HJRES 100119th CongressIn Committee

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 (CRA) process to disapprove the Federal Trade Commission’s proposed rule regarding “Negative Option Rule.” Introduced by Ms. Lee of Florida, the resolution would block the FTC rule from taking effect. Under the CRA, if Congress passes the joint resolution and the President signs it (or Congress overrides a veto), the rule cannot be implemented by the FTC. If the resolution fails to become law, the FTC rule would proceed under its normal rulemaking timeline. In practical terms, this means Congress would be signaling disapproval of the FTC’s approach to regulating negative option marketing (practices where consumers are enrolled in services or charged fees on a negative option basis, typically requiring action to cancel). The resolution, if enacted, would prevent that rule from becoming law and enforceable.

Key Points

1The measure is a joint resolution using the Congressional Review Act to disapprove the FTC’s Negative Option Rule.
2If enacted (passed by both chambers and signed by the President, or Congress overrides a veto), the rule cannot take effect and would be invalidated.
3The rule targets “negative option” marketing practices, where consumers may be enrolled or charged unless they take action to cancel or opt out.
4The bill docket shows it was introduced in the House by Ms. Lee of Florida and referred to the Committee on Energy and Commerce.
5The resolution does not repeal other FTC rules or existing consumer protection laws; it specifically blocks the implementation of this particular rule.

Impact Areas

Primary group/area affected- Consumers who are or would be subject to negative option marketing practices (e.g., subscriptions or services that bill automatically unless canceled) and consumer-protection advocates who are evaluating FTC regulations.Secondary group/area affected- Businesses that rely on or use negative option marketing practices, as the rule could have imposed new disclosure or consent requirements; the disapproval would maintain the status quo rather than adding new regulatory burdens.Additional impacts- The action demonstrates congressional stance on FTC rulemaking and could influence future agency rulemaking or revisions to the Congressional Review Act process.- If the rule were to be disapproved, potential changes in enforcement signals from the FTC about negative option practices and related consumer protection enforcement priorities.

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