Congressional Democrats are renewing their push for a bill that would require gyms and fitness facilities around the country to carry fitness equipment that’s accessible for people with disabilities and potentially hire additional staff members.

Rep. Mark DeSaulnier (D-Calif.) on Tuesday introduced a bill designed “to promote the provision of exercise machines and equipment, and exercise and fitness classes and instruction, that are accessible to individuals with disabilities.”

DeSaulnier’s bill seems to be a companion to the “Exercise and Fitness for All Act of 2024,” which was introduced by Sen. Tammy Duckworth (D-Ill.) this summer. 

Duckworth’s bill contains language that would require gyms and other fitness facilities to offer “accessible exercise machines and equipment” to people with disabilities. It would also mandate that gyms and fitness facilities have at least one staff member on the floor at all times who is “trained to provide assistance to individuals with disabilities.”

If passed, the bill would direct the United States Access Board, a federal agency devoted to accessibility, to create guidelines for gyms and fitness facilities regarding accessible equipment. 

Duckworth, who has served as a U.S. senator since 2017, is an Iraq War veteran who lost both of her legs and partial use of her right arm in a helicopter accident during the war. She told Forbes this summer that since her injury, she’s encountered difficulties “finding fitness equipment I could use” in gyms. 

Duckworth has introduced the Exercise and Fitness for All Act before, including in 2021.

“I thought, ‘We really need to make sure people can access fitness facilities,’” Duckworth told Forbes regarding her motivation to re-introduce the bill this past summer.

While several legislative hurdles remain before the Exercise and Fitness for All Act of 2024 can become law, the fitness industry is already beginning to grapple with new federal regulations. 

In October, the Federal Trade Commission instituted a new “click to cancel” rule that will make it easier for consumers to cancel paid subscriptions, including gym memberships. The Health & Fitness Association (HFA), the fitness industry’s biggest trade group, has said the rule will create regulatory “burdens that will disproportionately affect small businesses” like mom-and-pop gyms and small fitness studios. 

For more information on federal and state legislation affecting the fitness industry, see here.

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While national laws and regulations like the FTC’s recent ‘click-to-cancel’ rule tend to dominate headlines, the Health & Fitness Association (HFA) is spotlighting key legislative issues at the state level, which often have the biggest impact on fitness businesses’ bottom lines. 

In 2024, the HFA has tracked more than 1,000 bills in 20 states, reviewing each piece of legislation to determine its likely impact on the fitness industry, the organization shared in a recently released 2024 State Advocacy Report.

HFA leaders also met with state lawmakers and partnered with state lobbyists to push for beneficial legislation for fitness businesses across the country. 

According to the report, the HFA secured 48 wins and just one loss on key bills in statehouses across the country in 2024. Among the key legislative issues at issue, the HFA spotlighted:

• Click-to-cancel and auto-renewal
• Price transparency
• Sales tax on memberships
• Data privacy protection
• Cashless retail bans
• Liability waivers

“The advocacy work we’ve undertaken this year is more than just a return on investment – it’s an insurance policy for every fitness business, big or small,” HFA vice president of government affairs Mike Goscinski wrote in a note to members. “By blocking costly and restrictive legislation, we are safeguarding the bottom line of gyms, fitness centers, and health clubs across the country, from boutique studios to national chains. This protection ensures that our industry can continue to thrive, free from unnecessary burdens.”

Click-to-Cancel & Auto-Renewal 

Per the report, the HFA stopped or amended 31 state bills related to click-to-cancel and auto-renewal requirements. Broadly speaking, those types of bills would require fitness facilities to offer more cancellation options to their members, exposing businesses to increased costs and putting them at risk for higher churn rates. 

The HFA secured wins in states including New York, California and Massachusetts on click-to-cancel and auto-renewal issues. According to the organization, California operators would have faced nearly $70,000 annually in additional staffing costs due to proposed phone-staffing requirements if the HFA hadn’t intervened. 

“‘Click-to-cancel’ may sound good in theory, but without considering how such a policy is carried out in today’s complex digital processing world and other practicalities, these proposed laws end up not just harming businesses but also the customers they serve,” Goscinski wrote. 

It’s worth noting that the Federal Trade Commission (FTC) last week introduced a national click-to-cancel rule that will force fitness facilities across the country to make it easier for members to cancel memberships online or over the phone. The rule is bad news for fitness businesses nationwide, exposing them to increased operational burdens and a heightened risk for cancellations, although the HFA pointed to key concessions it helped secure that should soften the blow for gyms and studios. 

Total Pricing Disclosure Requirements

In 2024, the HFA also tackled price-transparency bills at the state level. These bills relate to “total price” disclosure and seek to force fitness businesses to disclose the full cost of all memberships, including fees and service costs. 

According to the HFA, total-pricing bills conflict “with the diverse nature of the fitness industry. This would result in vague pricing, reduced consumer clarity, and potential fines or lawsuits.”

In 2024, the HFA was successful in stopping or amending eight total-pricing bills in five states: Minnesota, Virginia, Colorado, Illinois and New York. 

In 2025, total-pricing bills are expected to be introduced or re-introduced in states including Virginia, Colorado, New Jersey and Maryland, the HFA says. 

Sales Tax on Fitness Memberships

The HFA is also fighting back against state bills that would increase the sales tax Americans have to pay on fitness memberships.

“New or increasing taxes levied on physical activity hamstring an operator’s ability to grow and restrict access for Americans trying to stay healthy,” the organization points out. 

In 2024, HFA leaders took aim at sales-tax bills in Maryland, Connecticut, Oklahoma and Kansas. They were successful in stopping or amending a bill in Maryland. 

Next year, Maryland, New York, California and Minnesota are expected to introduce new sales-tax bills. 

On the other end of the spectrum, lawmakers in some states are working to reduce or eliminate sales tax on fitness facilities. The HFA notes four such bills were introduced this year; the organization says it will work to push those bills over the line in 2025.

Data Privacy, Cash & Minimum Wage 

The HFA also says it has worked to stop or amend bills related to data privacy protections (Washington), cashless retail bans (Florida, Vermont) and minimum wage increases (California). 

The organization also highlights work it’s doing to promote fitness facility subsidies, expanded insurance coverage for fitness businesses, automated external defibrillators (AED) liability protections, and tax credits for military members and their families to join fitness facilities. 

“In Pennsylvania, a bill we supported offered a $600 credit for National Guardsman, reservists, and active military personnel to use at the fitness facility of their choice,” the HFA notes. “The bill passed, and others are being proposed in more states.”

What To Watch for in 2025

Looking ahead to 2025, the HFA spotlights several key legislative issues worth monitoring in statehouses across the country.

Potential risks for 2025 include the expansion of consumer protection laws (click-to-cancel, auto-renewal and member privacy), a push for increased sales tax on fitness memberships and services, and proposed minimum wage increases.

The outcome of elections next month at the state level will likely impact the legislative landscape in 2025.

“A shift in party control in key states could mean more aggressive regulation or, conversely, opportunities for pro-business reforms,” the HFA notes. “No matter the outcome, HFA is prepared to represent and protect your business.”

View the HFA’s 2024 State Advocacy Report in full here

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The Federal Trade Commission (FTC)’s new “click to cancel” rule will make it easier for consumers to cancel paid subscriptions like gym memberships, creating challenges for fitness businesses, although the industry’s biggest trade group says it’s not all bad news.

While the rule introduces new regulatory hurdles that will impact gyms, health clubs and other fitness businesses, the Health & Fitness Association (HFA) says the final version of the rule also contains beneficial language that eases some of the FTC’s originally intended requirements for gym operators. 

“While the finalized rule reflects several of the concerns raised by HFA during the public comment period, marking a collaborative step forward, it remains a new regulatory hurdle that will impact the operations and growth of small businesses in our sector,” the HFA said in an email to members following the ruling. 

Announced Wednesday, the click-to-cancel rule requires that businesses, including gyms, make it as easy for consumers to cancel subscriptions and memberships as it was for them to sign up for them in the first place.

According to the FTC, consumers who enter into subscription agreements online must be able to cancel them online in the same number of clicks.

For subscriptions that were entered into in-person, businesses must give consumers the option to either cancel online or over the phone. 

Key Concessions for Fitness Operators

The rule also contains several provisions that make the subscription process more transparent for consumers, including enhanced content, disclosure and record-keeping requirements for businesses.

It’s here that HFA leaders say they were able to help secure important concessions in the rule’s language that ease some of the burdens on gyms, clubs and studios. 

For example, the FTC dropped a proposed “annual reminder requirement” that would have required businesses to periodically inform consumers of the nature of their subscriptions. 

According to the HFA, the rule also allows for “save attempts,” so long as those attempts don’t impede a consumer’s ability to cancel a membership. This means fitness facilities can still offer options like membership pauses, freezes or tier adjustments to dissuade members from canceling their memberships outright.

“The rule’s adjustments, such as the removal of annual reminder requirements for long-term memberships and the allowance for fitness facilities to engage in customer retention efforts during cancellation requests, are important acknowledgments of the unique operational needs of in-person health and fitness services,” the HFA said in its email. “However, the rule still introduces new burdens that will disproportionately affect small businesses within the industry.”

HFA Flexes Advocacy Muscles

Liz Clark, president and CEO of the Health & Fitness Association, said the ruling marks a “significant moment for the health and fitness industry, as we have successfully worked with the FTC to recognize the distinct differences between our facilities and digital subscription models.” 

“Our recent successes are the result of a strategic shift in focus and unprecedented industry representation that we’ve never had before,” Clark added. “But while these changes mark real progress, the new rule still presents serious challenges for small operators, and we must remain vigilant in addressing these obstacles.”

The FTC originally proposed its click-to-cancel rule in March 2023, pointing to numerous complaints it had received from consumers about hurdles they faced in canceling subscriptions and memberships online or over the phone.

The HFA (then known as IHRSA) and other fitness industry leaders strongly opposed the rule, arguing it “fundamentally misunderstands” the business model of in-person fitness centers, which is different from online-only services. 

HFA leaders argued that gyms shouldn’t be subject to the same cancellation requirements as apps, digital newspaper subscriptions and cable TV contracts, for example. 

Most provisions in the FTC’s click-to-cancel rule will go into effect 180 days after its entered into the federal register, giving fitness businesses some time to plan for the new regulatory reality. 

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As the fitness industry continues its fight for a seat at the table in Washington, it’s doing so in bigger numbers than ever before. 

During the Health & Fitness Association’s 2024 Fly-In and Advocacy Summit held earlier this week, 120 industry leaders descended collectively on Capitol Hill to urge lawmakers to pass legislation including the Personal Health Investment (PHIT) Act.

The 2024 Fly-In was the first major event staged by the newly named Health & Fitness Association, which rebranded from IHRSA earlier this year in an effort to make its mission more easily understood by the government and the general public. 

Turnout for the 2024 event was double that of the previous two Fly-Ins staged by IHRSA, demonstrating the industry’s growing appetite to fight for legislative issues and the broader reach of the Health & Fitness Association under its new name. 

“For the first time, we came to Capitol Hill for our Fly-In under our new name – the Health & Fitness Association – and we received positive reactions to the change,” said Liz Clark, president and CEO of the Health & Fitness Association. “Most people noted it allowed for more immediate clarity about who we are. And we were here under that name in full force with 120 members of the industry meeting with 130 members of Congress or their staff.”

On Wednesday, industry leaders representing clubs, studios and suppliers split up into small groups and met with their state’s members of the House of Representatives and Senate and their staff. The conversations were meant to encourage support for the PHIT Act and other beneficial legislation. 

If passed, the PHIT Act would allow Americans to use pre-tax dollars on things like gym memberships, fitness equipment and youth sports. 

More specifically, the bill would amend the IRS code to treat physical activity as preventive health care covered by flexible spending accounts (FSA) and health savings accounts (HSA), similar to items such as glasses and wellness-related over-the-counter products. It would allow a medical care tax deduction of up to $1,000 per year for qualified sports and fitness expenses ($2,000 for a joint return or head of household).

“The majority of the conversations revolved around co-sponsoring the PHIT Act, but we also asked for their support of our (National Defense Authorization Act) request to help the armed services, support of an act to improve Good Samaritan Laws around the use of (Automated External Defibrillators), and joining the House and Senate health and wellness caucuses,” Clark said.

While Wednesday’s meetings were primarily designed to advocate for the passage of legislation, they also went toward the general goal of creating more awareness of the fitness industry’s importance to the U.S. economy and Americans’ physical and mental health. 

Earlier this week, the Health & Fitness Association released a study showing that private U.S. health clubs and studios have a $22.4 billion impact on the American economy. Key data points from that report were presented to members of Congress and their staff on Wednesday. 

Fly-In attendees also spoke to House and Senate members about why health and fitness activities like going to the gym and playing sports are essential to combatting the growing youth mental health crisis in America. 

The 2024 Fly-In and Advocacy Summit was sponsored by industry leaders including ABC Fitness, ALTA Technology Group, ClubConnect, Daxko, DX Factor, EGYM, FitOn Health, Junk Brands, Matrix Fitness, Myzone, NASM/AFAA, ROR Partners, Studio Grow, Technogym, Tivity Health, Wellhub (formerly Gympass) and WellnessSpace Brands.

Industry leaders hope this week’s event is just the beginning of a larger effort to get health and fitness businesses more recognition from legislators in Washington and in statehouses across the country. 

The Health & Fitness Association’s next Fly-In and Advocacy Summit is scheduled for May 2025.

“We look forward to returning next year and continuing to build relationships that will pay off in the short and long term for the business operators who attend and for the industry overall,” Clark said. 

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Adam Zeitsiff has been in the global fitness industry for almost two decades and is currently Chief Information Officer at LA Fitness. He is also Chair of the National Health & Fitness Alliance (NHFA), which is the state and federal advocacy Advisory Board for the HFA (formerly IHRSA). You can find Adam on LinkedIn here

For almost two decades I’ve had the privilege of serving the health and fitness industry from within. I’ve witnessed firsthand the transformative power of exercise for individuals, families, businesses and our country. As Chair of the National Health and Fitness Alliance and a proud member of the fitness industry, I firmly believe that the Personal Health Investment Today (PHIT) Act is a game-changer, not just for our industry’s growth, but for the wellbeing of all Americans.

The numbers paint a concerning picture: in the U.S., chronic illnesses stemming from inactivity cost over $1 trillion annually. Yes, that’s trillion with a “T.” Beyond the staggering financial burden, the human cost is devastating. Poor health robs our citizens of vitality, productivity and even lifespan. 

And our children are not immune to this crisis, with the childhood obesity rate alarmingly high since the dawn of the COVID crisis. A study by the World Obesity Federation forecasts that 250 million children and adolescents around the world will be considered obese by 2030, with 17 million of those being in the United States (almost 25% of our country’s kids). Just staggering. 

We all intuitively know that regular exercise is a vital pillar of a healthy life, and the science backs it up. Yet, access to fitness facilities, programs, and equipment remains out of reach for many Americans. The PHIT Act tackles this challenge by unlocking pre-tax health savings and spending accounts (HSA/FSA) for the purpose of fitness expenses. For individuals and families, this means up to $1,000 per year per person or $2,000 a year per family could be dedicated to:

• Gym memberships: Joining a fitness facility opens a world of exercise options, expert guidance and community support.

• Fitness classes: From yoga and Pilates to dance and strength training, classes provide structure and motivation.

• Sports and activity programs: These can range from children’s sports leagues to adult recreational activities, promoting healthy competition and social connections.

• Exercise equipment: Investments in youth sports and exercise equipment make activity more accessible to our children.

The PHIT Act benefits our nation in several ways:

• Healthier citizens: When people have resources for exercise, they naturally move more. Improved cardiovascular health, stronger bodies and better mental wellbeing are just some of the rewards. This translates to fewer sick days, reduced healthcare costs and a more robust American workforce.

• A matter of National Security: A study performed by the U.S. Army Public Health Center, the American Heart Association and The Citadel found that 27% of all 17-to-24-year-olds are too overweight to qualify for military services. In addition, 47% of all males and 59% of all females failed to pass the Army’s entry-level fitness test upon entry into the service. This is SCARY and translates to a significant pool of potential recruits unable to serve due to preventable health issues. The PHIT Act can play a vital role in reversing this trend by promoting physical activity from a young age, fostering a generation better prepared to defend our nation.

• Stronger families: Exercise as a family creates healthy habits and builds bonds. The PHIT Act helps make sports and other youth activities more affordable for parents and kids, nurturing lifelong physical and social skills. 

• Economic growth: While less tangible, the ripple effects are enormous. A fitter America means more productivity and fewer insurance claims. The fitness industry, already a major employer, will expand and generate new jobs.

The fitness industry has faced setbacks over the last few years, but our role in society has never been more crucial. In the wake of a pandemic that emphasized health disparities, we’re ready to help America rebuild healthier bodies and minds. However, we can’t do it alone. The PHIT Act makes consumers our partners by empowering them to choose fitness. Let’s clarify a few key points:

• Choice remains paramount: No one is mandated to spend their HSA/FSA funds on fitness. But for those who value exercise, the opportunity would exist.

• This is not a bailout: Strong fitness companies will thrive with broader consumer access. The Act doesn’t subsidize poorly run businesses but rather invests in Americans’ choice to pursue wellness.

• Tax implications are minimal: The revenue lost is far outweighed by the potential savings in healthcare costs down the line.

I urge every citizen, whether a gym enthusiast or someone just starting their health and fitness journey, to contact your elected representatives and express your support for the PHIT Act.

This legislation is more than industry politics; it’s a matter of investing in the future health, prosperity and happiness of our great nation.

Let’s make physical activity accessible for all. Let’s pass the PHIT Act.

The post The PHIT Act: A Win-Win for American Health & Wellness appeared first on Athletech News.

The Health & Fitness Association, formerly known as IHRSA, is hosting its annual Fly-In and Advocacy Summit May 7-8 in Washington, D.C., where fitness leaders and executives will work to make the industry’s voice heard on Capitol Hill and push for the passage of key legislation.

During the two-day event, the Health & Fitness Association will reveal important economic impact data demonstrating the contributions of the health and fitness industry to the U.S. economy. There will be an emphasis on empowering attendees to educate lawmakers on the mental and physical health benefits of physical activity and deepen relationships with members of Congress and their staff.

Liz Clark, Health and Fitness Association president and CEO, remarked that the summit serves the entire health and fitness industry and has a significant mission.

“As we step into this new era, it’s imperative that we make our collective, unified voice heard on Capitol Hill,” Clark said. “This event provides a crucial platform for industry leaders to engage directly with lawmakers and advocate for policies that support the growth and vitality of our sector.”

Fly-In and Advocacy Summit attendees will also help advance support of the PHIT Act to expand HSA/FSA eligibility for physical activity and youth sports expenses and seek national liability protections regarding the use of automated external defibrillators (AEDs).

“Our goals are aligned with our global advocacy pillars, dedicated to championing initiatives that unify our industry’s voice, enhance consumer access to wellness opportunities, and foster a business-friendly environment conducive to innovation and growth,” said Mike Goscinski, vice president of government affairs for the Health & Fitness Association. “Through collaborative efforts and strategic advocacy, we will position the health and fitness sector as a powerful force for positive change, promoting preventive health benefits, equitable access and economic prosperity.”

The 2024 Fly-In and Advocacy Summit is sponsored by fitness industry leaders such as ABC Fitness, ALTA Technology Group, ClubConnect, Daxko, DX Factor, EGYM, FitOn Health, Junk Brands, Matrix Fitness, Myzone, NASM/AFAA, ROR Partners, Studio Grow, Technogym, Tivity Health, Wellhub (formerly Gympass) and WellnessSpace Brands

Registration for the Fly-In and Advocacy Summit is free for Health & Fitness Association members and costs $299 for non-members. 

Click here for the full Fly-In and Advocacy Summit agenda.

*This story has been updated to include additional event sponsors.

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The leading global community of health and fitness professionals founded in 1981 as IRSA prior to transitioning to IHRSA in 1994 has entered a new chapter with a new moniker: Health & Fitness Association.

Liz Clark, president and CEO, unveiled the new name during her President’s Address on Wednesday, March 6, before the organization’s 2024 keynote at its annual convention and trade show, held this year in Los Angeles. 

“Every industry evolves, and the next step of evolution for our association is to have a name that exactly reflects the breadth, diversity and consumer-oriented focus of the businesses in our sector,” Clark said. “The Health & Fitness Association is clear, compelling, and can also be easily translated into any language, which is vital given the international reach of the association and the global operations of our members.”

As a global community of industry leaders supporting an association committed to advocacy, education and research, Clark indicated that the new name reflects the group’s ongoing devotion to an ever-changing landscape.  

“This decision is especially important when we focus on the association’s primary mission — advocacy to government, media, NGOs and other key stakeholders around the world,” she continued. “From today on, there will be no question about the mission, vision and clarity of purpose of the Health & Fitness Association.”  

Although IHRSA helped accelerate the fitness industry’s return to normalcy in an unprecedented post-pandemic environment, Clark emphasized that the Health & Fitness Association is now aiming to move the industry from surviving to thriving and beyond.

“Now is the time to crank up the incline and accelerate the pace,” Clark told IHRSA attendees. “Your businesses are becoming more sophisticated and innovative. Record numbers of consumers rely on us to make their health goals a reality. This industry-consumer connection is powerful.”

In addition to pursuing goals that support the best possible business climate for the industry, Clark also underscored the work IHRSA has done in Washington, D.C.

“We have dramatically increased our media exposure and recognition,” Clark said. “This is why the White House, the CDC, congressional leaders and policymakers now seek out our team for input. We are not just finding respect, we are earning it — and we are just getting started.”

Health & Fitness Association will adopt the hashtag #HealthFit and roll out a complete brand “look” across its website, social media platforms and other materials in the coming months.

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New Jersey Governor Phil Murphy has signed a consumer-friendly law streamlining gym membership cancellation policies in the Garden State, preventing in-person-only termination rules and allowing consumers to terminate automatic gym renewal subscriptions easily. IHRSA, a not-for-profit trade association representing the global health and fitness industry, initially expressed concerns with the law but said it was able to work with the state to secure a “workable solution.”

Starting April 8, gym memberships and subscription service contracts that are entered into online in the Garden State must require an online cancellation option that is not only accessible but prominently displayed on the website, in the account profile of the fitness consumer, or can be terminated through an email template provided by the gym or fitness service.

“By signing this bill into law, New Jerseyans will be protected from confusing, misleading, and inflexible subscription cancellation policies,” Governor Murphy said. “For too long, members have faced difficulties when attempting to cancel a membership they entered into online.”

Assemblyman Paul Moriarty, a primary sponsor of the bill, noted that he had heard many consumer complaints from those having trouble canceling gym memberships, especially during the pandemic. 

“If a gym can accept new members online, those members should also be able to cancel online,” Moriarty said. “Now that this bill is law, they’ll have an important financial protection.”

A Complex Legislative History

First introduced in 2022, the ‘click-to-cancel‘ bill became the cause of concern for some in the fitness industry. IHRSA submitted written testimony to the New Jersey Senate, urging officials to hold consideration of the bill, such as the “administrative burden” that online cancellation of auto-renew memberships and month-to-month accounts may cause for certain gyms and health clubs.

Mike Goscinski, VP of government affairs for IHRSA, testified before the New Jersey Senate Commerce Committee last month, noting that the passage of the bill would particularly impact smaller and independent fitness operators.

Goscinski worked with the New Jersey legislature to reword the bill to clarify that it is “click to initiate termination,” allowing “opportunities for saving memberships and reminders of agreement terms for processing final payments before cancellation.”

Model for the Future?

“We appreciate (Senator Gordon M. Johnson’s) willingness to collaborate with IHRSA on the final language signed into law this week,” Goscinski told Athletech News. “We are excited that our advocacy efforts have resulted in a public policy victory, providing a workable solution for the health and fitness industry and establishing a model for how states should approach legislation regarding membership cancellations.”

Referring to it as a “workable solution,” IHRSA emphasizes that the new law only applies to memberships entered into online and that it has secured flexibility regarding cancellation methods and its location on business websites. IHRSA also advocated and secured a 90-day implementation timeline, giving businesses until April 8 to comply instead of the originally proposed immediate enactment.

“IHRSA Government Affairs plans to leverage this success as a template when engaging in discussions with state elected officials, advocating for business-tenable solutions,” Goscinski wrote in a note to IHRSA members.

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A new bill in New Jersey that would require an online cancellation option for fitness consumers looking to cut ties with their gym memberships is headed to the desk of Governor Phil Murphy for final approval. 

While the consumer-friendly bill may be a welcome respite from those who have had a difficult time canceling a gym or health club membership, IHRSA, a not-for-profit trade association representing the global health and fitness industry, has outlined key concerns regarding the ‘click-to-cancel‘ bill in NJ.

First introduced in 2022, Bill A3892 would require health clubs to provide an easy and prominently displayed pathway for consumers to cancel the automatic renewal of services that were entered into online and provides additional options for canceling health club services contracts by mail or over the phone in certain circumstances.

IHRSA, which submitted written testimony to the New Jersey Senate and urged officials to hold consideration of the bill, takes issue with what it describes as the significant “administrative burden” that online cancellation of auto-renew memberships and month-to-month accounts may cause for certain gyms and health clubs.

The trade association also points to the bill making changes to the ability to cancel during the three-day cooling-off period and notes that the bill’s passage would require changes to the membership agreement, cancellation option, website and other technical items before a possible “click-to-cancel” final rule from the Federal Trade Commission, which IHRSA says would also create an administrative headache for fitness operators.

Mike Goscinski, VP of government affairs for IHRSA, testified about the bill before the New Jersey Senate Commerce Committee last month. 

“Passage of the bill would require some health and fitness facilities in New Jersey, mostly the smaller, independent and franchisee operators, to make costly administrative and technological changes prior to any forthcoming requirements from the federal government, that may be duplicative and contradictory,” Goscinski said in a statement.

IHRSA also outlined other industry concerns, such as the potential revenue loss of gyms and the operational costs to implement and maintain a secure online cancellation system. There are also possible legal matters that may arise should a fitness operator face challenges in adequately creating a system to comply, and smaller gyms may have additional challenges in implementing and maintaining a cancellation system that larger chains may not — which IHRSA says could create inequity in the fitness industry. 

According to a recent post on IHRSA’s LinkedIn page, Goscinski has worked with the New Jersey legislature to reword the bill to clarify that it is “click to initiate termination” by notifying customer service through either a customer account on a club’s website or the user settings on a consumer’s smartphone or tablet — or a termination email formatted and provided by the club that can be emailed to the service provider without requiring additional information from the account holder.

The trade association issued a report in October demonstrating that in-person fitness has rebounded from the pandemic on a global scale, with members flocking to gyms and health clubs in remarkable numbers since COVID-19 requirements like masks and social distancing have subsided.

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