Lina Khan vs Planet Fitness - BIG by Matt Stoller

On Wednesday, the Federal Trade Commission put out a regulation to make it easier to cancel subscriptions, what is called the “Click to Cancel” rule. In this piece, I’ll go over the rule, why it matters, but also, the quiet and nasty campaign against it. Because while it would seem obvious that companies like Planet Fitness, the notorious gym franchisor that allegedly scams customers by making it excruciatingly difficult to cancel a membership, shouldn’t be able to do what they do, there is a reason they can.

Let’s start with the regulation itself, what in the industry is called “The Negative Option Rule.” It’s actually really simple, and just says that it should be as easy to cancel a subscription as it was to sign up for it. There are some additional elements, like firms have to tell consumers they are subscribing to something, no deception on important information, and customers have to agree to pay before corporations can bill them. Basically, just don’t act like Planet Fitness.

Unlike most of the laws and rules around political economy that affect our lives, the FTC’s Click to Cancel rule got wide coverage, because it’s something that is so relatable. Both President Biden and VP Harris tweeted it out, as did many many politicians. It was front-page news on the Wall Street Journal and across the media; the Today Show did a segment, digging up an old Friends episode, where Chandler Bing tries to cancel a gym membership, to explain the policy.

Leave a Comment