SJRES 57119th CongressIn Committee

A joint resolution providing for congressional disapproval under chapter 8 of title 5, United States Code, of the rule submitted by the Federal Trade Commission relating to "Negative Option Rule".

Introduced: Jun 9, 2025

Economy & Taxes

Standard Summary

Comprehensive overview in 1-2 paragraphs

This joint resolution uses the Congressional Review Act (chapter 8 of title 5, United States Code) to disapprove the Federal Trade Commission’s rule relating to the so-called “Negative Option Rule.” Specifically, it states that Congress disapproves the FTC rule published at 89 Federal Register 90476 on November 15, 2024, and provides that the rule “shall have no force or effect.” If enacted, the measure would block the rule from taking effect and would nullify its protections; if not enacted, the rule could still take effect under normal rulemaking timelines. The bill was introduced in the Senate by Senator Mike Lee (as indicated by the text) on June 9, 2025, and referred to the Committee on Commerce, Science, and Transportation. It currently has the status of “Introduced,” with no further action yet indicated.

Key Points

1Disapproval under the Congressional Review Act: The resolution formally disapproves the FTC’s Negative Option Rule and nullifies it, meaning the rule would have no force or effect if the resolution becomes law.
2Targeted scope: The disapproval applies only to the specific FTC rule titled “Negative Option Rule” (89 Fed. Reg. 90476, November 15, 2024), not to other FTC rules or authorities.
3Mechanism and consequence: Passage of the joint resolution would block the rule from taking effect; otherwise, the rule could proceed under normal rulemaking timelines.
4Legislative process and ultimate effect: For the rule to be blocked, Congress would need to pass the joint resolution and have it signed into law (or overcome a veto). The President’s signature is not guaranteed, so the rule could still be upheld if the resolution fails.
5Context of the subject: The rule concerns “negative option” marketing practices (such as auto-renewals, trial offers, or other arrangements where goods/services are provided or billed unless the consumer affirmatively declines or withdraws). The resolution seeks to remove regulatory requirements associated with such practices.

Impact Areas

Primary group/area affected- Consumers: Potential changes in protections related to negative option marketing, including disclosures, consent, opt-out mechanics, and renewal practices.Secondary group/area affected- Businesses and service providers engaging in negative option offers (e.g., subscription services, auto-renewing products): The disapproval would remove the FTC rule’s requirements, potentially increasing regulatory flexibility in those practices but also removing FTC-imposed standards.Additional impacts- Regulatory landscape and enforcement: The resolution would prevent the FTC rule from taking effect, which could influence enforcement priorities and compliance obligations in this area.- Policy and market implications: Removal of the rule may affect how consumers experience auto-renewals and negative option offers, possibly shifting risk toward consumers unless other laws or FTC actions address deceptive or unfair practices. States’ laws and other federal safeguards may play a larger role in governing these practices if the rule is not in force.

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