3 things you can do now to navigate the FTC's Click-to-Cancel Rule

The Federal Trade Commission (FTC) has recently enacted a new regulation in the United States designed to streamline subscription management for consumers. This initiative, called the Click-to-Cancel Rule, is expected to significantly impact membership-based organizations such as YMCAs, Jewish Community Centers (JCCs), and other community associations.

What is the FTC's Click-to-Cancel Rule?

The Click-to-Cancel Rule is an initiative by the FTC that requires businesses to offer consumers an easy and accessible way to cancel subscriptions, recurring memberships and enrolments. This means that organizations must provide clear and transparent information about how to end a subscription, as well as make it simple for customers to do so. The goal is to ensure a transparent, user-friendly experience for consumers, minimizing frustration and reducing complaints. This rule goes into effect in April 2025.

Just a quick note—while we’re here to offer helpful insights, we’re not legal experts. For full details on this policy, we encourage you to read the press release and the complete guidelines on their website for the most accurate information and a clear understanding of the FTC’s requirements.

What impact will FTC's Click-to-Cancel have on YMCAs and JCCs?

What does this mean for organizations like YMCAs, Jewish Community Centers, or recreation centers? These organizations, which often handle monthly memberships and programs, will need to ensure they clearly communicate how members can cancel their memberships or subscriptions at any time. They should also provide a straightforward explanation of any fees and charges related to cancellation.

The good news is that many YMCAs and JCCs already have some type of cancellation process in place. But to align with FTC requirements, it may also require reviewing and updating terms of service, membership agreements, and other related documents. It's quite likely that putting this into practice will require new processes and system improvements.

This is also an ideal time to review and, if necessary, enhance the technology systems and tools that members and staff interact with—such as your CRM, website, or online community portals—to make the cancellation process smoother and ensure compliance with the new requirements.

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Three steps to prepare your YMCA or JCC for FTC’s Click-to-Cancel Rule

1.  Evaluate your current cancellation process

• Determine how members currently cancel memberships, programs, or services.
• Identify where and how cancellations take place: through a phone call, a front desk visit, or a self-service portal.
• Measure the ease or difficulty of canceling a recurring membership for customers.

Why is this important? Understanding your current process will help you establish a clear baseline of what you already do—or need to do—and identify any potential issues or gaps that will need to be addressed to make sure you're meeting the FTC’s guidelines for easy and accessible cancellations.

What you can do now: Conduct a thorough review of your current cancellation process from a customer’s perspective. Start by examining all relevant terms of service, membership agreements, and any marketing or communication materials related to memberships or subscriptions. Take inventory of these documents to ensure each one is up-to-date and clearly outlines cancellation options. This will help you stay fully compliant with the new FTC regulations and provide members with clear, transparent information about their cancellation rights and process.

2. Dig into your methods for tracking and reporting cancellations

• How do you document a member's cancellation?
• Do you track the reason for their cancellation and the method they used?
• How do you report cancellations to your team?

Why is this important? Having a clear and consistent process for tracking and reporting cancellations—regardless of how customers choose to cancel—is going to be critical. While this approach ensures compliance, it also provides valuable insights into member behavior and the reasons behind cancellations. Collecting feedback during the cancellation process can help identify areas for service improvement and reduce future churn.

What you can do now: Take a closer look at how you’re currently tracking cancellations. Identify the specific data you’re monitoring—such as reasons for cancellation, timing, and customer feedback—and consider how this information is (or should be) shared across teams. Look for opportunities to standardize your process for documenting cancellations and capturing these key details for consistency and improving insights across your organization.

3. Review and revise your current policies

• Are membership terms and conditions easy to find and understand?
• Do you require written notice for cancellations?
• Is your staff knowledgeable about your policies and procedures so they can effectively assist members?

Why is this important? Having a clear, easy-to-understand cancellation policy helps prevent misunderstandings or confusion with members. Under the new regulations, you'll need to clearly outline your cancellation policies and procedures, so it's essential to review your current policies to ensure they align with these requirements.

What you can do now: Review the language in your cancellation policy to ensure it’s clear, concise, and easy for members to understand. Make sure it’s prominently displayed on your website, in membership agreements, and at physical locations. Adding a FAQ section on your website to address common questions—like how to cancel, potential fees, and what happens to unused membership benefits—can also be helpful. Just as important, provide your staff with the tools and resources they need to effectively assist members with cancellations.

Traction Rec’s approach to supporting customer compliance

At Traction Rec, we know how essential transparency and positive member engagement are to your community, and we’re here to support you every step of the way. Our goal is to enable your organization with the functionality and resources needed to make compliance a seamless experience for both your team and community members.

We’re introducing new features for simple, member-friendly cancellations

Traction Rec is excited to introduce new product features designed to help your organization comply with click-to-cancel regulations. Our platform will feature a streamlined cancellation process for enhanced efficiency, along with multiple options to suit your needs.

• An automated solution that allows members to cancel their memberships through a self-service portal.
• A manual option where members can initiate the cancellation process, with staff reviewing requests through workflows and prompts before finalizing.
• Leveraging the flexibility of Salesforce, our customers will also have the opportunity to collaborate with our team to develop a custom solution if the standard options do not fully meet their unique needs.

Personalized assistance, helpful resources, and ongoing support

To prepare our customers and their teams, we are offering personalized support from our Engagement Team, complemented by a suite of resources and learning material to optimize tool usage in our Customer Success Community Portal.

Within our vibrant customer community, there are plenty more opportunities to collaborate with us, ask questions and connect with YMCAs, JCCs, and other customer organizations to help navigate this change. That includes our Virtual Monthly Meetups, and engaging in the Customer Community, and Support channels on Slack —all designed to make it easy for customers to work together and share ideas.

Prepare your organization by starting today

Prepare your organization by contacting our Engagement Team today for a consultation on configuring your click-to-cancel processes. We're here to support you every step of the way.

As the new rule approaches, it's the perfect time to get ahead and ensure your organization will continue to deliver exceptional member experiences. Let's make it happen!