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".
- Bill Number
- H.J.Res. 183
- Origin Chamber
- House
- Congress
- 119th Congress, Session 2
- Policy Area
- Finance and Financial Sector
- Status
- Introduced
- Latest Action
- 2026-05-12: Referred to the House Committee on Financial Services.
- Last Updated
- 2026-05-21T20:37:38Z
AI-Generated Summary
Purpose
This joint resolution (H.J. Res. 183) uses the Congressional Review Act (a law allowing Congress to overturn certain federal agency rules) to block the Bureau of Consumer Financial Protection (CFPB) from withdrawing its earlier guidance on negative option marketing. Negative option marketing refers to business practices where consumers are automatically charged for a product or service (like subscriptions) unless they take action to cancel.
Key Provisions
- Congress explicitly disapproves the CFPB's rule (published May 12, 2025, at 90 Fed. Reg. 20086) that sought to withdraw "Consumer Financial Protection Circular 2023-01."
- The original Circular (published January 30, 2023, at 88 Fed. Reg. 5727) declared certain negative option practices as potentially unlawful under consumer protection laws.
- Once approved by Congress and signed (or passed over veto), the withdrawal rule has no force or effect, preserving the original Circular.
Significant Changes to Existing Law
- No new laws are created; instead, it reverses the CFPB's attempt to eliminate its own 2023 guidance.
- Effectively reinstates the Circular's stance that negative option practices can violate federal consumer protection rules if they involve deceptive or abusive conduct.
Potential Impacts
- Government agencies: Limits CFPB's ability to retract its own enforcement guidance, potentially increasing regulatory scrutiny on financial products.
- Citizens (consumers): Maintains protections against unwanted recurring charges from subscriptions, free trials, or similar offers, making it easier to challenge unfair practices.
- Businesses: Companies using negative options (e.g., gyms, streaming services, or online retailers) face continued risk of CFPB enforcement actions.
- No direct impact on international relations.
Main Stakeholders Affected
- CFPB: Its regulatory priorities are overridden by Congress.
- Consumers: Gain sustained safeguards against misleading billing practices.
- Financial and consumer product companies: Must comply with the Circular's standards on clear disclosures and easy cancellations.
- Congress: Demonstrates use of oversight tools over executive agencies.
Notable Legal, Constitutional, or Political Implications
- Legal: Invokes the Congressional Review Act (5 U.S.C. Chapter 8), a streamlined process for quick disapproval of agency rules without standard legislative hurdles.
- Constitutional: Reinforces Congress's oversight of executive branch agencies under Article I powers.
- Political: Highlights partisan divides on consumer regulation; introduced by Rep. Bynum (likely Democratic) and referred to the House Financial Services Committee on May 12, 2026, in the 119th Congress. If enacted, it sets a precedent for Congress intervening in agency self-corrections.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Rep. Bynum, Janelle S. [D-OR-5]
Recent Actions
- 2026-05-12: Referred to the House Committee on Financial Services.
- 2026-05-12: Introduced in House
- 2026-05-12: Introduced in House
Bill Versions
- 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". — issued 2026-05-12 — PDF (2 pages)