The landscape for pickleball clubs, including membership-based facilities and franchises, is changing with the Federal Trade Commission’s (FTC) new ‘Click to Cancel’ rule. Effective January 14, 2025, with a full compliance deadline of May 14, 2025, this rule is designed to make canceling memberships and subscriptions as easy as signing up. Here’s what pickleball club owners need to know to stay compliant and ensure a smooth transition for their members.
What Is the ‘Click to Cancel’ Rule?
The new rule applies to all businesses using negative option marketing, which includes recurring memberships and automatic billing — common models in the pickleball industry. According to a press release by the FTC, the rule prohibits deceptive cancellation practices and requires that businesses:
- Offer an Easy Cancellation Process: If members sign up online, they must be able to cancel online with minimal steps.
- Obtain Clear and Informed Consent: Businesses must explicitly disclose material terms before charging a member.
- Avoid Misrepresenting Membership Terms: Any misleading claims about pricing, benefits, or renewal policies could result in FTC penalties.
What This Means for Pickleball Clubs
Membership models are at the core of many pickleball clubs, providing critical revenue for court rentals, leagues, events and coaching programs. Whether your club offers open play, tournaments or premium membership perks, this new rule impacts how you handle memberships. Here are some key takeaways:
1. Ensure Your Cancellation Process Is as Simple as Sign-Up
If a player can join your club or sign up for a membership in a few clicks, they should be able to cancel just as easily. Complicated cancellation processes — such as requiring in-person visits, mailed letters or multiple confirmation steps — will no longer be acceptable under the FTC’s guidelines.
2. Update Your Terms of Service and Membership Agreements
Review how you present membership terms and ensure full transparency in pricing, auto-renewal details and cancellation policies. The FTC is cracking down on businesses that bury these details in fine print.
HFA’s Take on the Rule: A Mixed Bag for Fitness and Pickleball Clubs
The Health & Fitness Association (HFA) played a key role in advocating for industry-friendly modifications to the rule. They successfully lobbied for the removal of annual reminders for long-term memberships and secured permission for businesses to engage in customer retention efforts — important wins for pickleball clubs that rely on long-term member engagement.
However, HFA warns that the rule still presents operational challenges, particularly for independent clubs and smaller facilities. The biggest concerns include:
- Increased administrative burden to ensure seamless online cancellations.
- Potential revenue loss if members cancel impulsively without retention discussions.
- Compliance risks if businesses fail to properly update their policies and systems.
Steps to Ensure Compliance Before the May 14 Deadline
To avoid fines and operational disruptions, take these proactive steps:
- Audit Your Cancellation Process: Test your current process and ensure it meets the new ease-of-use standard.
- Update Your Website and Member Portals: Ensure that online cancellations are as straightforward as sign-ups.
- Revise Membership Agreements: Clearly communicate auto-renewal terms and the cancellation process.
- Train Your Team: Educate staff on compliant retention conversations and ensure they understand member rights.
- Monitor FTC Updates: Stay informed on any clarifications or enforcement actions related to the rule.
The ‘Click to Cancel’ rule underscores the increasing focus on consumer-friendly business practices. While it introduces new compliance challenges, it also presents an opportunity for pickleball clubs to strengthen trust with members. By making cancellations simple and transparent, clubs can reinforce their commitment to member-first operations and long-term community engagement.
Stay proactive, adapt your systems before the May 14 deadline, and continue providing outstanding service under the new regulatory landscape.
This does not constitute legal advice. Please consult with a professional to ensure true compliance.
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With over a decade spent covering the business side of sports and fitness, Rachel Chonko brings a wealth of experience and a true passion for active communities to Peake Media. As Editor-in-Chief, she’s focused on helping pickleball clubs and fitness facilities thrive, from guiding growth strategies to showcasing the latest industry trends. Rachel also hosts the Club Solutions Magazine Podcast, where she interviews leaders in fitness and pickleball to share insights and success stories with the wider community to give her listeners a competitive edge.
After taking up pickleball herself, Rachel has come to appreciate the sport’s unique blend of social connection and active living — a mix that’s perfectly in line with her editorial philosophy. Connect with her on LinkedIn, or check out her articles below for a deep dive into the energy and culture driving pickleball’s rapid rise.
