ABKF’s Clients Successfully Invalidate Major FTC Rule

In Custom Communications v. FTC, the U.S. Court of Appeals for the Eighth Circuit invalidated the FTC’s “negative-option” rule—a blunderbuss mandate that sought to micromanage cancelation procedures for billions of contracts nationwide. The mandated procedures were, at least in many cases, impractical for businesses and undesirable for consumers. Ben Flowers of ABKF represented the Michigan Press Association and the National Federal of Independent Business in a successful challenge to this rule. The Eighth Circuit unanimously held that the FTC failed to conduct a statutorily mandated regulatory analysis applicable to rules, like this one, that are projected to have an effect of $100 million or more on the American economy. Based on the FTC’s procedural failures, the Eighth Circuit invalidated the negative-option rule.

Ashbrook Byrne Kresge Flowers was founded in 2018 to provide sophisticated legal services for closely held businesses and to serve our local communities.

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