A joint resolution 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".
Sen. Gillibrand Moves to Restore Consumer Protections Against Sneaky Subscription Charges
This bill is currently in the early stages of the legislative process and has been sent to the Senate Committee on Banking, Housing, and Urban Affairs for review. No further actions are scheduled at this time. The bill is considered active as it waits for the committee to decide on its next steps.
Legislative Progress
This resolution faces a tough path because it requires majority support in both the House and Senate to override an agency decision. These types of challenges often fail unless there is a large shift in political power.
Key Points
Impact Analysis
Personal Impact
Small businesses that use subscription-based billing models would face stricter oversight if the original CFPB circular is restored. Companies using legitimate subscription practices would see little change, but those relying on confusing cancellation processes or automatic renewals without clear consent could face enforcement actions. This creates a more level playing field for honest businesses but adds compliance pressure on those with borderline practices.
“Unlawful Negative Option Marketing Practices”
Milestones
Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
Sent to a congressional committee for expert review. The committee decides whether this bill moves forward.
Introduced in Senate
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.
Related News
3 articlesDemocrats Move to Revive CFPB Rules Against Sneaky Subscriptions
A new joint resolution led by Sen. Kirsten Gillibrand seeks to nullify the CFPB's recent decision to scrap guidance on unlawful negative option marketing. If passed, the resolution would restore the agency's ability to crack down on businesses that use free trials to trap consumers into paying.
Gillibrand leads push to restore consumer protections against 'junk' subscriptions
Senator Kirsten Gillibrand introduced a resolution of disapproval to cancel the CFPB's withdrawal of rules against hidden subscription fees. The resolution targets "negative option" marketing, where companies continue charging customers until they affirmatively cancel, often using dark patterns.
Gillibrand takes aim at CFPB's deregulatory shift on subscriptions
Sen. Kirsten Gillibrand is using the Congressional Review Act to challenge the CFPB's withdrawal of a key consumer protection circular. The resolution would restore guidance issued in 2023 that defined deceptive subscription practices as unlawful under federal financial protection laws.
Source Information
Document Type
Congressional Bill
Official Title
A joint resolution 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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