What Happened
The Federal Trade Commission (FTC) has released its final rule on Unfair or Deceptive Fees, targeting practices like "bait-and-switch" pricing and hidden fees. Thanks to the Health & Fitness Association's (HFA) strong advocacy—including formal comments submitted earlier this year and my testimony before the FTC in March—the health and fitness industry is fully exempt from this rule.
Why It Matters
Without HFA's engagement to secure this exemption, this rule would have imposed significant compliance burdens, threatened advertising capabilities, and ultimately stifled growth, innovation, and member engagement.
The original rule was broadly written and could have been devastating for the health and fitness industry had it included membership-based businesses such as gyms, studios, and fitness facilities.
HFA highlighted critical concerns, including:
- Existing State Laws: Health and fitness facilities already operate under state-specific regulations that mandate clear price disclosures.
- Ambiguous Definitions: The rule's unclear language around “total price” and “hidden fees” could have led to unnecessary legal disputes, consumer confusion, and disruptions to advertising.
- Unworkable Compliance: Calculating a static “total price” for optional services—such as personal training, fitness classes, or other products—purchased at a member’s discretion would have been impractical and costly, particularly for small businesses and franchisees.
By securing this exemption, we prevented a regulation that would have undermined your ability to operate effectively and deliver essential health and fitness services to your communities.
What's Next
HFA will continue to advocate at the federal level to oppose regulations like this that could harm the health and fitness industry.
We will use the FTC's determination to reinforce our position in state legislatures, ensuring they do not attempt to impose similar burdensome rules. This exemption achieved at the federal level will serve as a powerful precedent to protect your business and support industry growth nationwide.
