The United States Federal Trade Commission’s new Click-to-Cancel rule, effective May 14, 2025, introduces stricter consumer protections around recurring billing, memberships, and subscription services. If your business is located in the US and offers auto-renewing memberships or requires a credit card for recurring services through WellnessLiving, then these regulations apply to you.

This guide explains the regulation, how WellnessLiving helps you stay compliant, and the configuration steps and best practices to ensure your cancellation process meets both federal and client expectations.

What the FTC requires

Businesses must provide a cancellation method that is as simple and accessible as sign-up. If a client can enroll online, they must be able to cancel online. This means no phone calls, emails, or visits required unless those were part of the sign-up process. We updated the client cancellation flow to reflect these requirements.

What cancellation looks like for clients

Clients can manage cancellations easily through the Client Portal or Achieve Client App.

When a client starts the cancellation process for a membership, the required notice period is automatically applied. In the cancellation popup, they’ll see the effective cancellation date along with any applicable fees. Once the cancellation is complete, it will be visible in both the client’s and staff’s accounts.

See Manage your membership as a client for a step-by-step guide to the client cancellation process.

Aligning your waivers and contracts

To avoid compliance risks, review and update your business waivers and membership contracts to ensure they:

Use clear and friendly language instead of complex legal language or unclear instructions.
- For example: You can cancel your membership anytime through the Client Portal or Achieve Client App. A 30 day cancellation notice is required and a $50.00 cancellation fee will be applied.
Disclose important details upfront: such as the notice period, commitment length, cancellation policy, cancellation fees, or refund rules.
Reflect the actual cancellation flow clients will experience online.

Your membership terms in WellnessLiving are displayed at purchase and stored in the client’s account for transparency. For in-person sign-ups, we recommend either showing the terms on-screen or sending a confirmation email after purchase for record keeping.

There are three ways you can send a confirmation email to the client after purchase:

After making a sale:
• Click Email Receipt to send it automatically.
From the client's profile:
1. Find the client using the Search in the Top Nav Bar. On the side menu, click Account > Passes & Memberships, Purchases, or Transactions.
2. Find the Purchase Option and click Action > Email Receipt.
From the All Sales Report:
1. Open the App Drawer then View All > Reports > Sales > All Sales
2. Find the Purchase Option and click Action > Email Receipt.

Clients can access signed contracts anytime in the Client Portal under My Profile > Contracts.

Contract commitments and enforcement

FTC regulations don't prevent your business from enforcing contract terms, as long as those terms are disclosed in advance. In WellnessLiving, you can:

Require clients to complete a minimum term (for example, 3 or 12 months).
Charge a fee for cancellations before the membership ends.
Set a notice period so clients need to cancel before the set time to avoid being charged for the next billing cycle.
Choose whether cancellations take effect immediately or at the end of the billing cycle to allow clients to use their remaining visits for the current cycle.

See Membership Cancellation Fee and Membership Cancellation Behavior to configure these Membership Settings.

Billing and refunds

FTC compliance doesn’t require businesses to provide refunds, but your membership contract or business waiver must be clear.

WellnessLiving allows you to:

Charge the full billing cycle amount, even if cancellation occurs mid-month.
Decline refunds after the billing date, provided clients are informed in advance.

You can specify this behavior in each membership contract or in your business’s waiver.

Staff controls and system behavior

Business owners and staff can configure and monitor:

Membership contract and waiver terms

To add or update a contract:
1. Open the App Drawer then View All > Setup > Store Configuration > Purchase Options and find the membership to modify.
2. Select Clients must agree to a contract, and add or edit the contract content.
3. Click Save. If updating a sold membership, choose to apply changes to existing options and prompt clients to sign the new contract.
To add or update a waiver:
1. Open the App Drawer then View All > Setup > Business > Online Waiver.
2. Select Require clients to agree to the online waiver upon registration.
3. Edit the content under Waiver instructions and Waiver content.
4. Click Save. All clients will be prompted to accept the updated waiver.

Early cancellation fees and notice rules

To set fees or notice periods:
1. Open the App Drawer then View All > Setup > Store Configuration > Purchase Option and find the membership to modify.
2. Under Membership Cancellation Fee:
  - Select Charge a cancellation fee and enter the amount.
  - Select Allow clients to cancel and set REQUIRED NOTICE days.
3. Click Save.

Cancellation records

Staff View: Click the App Drawer then View All > Reports > Sales > Memberships Report.
Client View: Go to My Profile > Contracts in the Client Portal.

Regional compliance considerations

While the FTC governs cancellations nationwide, your state may have additional requirements.

WellnessLiving supports digital compliance but can't guarantee legal coverage. Always check with a lawyer or local consumer protection agency to ensure full alignment.

Best practices for implementation

To get ahead of the compliance deadline and reduce client confusion:

Audit your contracts and revise outdated language.
Test your cancellation flow as if you were a client.
Enable renewal reminders and update notification templates.
Train staff on how to explain client cancellation and locate client contracts.
Communicate updates via your website, emails, and front-desk signage.

Clients appreciate clarity and businesses benefit from consistent enforcement and fewer disputes.