Congress Moves to Block FTC’s Negative Option Rule
A significant legislative action is underway as a Joint Resolution, H.J. Res. 100 (IH), has been introduced in the House of Representatives aiming to provide for congressional disapproval of a rule submitted by the Federal Trade Commission (FTC). This resolution targets the FTC’s regulation concerning “Negative Option Rule.”
The Negative Option Rule, as proposed by the FTC, is designed to address business practices where consumers are automatically enrolled into subscriptions or services and are billed unless they take affirmative action to cancel. These practices, often referred to as “negative option” or “auto-renewal” schemes, have drawn increasing scrutiny from consumer protection agencies and lawmakers due to concerns about transparency and potential deception.
The mechanism being employed, a Joint Resolution of Disapproval under chapter 8 of title 5 of the United States Code, is part of the Congressional Review Act (CRA). The CRA provides Congress with a tool to review and potentially overturn regulations issued by federal agencies. If a Joint Resolution of Disapproval is passed by both the House of Representatives and the Senate, and is subsequently signed by the President, the agency’s rule is invalidated.
The introduction of H.J. Res. 100 signifies that a bloc of legislators believes the FTC’s Negative Option Rule oversteps its authority or is otherwise problematic. Those supporting such resolutions often argue that the rule may be overly burdensome for businesses, could stifle innovation, or that Congress should be the body to legislate in this area, rather than federal agencies through rulemaking. Conversely, proponents of the FTC’s rule typically emphasize the need to protect consumers from unfair or deceptive practices, ensuring that individuals are fully aware of their commitments and have easy avenues to opt out of recurring charges.
The timing of this resolution, published on June 28, 2025, indicates that the legislative process for reviewing this FTC rule is now actively underway. The coming weeks and months will likely see robust debate and consideration of H.J. Res. 100. The outcome of this resolution will have a direct impact on how businesses operate their subscription and auto-renewal services, and will reflect Congress’s stance on consumer protection in the digital marketplace. Further developments in committee hearings and floor votes will be crucial in determining the future of the FTC’s Negative Option Rule.
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www.govinfo.gov published ‘H.J. Res. 100 (IH) – 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.’ at 2025-06-28 06:45. Please write a detailed article about this news in a polite tone with relevant information. Please reply in English with the article only.