Providing for congressional disapproval under chapter 8 of title 5, United States Code, of the rule submitted by the Bureau of Consumer Financial Protection relating to the withdrawal of the rule relating to "Consumer Financial Protection Circular 2023-01: Unlawful Negative Option Marketing Practices".
Consumer Protection: Blocking Changes to Subscription Marketing Rules
This bill is currently in the early stages of the legislative process after being sent to the House Committee on Financial Services for review. No further actions or hearings have been scheduled at this time. It is considered active but is not currently moving forward.
Legislative Progress
This is a challenge to an agency rule, and these resolutions rarely pass unless the same party controls both Congress and the White House.
Key Points
- Rep. Bynum introduced a resolution to block the Consumer Financial Protection Bureau from canceling its own rules about subscription services. The rules in question deal with negative option marketing, which happens when companies automatically charge customers unless the customer takes action to cancel.
- By blocking the agency's recent change, this resolution tries to keep older protections in place for people who use streaming services, gym memberships, or other monthly plans. This matters because it affects how easy it is for you to cancel a subscription and whether companies can hide the fact that they are going to charge your credit card.
- If this resolution passes, the agency's recent decision to withdraw its 2023 guidance would have no force or effect. This would likely force the agency to continue enforcing stricter standards against companies that make it difficult for customers to opt out of recurring payments.
Impact Analysis
Govbase has not yet run an impact analysis on this legislation.
Milestones
Referred to the House Committee on Financial Services.
Introduced in House
The bill was officially filed and given a number. It now enters the legislative queue.
Votes
No votes have been recorded for this legislation yet.
News
No related news coverage found for this legislation yet.
Source Information
Document Type
Congressional Bill
Official Title
Providing for congressional disapproval under chapter 8 of title 5, United States Code, of the rule submitted by the Bureau of Consumer Financial Protection relating to the withdrawal of the rule relating to "Consumer Financial Protection Circular 2023-01: Unlawful Negative Option Marketing Practices".
Data Sources
Sponsor
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