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".
- Bill Number
- S.J.Res. 160
- Origin Chamber
- Senate
- Congress
- 119th Congress, Session 2
- Policy Area
- Finance and Financial Sector
- Status
- Introduced
- Latest Action
- 2026-04-13: Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
- Last Updated
- 2026-05-21T20:37:28Z
AI-Generated Summary
Purpose
This joint resolution (S.J. Res. 160) uses the Congressional Review Act (a law allowing Congress to overturn certain federal agency rules) to disapprove and block a rule from the Bureau of Consumer Financial Protection (CFPB). Specifically, it targets the CFPB's decision to withdraw its earlier guidance on "negative option marketing practices," which are sales tactics like subscriptions that continue charging unless the customer actively cancels (opt-out model).
Key Provisions
- Disapproval of CFPB Rule: Congress explicitly disapproves the CFPB's rule withdrawing "Consumer Financial Protection Circular 2023-01: Unlawful Negative Option Marketing Practices" (originally published January 30, 2023, at 88 Fed. Reg. 5727).
- Nullification: The withdrawal rule (published May 12, 2025, at 90 Fed. Reg. 20086) is declared to have "no force or effect," effectively reinstating the original 2023 guidance.
- Introduced by Sen. Kirsten Gillibrand (D-NY) on April 13, 2026, and referred to the Senate Committee on Banking, Housing, and Urban Affairs.
Significant Changes to Existing Law
- No direct changes to statutes; instead, it reverses an agency action under the Congressional Review Act.
- Prevents the CFPB from withdrawing its 2023 interpretive guidance, which outlined how negative option practices could violate consumer protection laws like the Consumer Financial Protection Act.
Potential Impacts
- On Government Agencies: Limits CFPB's ability to retract its own enforcement guidance, potentially requiring continued oversight of negative option marketing in financial products (e.g., gym memberships, streaming services, or credit card offers).
- On Citizens: Strengthens consumer protections against deceptive auto-renewal billing, making it easier for regulators to challenge unfair practices.
- On Businesses: Increases compliance burdens for financial companies using negative options, as the 2023 guidance remains active and could lead to more enforcement actions.
- No direct impact on international relations.
Main Stakeholders Affected
- Consumers: Benefit from reinstated guidance protecting against unwanted recurring charges.
- Financial Businesses: Face heightened scrutiny and potential penalties for negative option marketing.
- CFPB: Loses flexibility to update or withdraw its positions on consumer protection issues.
- Congress: Asserts oversight over independent agencies like the CFPB.
Notable Legal, Constitutional, or Political Implications
- Legal: Invokes the Congressional Review Act (5 U.S.C. Chapter 8), a fast-track tool for Congress to veto agency rules within a set window; successful passage would set a precedent for blocking agency withdrawals of prior guidance.
- Constitutional: Reinforces Congress's oversight of the executive branch under Article I, potentially checking "administrative state" actions without new legislation.
- Political: Highlights partisan divides on consumer protection; introduced by a Democrat amid CFPB leadership changes, it could signal efforts to preserve aggressive enforcement against business practices.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Sen. Gillibrand, Kirsten E. [D-NY]
Recent Actions
- 2026-04-13: Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
- 2026-04-13: Introduced in Senate
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 2026-04-13 — PDF (2 pages)