Sponsors (19)
The bill strengthens consumer protections and enforcement against deceptive automatic renewals, at the cost of higher compliance burdens for subscription businesses and a risk that some companies will pull back on negative‑option offerings, reducing consumer choice.
Consumers (including low-income individuals and general subscription users) gain stronger protections because the Negative Option Rule becomes enforceable law, reducing hidden automatic renewals and confusing subscription terms.
Consumers harmed by deceptive negative-option practices can seek remedies because the FTC must enforce the rule using its full enforcement powers, including penalties and injunctions.
Some companies (including small subscription providers) may reduce or eliminate negative-option offerings, which could limit consumer choices for subscription-based services.
Businesses offering subscription or trial services (particularly small businesses) face increased regulatory compliance costs and potential fines because the rule is now enforceable under the FTC Act.
Based on analysis of 2 sections of legislative text.
Gives the FTC's Negative Option Rule the force of federal law and makes violations enforceable under the FTC Act as unfair or deceptive acts.
Introduced July 29, 2025 by Brad Sherman · Last progress July 29, 2025
Makes the Federal Trade Commission's "Negative Option Rule" (published Nov 15, 2024) into federal law and treats violations of that rule as unlawful unfair or deceptive acts under the FTC Act. It directs the FTC to enforce the codified rule using the full range of authorities, penalties, and remedies available under existing FTC law. This does not appropriate new funds or create other programs; it simply gives the agency rule the force and effect of statute and attaches FTC Act enforcement tools to violations.