In a statement, Liz Clark, IHRSA president and CEO, criticized the Federal Trade Commission’s (FTC) proposal dealing with cancellation methods for specific services and memberships.
The “click to cancel” provision would require a “simple” cancellation mechanism for consumers to cancel subscriptions using the same method to enroll initially.
Clark charged that the Biden Administration and the FTC apply a “one size must fit all” assumption to a rule dealing with complex and diverse contracts between consumers and service providers.
She added, “This proposed rule demonstrates that the FTC and Biden Administration officials who support it fundamentally misunderstand the nature and reality of the brick-and-mortar gym and studio business model.
“Gyms, studios and related providers play a vital role in helping improve the physical and mental health of more than 60 million consumers. The majority of these benefits are accrued from exercise, classes and services delivered at a brick-and-mortar location or, in many cases, multiple locations of the same brand or family or locations. Many also offer bundle or short-term packages.
“This rule appears more oriented to deal with online games, services, programs, and products and not physical gyms and studio locations where consumers regularly visit.
“IHRSA looks forward to having a dialogue with the FTC and Biden Administration officials on the positive mental and physical health benefits of our industry’s services as well as the pro-consumer platforms, agreements and interaction arrangements already in place to ensure fair and transparent membership contracts with our millions of customers.
“Online abuses and junk fee situations are rife in some app and online service areas of the digital universe, but not the brick and mortar space of gyms and studios that are Main Street businesses with a physical presence in every corner of the country,” concluded Clark
