Last progress June 9, 2025 (8 months ago)
Introduced on June 9, 2025 by Laurel Lee
Referred to the House Committee on Energy and Commerce.
Disapproves and nullifies the Federal Trade Commission’s "Negative Option Rule" (89 Fed. Reg. 90476; Nov. 15, 2024), removing it from the books so it has no force or effect. The resolution does not add new requirements, dates, or spending; it only cancels that specific FTC rule.
Congress disapproves the rule submitted by the Federal Trade Commission relating to 89 Fed. Reg. 90476 (November 15, 2024), titled "Negative Option Rule", and declares that the rule shall have no force or effect.
Who is affected and how:
Platform operators and companies that use automatic renewals or subscription ("negative option") billing: Most directly affected because the resolution prevents the new rule from imposing specific notice, consent, or billing procedures; these businesses avoid compliance costs and procedural changes the rule would have required.
Businesses (general) and small businesses: Firms that sell goods or services with recurring payments or automatic renewals will not have to implement the rule’s requirements; small businesses may avoid administrative burdens but also lose a clear federal standard that could have guided best practices.
Consumers: Potentially less protection against unclear or recurring charges that the FTC rule was designed to address; consumer remedies remain those available under existing statutes and FTC enforcement actions absent that specific rule.
Federal agencies and regulatory process: The FTC loses a concrete, published rule that would have established uniform requirements for negative‑option practices; the agency retains its broader statutory authority to pursue other rulemaking or enforcement but cannot enforce the vacated rule.
Legal and marketplace certainty: Businesses get immediate regulatory relief and avoid statutory compliance costs; consumer advocates and some states or local regulators may view this as a reduction in consumer protections. The resolution does not create a replacement rule or guideline, so issues around disclosures, cancellations, and renewals will continue to be governed by prior law, enforcement discretion, and any state rules.
Overall, the primary near-term effect is regulatory: obligations the FTC rule would have imposed do not apply, benefiting businesses from lower compliance obligations while removing prospective rule-based consumer protections. There are no budgetary, grant, or appropriation consequences specified in the text provided.
Updated 1 day ago
Last progress June 9, 2025 (8 months ago)