Directs that the Federal Trade Commission’s "Negative Option Rule" (published in the Federal Register on November 15, 2024) is disapproved and shall have no force or effect, effectively nullifying that specific FTC rule. The text expresses Congress’s intent to invalidate the named rule so it cannot be applied or enforced.
Congress disapproves the Federal Trade Commission rule published at 89 Fed. Reg. 90476 (November 15, 2024), known as the "Negative Option Rule," and declares that the rule shall have no force or effect .
Read twice and referred to the Committee on Commerce, Science, and Transportation.
Who is affected and how:
Businesses and platform operators that use negative-option practices (for example, automatic renewals, trials that convert to paid subscriptions, or opt-out billing) are directly affected because they will not be required to comply with the specific provisions of the FTC's nullified rule. That reduces near-term compliance costs and obligations tied to that rule.
Consumers who would have been covered by the FTC’s Negative Option Rule may lose the specific protections, disclosures, or procedural safeguards the rule would have required. This could preserve the pre-rule status quo for consumer protections unless other laws or agency actions apply.
The Federal Trade Commission is affected in that the named rule is removed from its enforcement toolkit; the agency cannot enforce or implement that particular rule while it is disapproved by this legislation.
E-commerce platforms, advertisers, and sellers that rely on negative-option sales models are likely to see the clearest regulatory impact because the nullification maintains existing regulatory requirements rather than imposing the new rule's changes.
Overall effect: the legislation preserves the regulatory status quo in place before the named rule took effect (by removing that new rule), shifting immediate compliance and enforcement outcomes in favor of regulated businesses and potentially reducing new protections the rule would have provided to consumers. The action is narrowly targeted and does not itself create alternative rules, funding, or new federal mandates on states or localities.
Last progress June 9, 2025 (8 months ago)
Introduced on June 9, 2025 by Mike Lee
Updated 2 days ago
Last progress June 9, 2025 (8 months ago)