Walla Simplifies Studio Compliance with the FTC's New "Click-to-Cancel" Rule

The Federal Trade Commission’s (FTC) newly finalized "Click-to-Cancel" rule is a game-changer for fitness studios offering recurring memberships. This new ruling, set to take effect in 2024, mandates that businesses with recurring services, including fitness studios, provide an online cancellation option as easy to use (and straightforward) as the initial sign-up process—allowing your clients to end their memberships with minimal effort. This is part of a broader FTC push for transparency and consumer protection to reduce “subscription traps” and foster more trust between businesses and their clients.

What does this ruling mean for your fitness studio?

Compliance with this new rule may require adjustments to existing cancellation processes. You’ll need to adapt your current membership management practices to meet this consumer-friendly standard, and Walla can help with an all-new, coming soon consumer click-to-cancel feature.

Here are a few ways this “Click-to-Cancel” ruling might impact your daily operations:

• Updated studio software functionality: Any digital platform supporting subscription-based businesses and memberships must support a straightforward, one-click cancellation feature. Walla’s updated cancellation feature (to be released in the near future) will allow your clients to easily cancel a membership or plan without needing additional help or customer service assistance—allowing you to stay confidently compliant with the new FTC guidelines. 
• Streamlining customer service protocols: Customer service and front-desk staff at your studio should be prepared to handle online membership cancellations quickly and with minimal steps, as the FTC rule discourages in-person-only or phone-based cancellations unless they are as straightforward as the online option. It’s also important to inform studio staff of this ruling. 
• Reducing membership frustration: The FTC “Click-to-Cancel” rule is expected to improve consumer satisfaction by removing barriers to cancellation. Members may feel more confident signing up if they know they aren’t locked into a membership they can’t quickly exit (or ultimately afford).

How can Walla help your studio stay compliant and successful?

• Evaluate your current membership process: Review your studio’s current membership system to understand how cancellations are handled. Does the process require members to contact a staff member or send an email, or must they complete a multi-step online process? Walla will ensure that cancellations at your studio can be accomplished in a single, easy-to-access online step and new feature.
• Communicate transparently: Transparency is key. Make sure your cancellation policy is clear and visible on your studio website. Members should know upfront and feel they’ll have an easy exit path if they choose to cancel in the future.
• Track cancellation trends: With Walla’s Plan Cancellation Report, you can save more clients by understanding the “why” behind cancellation trends, what can be fixed to win back members, and what you can take instant action on—especially regarding the new FTC ruling.
• Maintain cancellation windows + rules: In Walla, when cancellations take into effect regarding booking and billing will remain the same pertaining to our new, coming soon click-to-cancel feature. Clients can book classes as far as the booking window allows until their membership or plan has ended or been canceled. If they have scheduled any classes beyond the date of their cancelation, those reservations will be removed when the plan cancelation is completed.

Designed with flexibility and ease of use in mind, Walla’s membership management features will offer an intuitive, self-service interface that allows members to manage and cancel their memberships quickly, ensuring your studio stays compliant with FTC requirements while giving members a transparent, one-click experience when they choose to end their subscriptions.

The FTC’s “Click-to-Cancel” rule represents a significant change for the fitness industry, but it also provides an opportunity to build stronger, trust-based relationships with your members. By showcasing a straightforward cancellation process, your studio illustrates a commitment to member satisfaction and transparency, which will continue to build a positive reputation in your community. With the right approach and tools in Walla, your studios can meet the new requirements while still focusing on what matters most: a great member experience.