Click-to-cancel, auto-renewal, and price transparency are top issues in statehouses across the country in 2024.
While national laws and regulations like the recent FTC’s “Click to Cancel” rule tend to dominate the headlines, the Health & Fitness Association (HFA) notes that the state-level laws and regulations that often have the biggest impact on fitness businesses Focuses on important legislative issues. Conclusion.
In 2024, HFA tracked more than 1,000 bills in 20 states and reviewed each piece of legislation to determine its potential impact on the fitness industry, HFA recently released its 2024 State Advocacy Report. I shared it in a book.
HFA leaders also met with state legislators and worked with state lobbyists to push for legislation that would benefit fitness businesses across the country.
HFA secured only 48 wins and 1 loss on major legislation in statehouses across the country in 2024, according to the report. Among the key legislative issues at issue, HFA focused on:
Click-to-cancel and automatic renewal Price transparency Membership tax Data privacy protection No cashless retail stores Liability waiver
“The advocacy work we’ve been doing this year is about more than just a return on investment; it’s about improving fitness for all fitness businesses, large and small,” said Mike Gosinski, HFA’s vice president of government affairs, in a memo to members. It’s insurance,” he said. “By blocking costly and restrictive laws, we are protecting the bottom lines of gyms, fitness centers, and health clubs across the country, from boutique studios to national chains. Freed from the burden of necessity, we can continue to thrive.”
Click to cancel and auto-renew
According to the report, HFA has suspended or amended 31 state bills related to click-to-cancellation and automatic renewal requirements. Broadly speaking, this type of bill would require fitness facilities to offer members more cancellation options, exposing businesses to increased costs and the risk of higher churn rates. It will be.
HFA secured victories on click-to-cancel and auto-renewal issues in states including New York, California, and Massachusetts. Without HFA’s intervention, California carriers would have faced nearly $70,000 in additional staffing costs annually due to the proposed telephone staffing requirements, according to the organization.
“‘Click to cancel’ may sound good in theory, but consider how such a policy would be implemented in today’s complex digital world and other realities. If we don’t, these bills will ultimately harm not only businesses, but the customers they serve,” Gosinski wrote.
Notably, the Federal Trade Commission (FTC) last week passed a national click-to-cancellation rule forcing fitness facilities nationwide to allow members to easily cancel their memberships online or over the phone. This is the introduction of While the rules are bad news for fitness businesses across the country, exposing them to increased operating burdens and increased risk of cancellations, the blow to gyms and studios should be softened by key concessions that HFA helped secure. He pointed out that.
Total price disclosure requirements
In 2024, HFA also worked on price transparency legislation at the state level. These bills relate to “gross” disclosures, which seek to force fitness companies to disclose the full cost of all memberships, including fees and service costs.
According to HFA, charging a total fee is “contrary to the diversity of the fitness industry.” The result is pricing ambiguity, reduced consumer transparency, and the potential for fines and lawsuits. ”
In 2024, HFA successfully suspended or modified eight gross price bills in five states: Minnesota, Virginia, Colorado, Illinois, and New York.
In 2025, states including Virginia, Colorado, New Jersey and Maryland are expected to introduce or reintroduce gross price bills, according to HFA.
Fitness membership consumption tax
HFA is also fighting back against state bills that would increase the sales tax Americans must pay on fitness memberships.
“New and increased taxes on physical activity are hindering businesses’ ability to grow and limiting Americans’ access to staying healthy,” the group said.
In 2024, HFA leaders took aim at sales tax bills in Maryland, Connecticut, Oklahoma, and Kansas. They were successful in halting or amending the bill in Maryland.
Next year, Maryland, New York, California and Minnesota will introduce new sales tax bills.
In contrast, lawmakers in some states are working to reduce or eliminate sales taxes on fitness facilities. HFA notes that four such bills have been introduced this year. The organization says it will work to get these bills over the line in 2025.
Related items
data privacy, cash and minimum wage
HFA also said it has worked to suspend or amend bills related to data privacy protection (Washington state), cashless retail bans (Florida, Vermont), and minimum wage increases (California).
The organization also provides subsidies for fitness facilities, expanded insurance coverage for fitness businesses, liability protection for automated external defibrillators (AEDs), and tax credits for military personnel and their families who attend fitness facilities. It also highlights the efforts being made to promote this.
“In Pennsylvania, a bill we supported would provide National Guard, Reserve, and active-duty military members with a $600 credit to use at the fitness facility of their choice,” HFA notes. “This bill passed, and many more states have proposed other bills.”
What to watch in 2025
Looking ahead to 2025, HFA is highlighting several key legislative issues worth monitoring in statehouses across the country.
Potential risks in 2025 include expanded consumer protection laws (click-to-cancel, auto-renewal, member privacy), push for higher sales taxes on fitness memberships and services, and proposed minimum wage increases. Contains.
The results of next month’s state-level elections are likely to influence the legislative landscape in 2025.
“Changes in party control in key states could mean opportunities for more aggressive regulation or, conversely, pro-business reforms,” HFA notes. “No matter the outcome, HFA stands ready to represent and protect your business.”
Read HFA’s 2024 State Advocacy Report in full here
