Federal Appeals Court Vacates FTC’s “Click-to-Cancel” Rule, Marking Major Win for Fitness Industry

 

Krissy Vann | Host, All Things Fitness and Wellness

The U.S. Court of Appeals for the Eighth Circuit has vacated the Federal Trade Commission’s “Click-to-Cancel” rule, halting a regulation that industry leaders say would have imposed sweeping and unworkable mandates on fitness businesses across the country. The ruling, issued today, comes just days before the regulation was scheduled to take effect on July 14.

The decision is being viewed as a landmark legal and policy victory for the Health & Fitness Association, which has been actively engaged in opposing the rule since its introduction more than two years ago. HFA filed formal comments during the public consultation period, submitted an amicus brief to the court, and coordinated a legislative strategy on Capitol Hill in partnership with the U.S. Chamber of Commerce and other industry stakeholders.

Originally finalized in October 2024, the FTC’s rule would have required businesses to offer consumers the ability to cancel memberships or recurring subscriptions using the same method used to sign up. For fitness operators, that meant potentially overhauling in-person and digital billing systems, reworking contract structures, and opening the door to cancellation disputes and refund challenges.

“The court’s decision affirms what HFA and our partners have long maintained: the FTC exceeded its legal authority, failed to follow required procedures, and imposed a sweeping, one-size-fits-all mandate that ignored the operational realities of fitness businesses,” said the Health & Fitness Association in a public statement following the ruling.

According to the court’s opinion, the FTC’s cost-benefit analysis was flawed, and its rulemaking process did not account for sector-specific impacts. The ruling fully vacates the rule, eliminating the need for compliance by the previously scheduled enforcement date.

The Health & Fitness Association emphasized that while it opposed the FTC’s rule, it continues to support clear and consumer-friendly cancellation policies. “We believe strongly in transparency and ease of use, and we are actively working to support policy solutions—especially at the state level—by partnering with lawmakers to enact clear, reasonable laws that make it easier for consumers to manage their memberships without imposing rigid or unworkable mandates on businesses,” the organization stated.

In recent years, HFA has helped craft state-level legislation designed to improve cancellation practices without disrupting core business operations. The group argues that balanced policies can both protect consumers and allow operators the flexibility to support member engagement and long-term financial sustainability.

With today’s court decision, fitness operators avoid what many viewed as a costly and confusing regulatory burden. For the HFA, it marks a significant moment of policy influence—showcasing the impact of sustained legal advocacy, early engagement, and coordinated industry action.

As the industry’s primary trade association, HFA says it will continue working with federal and state policymakers to shape legislation that strengthens public health while respecting the unique dynamics of fitness business operations.

 
 

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