The FTC’s specific “Click-to-Cancel” rule is not in effect in 2026. A federal appeals court vacated it in July 2025 on procedural grounds, and the FTC did not appeal. But this is the mistake that gets gyms sued: the rule being gone does not mean you can go back to difficult cancellations. The core requirement, that canceling should be roughly as easy as signing up, still applies to gyms through other law: the federal ROSCA statute, the FTC’s general authority over deceptive practices, and a growing set of state automatic-renewal laws. The FTC is actively suing gyms over hard-to-cancel memberships right now, and it has restarted rulemaking on a replacement. The safe move for owners is to comply with easy-cancellation principles regardless of the rule’s status.
This guide is general information, not legal advice. Laws vary by state and change frequently. Consult a qualified attorney about your specific gym.
The one thing owners get wrong about this
Here is the dangerous misunderstanding circulating among gym owners in 2026: “The Click-to-Cancel rule was struck down, so I can go back to requiring in-person or mail-in cancellations.”
That reading is wrong, and acting on it is how gyms are getting sued right now. The specific FTC rule is gone, but the obligations it would have imposed largely still exist through other laws that were never struck down, and enforcers are using those laws against gyms aggressively. Understanding the difference between “the rule” and “the requirement” is the whole point of this guide, because getting it wrong exposes you to federal and state enforcement, lawsuits, and civil penalties.
Let’s walk through what actually happened, what applies to your gym today, and what to do about it.
What happened to the Click-to-Cancel rule
A quick, accurate timeline, because the details matter for understanding what still binds you.
October 2024: The FTC finalized a sweeping update to its decades-old Negative Option Rule, widely nicknamed “Click-to-Cancel.” It required, across subscriptions and memberships, clear pre-billing disclosure of terms, express consent to automatic renewal, and a cancellation mechanism at least as simple as the signup mechanism.
July 2025: Just before the rule’s enforcement date, the US Court of Appeals for the Eighth Circuit vacated it in its entirety, in a case called Custom Communications, Inc. v. FTC. Crucially, the court struck it down on a procedural ground: the FTC had skipped a required economic-impact analysis, not because the court endorsed hard-to-cancel practices. The court explicitly declined to bless the practices the rule had targeted.
Early 2026: The FTC did not appeal. It recodified the older, narrower version of the rule and, in January 2026, restarted the rulemaking process from scratch by submitting an advance notice of proposed rulemaking. In other words, a replacement federal rule is being worked on, likely resembling the vacated one, since the defeat was procedural rather than substantive.
So the specific 2024 rule is not in effect today. But that is only part of the picture, and the smaller part for a gym owner.
What still applies to gyms in 2026 (this is the important part)
The rule vacatur removed one specific federal rule. It did not remove the web of other laws that impose very similar cancellation obligations on gyms, and those are what enforcers are actually using.
Federal law: ROSCA and the FTC Act
The Restore Online Shoppers’ Confidence Act (ROSCA) is a federal statute that was never struck down. For memberships sold online, it requires clear disclosure of terms, informed consent to the charges, and, importantly, a simple mechanism to cancel. Separately, Section 5 of the FTC Act gives the FTC broad authority to act against unfair or deceptive practices, which includes deliberately difficult cancellations.
These are exactly the tools the FTC is using against gyms. In August 2025, the FTC sued the operator of a large national gym chain, alleging it violated ROSCA by making cancellation exceedingly difficult, requiring members to cancel only in person or by mail even when they had signed up online, and by not clearly telling members they could cancel add-on services separately. The lesson: a gym can be sued over hard cancellations under laws that have nothing to do with the vacated Click-to-Cancel rule.
State automatic-renewal laws
Beyond federal law, a growing patchwork of state automatic-renewal laws imposes its own requirements, and many are stricter than federal law. These commonly require clear and conspicuous disclosure of renewal terms, affirmative consent, renewal reminders, and simple cancellation, and several, including California’s, specifically require that if a member signed up online, they must be able to cancel online without having to call or visit in person.
States are enforcing these actively against gyms. Recent state actions have targeted gym chains for requiring in-person cancellation and for frustrating members’ cancellation attempts, with settlements requiring not just policy changes but employee training, designated compliance officers, and record-keeping. Because these laws vary by state and several were recently strengthened, a gym operating in multiple states faces a genuine patchwork of obligations.
The bottom line on what applies
Even with the federal rule vacated, the practical standard for gyms in 2026 is essentially unchanged: disclose renewal terms clearly, get real consent, and let members cancel easily, ideally through the same channel they used to sign up. That standard now comes from ROSCA, the FTC Act, and state law rather than the Click-to-Cancel rule, but it binds you just the same.
Why complying is the smart move regardless of the rule’s status
Set aside the legal detail for a moment, because there is a strong business case for easy cancellation independent of what any rule requires.
A replacement rule is likely coming. The FTC restarted rulemaking in early 2026, and because the old rule fell on procedure rather than substance, a new federal rule is likely to resemble it. Gyms that build easy-cancellation practices now will not have to scramble later, and they avoid the compliance whiplash of tightening, loosening, and tightening again.
Enforcement is active right now. Waiting for a settled federal rule is not a safe strategy, because federal and state enforcers are already suing gyms under existing laws. The risk is present-tense, not hypothetical.
Hard cancellation is bad business anyway. Difficult cancellations generate chargebacks, negative reviews, complaints, and reputational damage, and they rarely retain a member who genuinely wants to leave; they just make that member an angry critic. A member who cancels easily and leaves on good terms is far more likely to return later or refer others than one you trapped.
Easy cancellation builds trust that aids acquisition. In a market where consumers increasingly research before joining and share bad experiences publicly, being known as a gym that is easy to leave paradoxically makes you easier to join, because it removes the fear of being trapped that keeps prospects from signing up.
For all these reasons, the practical recommendation from most compliance guidance is the same: comply with easy-cancellation principles as a baseline, regardless of the exact status of any single rule.
What gym owners should actually do: a compliance checklist
Here is a practical, plain-language checklist. This is general guidance to discuss with your own attorney, not a substitute for legal advice tailored to your state and situation.
Review how members can cancel. If members can sign up online, they should be able to cancel online through a simple mechanism, not forced into an in-person visit or a mailed letter. Forcing friction that the signup did not have is exactly what enforcers target.
Match cancellation ease to signup ease. The core principle across ROSCA, the FTC Act, and state laws is symmetry: canceling should be about as easy as joining. If joining took two clicks, canceling should not take two phone calls, a visit, and a certified letter.
Disclose renewal terms clearly and up front. Before you take payment, clearly and conspicuously disclose that the membership auto-renews, the price, the billing frequency, and how to cancel. Buried fine print is a classic enforcement trigger.
Get genuine, affirmative consent to auto-renewal. Members should actively agree to the automatic renewal, not have it slipped past them. Pre-checked boxes and hidden terms are red flags.
Send renewal reminders where required. Several state laws require advance notice before an auto-renewal or before a long-term term renews. Know the rules for every state you operate in.
Let members cancel add-ons separately. If you sell add-on services (personal training, tanning, classes), make clear that members can cancel those without canceling the whole membership, and vice versa. Bundling cancellation confusingly has been specifically challenged.
Stop billing promptly after cancellation. Continuing to charge after a member has canceled is one of the most heavily penalized practices in this whole area. When a member cancels, the charges must actually stop.
Document everything. Keep clear records of your disclosures, consent flows, and cancellation handling. Recent settlements have required exactly this kind of documentation, and good records protect you if you are ever questioned.
Train your staff. Front-desk and retention staff must know they cannot refuse or stall a valid cancellation. Enforcement actions have specifically cited staff frustrating cancellation attempts, and settlements have mandated staff training.
Check your specific states. Because state auto-renewal laws vary and several were recently strengthened, confirm the requirements for every state where you have members, ideally with a qualified attorney.
Handling this well is far easier when your cancellation, billing, and renewal-notice processes run through a system built for it rather than a manual, paper-based process. Connected membership and billing software can make cancellation a clean, logged, self-service process, stop billing immediately on cancellation, and keep the records that demonstrate compliance, which is exactly the friction-free, well-documented flow that current law and likely future rules reward.
The safe posture in one line: make canceling as easy as joining, disclose terms clearly, stop billing when a member cancels, and keep records, regardless of what any single rule currently says. You can see how GymRoute handles cancellations, billing, and renewal notices in one auditable system.
Frequently asked questions
Is the FTC Click-to-Cancel rule in effect in 2026?
No. The FTC finalized the Click-to-Cancel rule (an amendment to its Negative Option Rule) in October 2024, but the US Court of Appeals for the Eighth Circuit vacated it in July 2025, before enforcement began, on the procedural ground that the FTC skipped a required economic-impact analysis. The FTC did not appeal. However, the underlying requirement that cancellation be simple still applies to gyms through the federal ROSCA statute, the FTC Act, and state automatic-renewal laws, and the FTC has restarted rulemaking on a replacement.
Does that mean my gym can require in-person cancellation again?
No, and doing so is risky. Even though the specific rule was vacated, forcing in-person or mail-only cancellation, especially when members signed up online, is exactly what the FTC and state regulators are currently suing gyms over, under ROSCA, the FTC Act, and state laws that remain fully in force. Several state laws specifically require online cancellation for online signups. Reverting to hard cancellation because the rule was struck down is the single most common and most dangerous mistake owners are making.
What laws govern gym membership cancellation now?
For online signups, the federal Restore Online Shoppers’ Confidence Act (ROSCA) requires clear disclosure, informed consent, and a simple cancellation mechanism. Section 5 of the FTC Act lets the FTC act against unfair or deceptive cancellation practices generally. On top of that, many states have automatic-renewal laws, some stricter than federal law, that require clear disclosures, affirmative consent, renewal reminders, and easy cancellation. A gym operating in multiple states must comply with each state’s version.
Has the FTC actually sued gyms over this?
Yes. In August 2025, the FTC sued the operator of a large national gym chain, alleging it violated ROSCA by making cancellation exceedingly difficult, requiring in-person or mail cancellation even for members who signed up online, and by not clearly disclosing that add-ons could be canceled separately. State regulators have also brought actions against gyms for requiring in-person cancellation and frustrating cancellation attempts, with settlements requiring policy changes, staff training, and record-keeping.
Will there be a new federal Click-to-Cancel rule?
Likely, eventually. The FTC restarted the rulemaking process in January 2026 with an advance notice of proposed rulemaking. Because the previous rule was struck down on procedural rather than substantive grounds, any new rule is expected to resemble the vacated one. The timeline is uncertain, and a new rule is not imminent, but the direction of travel is clear, which is another reason to adopt easy-cancellation practices now rather than wait.
What should my gym do to stay compliant?
Make canceling about as easy as signing up (including online cancellation for online signups), disclose auto-renewal terms clearly before billing, get genuine consent to renewal, send any state-required renewal reminders, let members cancel add-ons separately, stop billing immediately when a member cancels, document your processes, and train staff not to stall cancellations. Confirm the specific requirements for every state you operate in with a qualified attorney, since state laws vary and several were recently strengthened.
Is easy cancellation bad for my gym’s revenue?
Generally no, the opposite. Hard cancellation rarely retains a member who wants to leave; it just produces chargebacks, complaints, bad reviews, and legal risk, and turns a departing member into a public critic. Easy cancellation preserves goodwill, making former members more likely to return or refer others, and reduces the fear of being trapped that stops prospects from joining in the first place. The durable way to retain members is a great experience, not cancellation friction.
The bottom line
The headline, “FTC Click-to-Cancel rule vacated,” is true but dangerously incomplete for gym owners. The specific rule is not in effect in 2026, but the requirement it embodied, that canceling should be as easy as signing up, still binds gyms through ROSCA, the FTC Act, and a growing set of state laws, and enforcers are actively using those laws against gyms right now.
The smart posture is simple and stable regardless of how the rulemaking plays out: make cancellation easy, disclose renewal terms clearly, get real consent, stop billing when a member cancels, keep good records, and train your staff. That protects you from present-day enforcement, positions you for the replacement rule that is likely coming, and happens to be good business, because a gym that is easy to leave is a gym that is easier to join and more likely to win members back.
This article is general information for gym owners and does not constitute legal advice. Automatic-renewal and consumer-protection laws vary by state and change frequently. Consult a qualified attorney about your specific gym, states of operation, and cancellation practices before making compliance decisions.
