This bill would make the Federal Trade Commission’s rule on the "Negative Option" (issued November 15, 2024; 89 Fed. Reg. 90476) have the force and effect of law. The bill says a violation of that rule is an unfair or deceptive act or practice under section 18(a)(1)(B) of the Federal Trade Commission Act. It also says the FTC will enforce the rule with the same jurisdiction, powers, duties, penalties, and procedures it already has under the FTC Act.
If you are an individual or business covered by the FTC’s Negative Option Rule, this bill would make that FTC rule legally enforceable. Businesses subject to the rule would be required to follow it as law. Consumers who use services with negative option features (for example, automatic renewals or offers that continue unless canceled) may be affected by how the rule is enforced, but the bill text itself does not list specific consumer rights beyond codifying the FTC rule.
No publicly available information on the bill’s costs or budgetary effects is included in the bill text or metadata.
The bill’s sponsors introduced it to codify the FTC’s click-to-cancel/Negative Option rule so it has the force of law. Sponsors named in the metadata include Brad Sherman, Seth Magaziner, and Christopher Deluzio, among others. No additional sponsor statements or detailed legislative findings are included in the bill text.
No publicly available information about opposition or criticisms is included in the bill text or metadata.