New York Governor Kathy Hochul has signed five new laws in the state, including one requiring gyms and health clubs to process membership cancellations and issue refunds within ten business days of receiving notice.
Effective February 1, the new law – introduced at a time when gyms and health clubs are hopeful to welcome new and returning members embarking on health and fitness resolutions – also gives consumers the flexibility to cancel online and supports a three-day “cooling off” period where consumers can terminate a newly-signed contract without penalty.
“At a time when New Yorkers are experiencing the devastating effects of rising prices, it’s important that I do everything I can to put more money back in their pockets,” Governor Hochul said. “With the signing of this legislative bill package, we’re continuing to make progress in making New York more affordable.”
Assemblyman Jeffrey Dinowitz, who sponsored the bill, noted that its signing marks a significant step forward in modernizing health club contract practices in the state.
“By expanding cancellation methods to include internet options and shortening refund timelines for the health club to pay back customers, we empower consumers with the tools they need to avoid unnecessary financial burdens,” Dinowitz said. “This legislation concerns fairness, accessibility and bringing cancellation options into the 21st century. I’m proud to see New York leading the way in consumer protection.”
State Senator Roxanne J. Persaud, who co-sponsored the bill, applauded Hochul’s support.
“Health club memberships should be an asset to consumers, not a burden,” Persaud said. “This bill ensures that we empower New Yorkers to make the best choices for their health and well-being without being locked into contracts that no longer serve their needs. By expanding the options for cancellation and making the process easier, we are standing up for consumers and ensuring they can make decisions that fit their lives. I thank Governor Hochul for signing this legislation.”
New Jersey took similar action last year, prompting the Health & Fitness Association (formerly IHRSA) to advocate for fitness businesses and ultimately work with the New Jersey legislature to rewrite a bill requiring gyms and club operators to include a “click to cancel” provision.
The association, which serves the global health and fitness industry with advocacy, education and networking opportunities, is preparing to intervene again. In 2024, HFA tracked more than 1,000 bills in 20 states and met with lawmakers to address policies regarding auto-renew, sales tax on memberships, liability waivers and more.
In its 2024 State Advocacy Report, HFA highlighted legislation it supported: AED liability protections, fitness facility subsidies and tax credits for military personnel who are gym members, while also noting that it aims to be “proactive” in the consumer protection space. As HFA points out in the report, the legislation it opposes may be well-intentioned, but without considering real-world complexities, it could ultimately harm both businesses and their consumers.
“HFA is grateful that some progress was made in protecting multiple cancellation options for members,” HFA vice president of government affairs Mike Goscinski tells Athletech News. “However, this legislation goes beyond the Federal Trade Commission’s Click-to-Cancel rule, creating unnecessary burdens for fitness facilities.”
Goscinski acknowledged that while HFA had made significant progress in achieving important clarifications, there is still work to be done.
“We look forward to collaborating with lawmakers in the 2025 legislative session to seek further amendments that balance consumer protections with operational practicality,” he added.
