HFA Leads Industry Response to FTC Subscription Rules

HFA filed formal comments on April 13 urging the Federal Trade Commission (FTC) to tailor its proposed rules on negative option marketing to the operational realities of in-person fitness facilities.

The FTC’s Advance Notice of Proposed Rulemaking, published March 13, 2026, invites public comment on how to update the agency’s rules covering subscriptions, automatic renewals, free-trial conversions, and recurring billing programs—a category that explicitly includes gym memberships.

HFA is supporting a move away from a one-size-fits-all framework that’s better suited to passive digital subscription services. The recommendations from HFA still protect consumers and their choices, while allowing fitness business operators to comply in a way that reflects the capabilities of today’s operational processes.

The rulemaking follows a 2025 decision by the US Court of Appeals for the Eighth Circuit, which vacated the FTC’s previous negative option rule before it could take effect. HFA had been a central figure in that outcome, supporting the legal challenge that led to the court’s decision.

In the 14-page comment letter filed with the FTC, HFA acknowledged the consumer protection concerns that have historically surrounded fitness memberships—particularly about billing transparency and cancellation practices—while arguing that many provisions contemplated in the vacated rule remain out of step with how fitness facilities actually operate.

According to the HFA letter: “Health and fitness memberships differ fundamentally from low-touch, passive subscription models such as streaming or other digital services. These are [memberships at] brick-and-mortar businesses that operate physical facilities, employ staff, maintain equipment, and engage with consumers on an ongoing, in-person basis.”

Provisions of Concern in FTC’s Framework

HFA’s comments focused on several specific provisions it wants the FTC to reconsider or clarify.

• Cancellation: HFA asked the Commission to distinguish between canceling a negative option feature—such as stopping an automatic renewal—and terminating an entire membership agreement, which may encompass facility access, billing arrangements, and dispute resolution terms that have nothing to do with negative options.

• Recurring charges: The letter also pushed back on language from the vacated rule requiring sellers to “immediately halt recurring charges” upon cancellation, noting that billing systems operate through multi-step processes involving third-party processors, ACH networks, and card networks, and that last-minute changes are frequently infeasible.

• Advance notice periods: HFA also objected to a blanket prohibition on advance notice periods for cancellation. Millions of existing member contracts already include such provisions, which are often used to align cancellations with billing cycles or to facilitate retention conversations. HFA argued that short, clearly disclosed notice periods—such as one month for a month-to-month membership—should remain permissible, provided consumers understand the timing and any final charges.

• Annual reminders: On the question of annual reminders, HFA said a blanket requirement across all negative option programs is unwarranted. Unlike digital subscriptions, where consumers may forget they are enrolled, fitness facility members engage with their memberships in person and on a regular basis, making periodic reminders of limited utility. HFA argued that the FTC’s concern about “forgotten subscriptions” applies primarily to passive, low-engagement services.

• Compliance costs: HFA noted that industry technology providers incurred seven-figure developer expenses when attempting to meet requirements under the prior rule, often deploying only interim solutions that required manual intervention. Any future rulemaking, the association said, should include a phased implementation timeline.

HFA also urged the FTC to adopt a flexible exemption framework that could apply industry-wide, not just to individual companies, and to consider whether the fitness sector—already governed by comprehensive state statutes, automatic renewal laws, and existing federal payment protections—warrants relief from specific requirements that do not align with its business model.

HFA will continue to engage with federal agencies to help protect industry interests and create incentives that will increase access to the preventive health services provided by the fitness industry.