🆕 Online Membership Cancellation to Support FTC Compliance (Click-to-Cancel Rule)

 

To help your business stay compliant with the U.S. Federal Trade Commission’s (FTC) new Click-to-Cancel rule, Hapana is introducing a new setting that allows members to cancel their online memberships through the same method they used to sign up.

 

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🧐 What is the FTC’s “Click-to-Cancel” Rule?

 

The FTC now requires that cancelling a membership must be as easy as signing up—especially when done online.

If a customer joins via your website, app, or API, they must also be able to cancel using that same channel, without needing to call, email, or take additional steps.

Read the full announcement →

 

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✅ New Setting: Online Cancellation for All Memberships Sold Online

 

We’re rolling out a global setting that simplifies compliance for you:

 

Setting Name:

 

Enable All Memberships Sold Online to be Cancelled by Member

 

Where to Find It:

 

Business Dashboard → Payments → Retail Settings → General Settings

 

What It Does:

• Applies to memberships purchased online (via App, Embed, or API)

• Allows those memberships to be cancelled online by the member

• Overrides any cancellation rules set at the individual membership level

 

⚠️ Important: This setting is OFF by default.

You’ll need to manually enable it once the feature is live. We’ll send out release notes and a setup guide to help.

 

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🕒 What You Can Do Right Now

 

Until the new global setting is available, you can still enable cancellation manually on a per-membership basis.

 

How To Enable Per-Membership Cancellation:

1. Go to the membership configuration

2. Navigate to Retail Settings

3. Toggle “Enable Clients to Cancel Membership” ON

 

This lets members cancel that specific membership online.

 

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⚠ Known Limitations (Before Full Release)

 

At present, online cancellation won’t work for:

• Memberships with early cancellation fees

• Members with failed or outstanding payments

 

In these cases, cancellation must be handled manually.

 

Once the new global setting is live, members will be able to cancel even if those conditions exist—but your team will still need to manage any fees or payments manually (until further automation is released).

 

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🔜 Coming in Q2 2025

 

We’re working on an improved cancellation flow that will:

• Prompt members to pay any early cancellation fees

• Require resolution of failed payments before confirming cancellation

 

This update will reduce admin work while keeping your business rules intact.

 

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💬 Need Help?

 

If you have questions or need help enabling these settings, reach out to your Account Manager or contact Hapana Support.

 

We’re here to help you stay compliant and make the member experience as smooth as possible.