Representatives Laurel Lee and Gus Bilirakis Respond to the Eighth Circuit Court's Decision

Tampa, FL - Yesterday, the Eighth Circuit Court of Appeals vacated the FTC's final Negative Option Rule put in place by Lina Khan, October 2024. The rule was set to be implemented in 2025.

In June, Congresswoman Laurel Lee introduced a Congressional Review Act (CRA) resolution to rescind the Biden-Harris Administration rule. Congresswoman Lee and her colleague, Congressman Gus Bilirakis, CMT Subcommittee Chairman of the House Committee on Energy & Commerce, were pleased by the Eighth Circuit Court's ruling to dismiss the unlawful rule. Their reactions below:

"The Federal Trade Commission's Negative Option Rule far exceeded the agency's consumer protection mandate. By imposing sweeping and costly new requirements-estimated to exceed $100 million annually-the rule would have driven up costs for consumers rather than protecting them.

As the Eighth Circuit rightly noted, the FTC rushed this partisan rule through just before the 2024 election, bypassing key steps in the rulemaking process and ignoring legitimate concerns raised by stakeholders. That is why I introduced a Congressional Review Act (CRA) resolution months ago to overturn the rule, and called on the FTC to delay implementation until the courts could review its legality.

I'm grateful the Eighth Circuit recognized the serious economic harm this rule would have caused and acted to vacate it. Moving forward, I remain committed to reining in executive overreach and collaborating with my colleagues on thoughtful reforms to ensure subscription practices are fair, transparent, and protect both consumers and businesses," said Congresswoman Lee.

"The Eighth Circuit's decision to vacate the FTC's 'negative option' rule is a necessary check on regulatory overreach. In her rush to regulate, Lina Khan failed to follow appropriate procedures - undermining transparency and due process for stakeholders and consumers alike. This ruling reinforces the importance of accountability and adherence to the rule of law in regulatory actions. It's now time to restore trust in the Federal Trade Commission and protect American consumers without unduly burdening legitimate business activity"said Congressman Bilirakis, Chairman of the House Commerce, Manufacturing, & Trade Subcommittee.