The FTC’s Negative Option Rule includes regulatory protections for fitness businesses, thanks to HFA’s advocacy work.
The Health & Fitness Association (HFA) secured several protections for U.S. fitness facility operators in the Negative Option Rule, otherwise known as “click-to-cancel,” which the Federal Trade Commission (FTC) finalized on October 16. However, some challenges remain for small business operators.
The rule requires businesses offering goods or services with recurring payments — such as fitness center memberships — to provide a cancellation process as simple as the sign-up.
This 230-page decision incorporated several changes that were a direct result of the HFA’s work with the FTC. This includes the removal of annual reminder requirements for long-term memberships and allowance for fitness facility operators to engage in customer retention efforts during cancellation requests.
These wins demonstrate the importance of having an industry-unified voice in Washington, D.C. Through the collaborative efforts of the National Health & Fitness Alliance (NHFA), HFA developed a consensus position that reflected the needs of HFA members so that the FTC understood the operational realities of fitness facilities.
“Although these changes mark real progress, the new rule still presents serious challenges for small operators, and the industry must remain vigilant in addressing these obstacles.”
Although these changes mark real progress, the new rule still presents serious challenges for small operators, and the industry must remain vigilant in addressing these obstacles.
“Our priority remains creating an environment where health and fitness facilities can succeed while maintaining consumer trust,” said HFA Vice President of Government Affairs Mike Goscinski. “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 final rule will take effect 180 days after being officially posted in the Federal Register. In the meantime, for more information about the ruling, read the HFA’s issue brief, which digests the lengthy FTC document into manageable bits of information.
To ensure you meet new compliance requirements, register to attend HFA’s November 13 policy briefing on the rule (HFA members only).
If you have questions or concerns, please contact Mike Goscinski at mgoscinski@healthandfitness.org.
Kelsi Steinkamp is the communication coordinator for the Health & Fitness Association.
