S.jres57 - 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. (119th Congress)
Summary
Senate Joint Resolution 57 (S.J.Res. 57) proposes congressional disapproval of the Federal Trade Commission's (FTC) "Negative Option Rule." This resolution, introduced by Mr. Lee on June 9, 2025, seeks to nullify the rule, which is documented in the Federal Register (89 Fed. Reg. 90476, November 15, 2024). The resolution invokes Chapter 8 of Title 5 of the United States Code, which outlines the process for congressional review of agency rulemaking.
The resolution states that Congress disapproves of the rule and that it shall have no force or effect. The resolution was read twice and referred to the Committee on Commerce, Science, and Transportation.
Essentially, this is Congress attempting to use its power to check the power of a regulatory agency, the FTC.
Expected Effects
If passed, S.J.Res. 57 would prevent the FTC's "Negative Option Rule" from taking effect. This means that the regulations outlined in the rule would not be enforced.
The practical effect would depend on the specifics of the "Negative Option Rule" itself, which are not detailed in this document. Without the rule, businesses may operate differently regarding negative option practices.
Potential Benefits
- Could reduce regulatory burden on businesses, potentially leading to lower costs for consumers.
- May prevent the FTC from overstepping its authority, preserving congressional oversight.
- Could foster innovation by allowing businesses more flexibility in their subscription and marketing practices.
- Might protect consumers from overly restrictive regulations that limit choice.
- Could lead to a more competitive marketplace if the rule stifled competition.
Most Benefited Areas:
Potential Disadvantages
- May remove consumer protections related to negative option marketing, potentially leading to deceptive practices.
- Could allow businesses to exploit consumers through automatic renewals and difficult cancellation processes.
- Might weaken the FTC's ability to regulate unfair or deceptive trade practices.
- Could result in financial harm to consumers who are unknowingly enrolled in recurring subscriptions.
- May create confusion and frustration for consumers who are unaware of their rights.
Constitutional Alignment
The resolution is an exercise of Congress's legislative power under Article I, Section 1 of the Constitution, which grants all legislative powers to Congress. Specifically, it utilizes the Congressional Review Act (CRA), codified in Chapter 8 of Title 5, which allows Congress to review and disapprove of agency rules.
This is a check on the executive branch and regulatory agencies, ensuring that they do not overstep their authority. The CRA itself was designed to reinforce Congress's role in overseeing the implementation of laws.
The resolution does not appear to infringe upon any specific constitutional rights or protections.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).