Association on Facebook, Instagram, LinkedIn, and X.