FTC's Rulemaking Process Rebuffed: Procedural Irregularities Found

The Federal Trade Commission (FTC) faced a setback in the 8th Circuit Court of Appeals, which overturned its new negative option rule due to a lack of preliminary regulatory analysis. The court found the FTC violated the Administrative Procedure Act by failing to conduct a cost-benefit analysis before issuing the proposed rule, depriving industry groups and businesses of adequate participation. This decision raises concerns about transparency and fairness in the FTC's rulemaking process and highlights a significant event in tech regulation.