The decision to strike down the FTC’s “Click-to-Cancel” rule was met with praise from industry leaders, who said the mandate would’ve created significant operational challenges.
The US Court of Appeals for the Eighth Circuit struck down the Federal Trade Commission (FTC)’s “Click-to-Cancel” Rule. The FTC was set to implement the rule on July 14.
The rule would’ve required companies to let consumers cancel subscriptions through the same method they used to sign up has been struck down. The court determined that the FTC didn’t follow the proper procedures laid out in the FTC Act when creating the rule.
Although the court acknowledged that unfair or deceptive practices in subscription marketing shouldn’t be tolerated, it ultimately ruled that the procedural missteps in the rule-making process were too significant to ignore. As a result, the entire rule has been vacated due to the harm caused to the petitioners.
This ruling is considered a major victory for the health and fitness industry.
HFA has been deeply involved in this issue for more than two years, starting with formal comments on the original proposal and continuing through every phase of the process. They filed an amicus brief in the case to highlight the rule’s burdens on health and fitness facility operations, while also leading a Capitol Hill strategy to prepare a Congressional Review Act resolution in partnership with the U.S. Chamber and industry allies.
As a result of the ruling, according to HFA:
- The FTC rule is fully vacated and will not take effect on the July 14 compliance date.
- Fitness operators are no longer subject to rigid, unclear cancellation mandates, avoiding costly system overhauls, contract restructuring and potential legal exposure.
- HFA’s efforts prevented unnecessary cancellations and refund disputes that could’ve arisen from the rule’s vague requirements.
“The Health & Fitness Association applauds the U.S. Court of Appeals for the Eighth Circuit for vacating the FTC’s “Click-to-Cancel” Rule,” the HFA team wrote in a statement. “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. We thank the court for recognizing these concerns and reinforcing the importance of a rulemaking process grounded in law, transparency, and practical implementation.”
You can read the full statement here.
In response to the court’s decision, HFA reaffirmed its support for fair and transparent cancellation policies, while opposing overly broad federal mandates. The organization emphasized its commitment to promoting balanced, state-level solutions that work for both consumers and fitness businesses. HFA also stated it will remain actively involved if the FTC revisits the issue, ensuring any future rule making is practical and informed by the industry.
