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White House Press Secretary Karine Jean-Pierre spoke about the Biden administration's plan to make it easier for Americans to cancel unwanted subscriptions at a press briefing on August 12, 2024.
(Photo: Kevin Dietsch/Getty Images)
To Protect Consumers, Biden Cracks Down on 'Corporate Tricks' Like Hard-To-Cancel Services
"The administration is cracking down on all the ways that companies—through paperwork, hold times and general aggravation—waste people's money, waste people's time," a White House official said.
Aug 12, 2024
The Biden administration on Monday launched a wide-ranging consumer protection campaign called "Time Is Money" aimed at cracking down on hard-to-cancel services, deliberately poor customer service, and other "corporate tricks" that involve overly complicated or burdensome processes, such as in the filling out of insurance claims.
The effort involves a number of agencies and initiatives, some already underway, like a proposed Federal Trade Commission (FTC) rule, first announced in March 2023 and currently under public review, that would require companies to make it as easy to cancel a subscription or service as it is to sign up. At least one regulation the administration included as part of "Time Is Money" is already final: a Department of Transportation rule on automatic refunds for airline tickets that are canceled or significantly changed.
Other changes are forthcoming, the White House says. The Consumer Financial Protection Bureau (CFPB) will introduce a rule that would require companies under its jurisdiction to allow callers to escape customer service "doom loops" and speak to a human being by pressing a single button; the Federal Communications Commission (FCC) is considering a similar initiative for cable and other communications companies, as well as a proposal like the FTC's proposed easy-to-cancel rule.
"The administration is cracking down on all the ways that companies—through paperwork, hold times, and general aggravation—waste people's money, waste people's time," said Neera Tanden, a domestic policy adviser to President Joe Biden, a Democrat, according to HuffPost.
"For example, you want to cancel your gym membership or subscription service to a newspaper," Tanden said. "It took one or two clicks to sign up, but now to end your subscription or cancel the membership, you have to go in person or wait on hold for 20 minutes."
"These seemingly small inconveniences don't really happen by accident," she added. "They have huge financial consequences."
BREAKING: Banks, credit card companies, and more will be required to let customers talk to a human by pressing a single button under a new Biden administration proposed rule.
The @CFPB rule is part of a campaign to crack down on customer service “doom loops.”
— More Perfect Union (@MorePerfectUS) August 12, 2024
Tanden, a former Hillary Clinton aid who has often been at odds with progressives, was careful to clarify that regulations were not aimed at "shaming corporations writ large."
The White House said the new campaign fits with its long-standing effort to improve customer experience with government services. In 2021, Biden signed an executive order calling for federal agencies to streamline and simplify the services they offer. The U.S. State Department has since launched a trial effort to renew passports online, and the Internal Revenue Service has launched a "Direct File" program that's free to use, following a successful pilot.
The "Time Is Money" campaign is also in keeping with the administration's consumer protection agenda. Both the FTC—led by Chair Lina Khan, a favorite of progressives—and the U.S. Department of Justice have stepped up antitrust enforcement. And in October the FTC announced a crackdown on junk and hidden fees.
All of these initiatives have come from the executive branch, making them vulnerable to reversal if Republicans take control of the White House or U.S. Congress next year. Democrats may be hoping the presumed popularity of efforts such as "Time Is Money" help prevent that from happening.
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The Biden administration on Monday launched a wide-ranging consumer protection campaign called "Time Is Money" aimed at cracking down on hard-to-cancel services, deliberately poor customer service, and other "corporate tricks" that involve overly complicated or burdensome processes, such as in the filling out of insurance claims.
The effort involves a number of agencies and initiatives, some already underway, like a proposed Federal Trade Commission (FTC) rule, first announced in March 2023 and currently under public review, that would require companies to make it as easy to cancel a subscription or service as it is to sign up. At least one regulation the administration included as part of "Time Is Money" is already final: a Department of Transportation rule on automatic refunds for airline tickets that are canceled or significantly changed.
Other changes are forthcoming, the White House says. The Consumer Financial Protection Bureau (CFPB) will introduce a rule that would require companies under its jurisdiction to allow callers to escape customer service "doom loops" and speak to a human being by pressing a single button; the Federal Communications Commission (FCC) is considering a similar initiative for cable and other communications companies, as well as a proposal like the FTC's proposed easy-to-cancel rule.
"The administration is cracking down on all the ways that companies—through paperwork, hold times, and general aggravation—waste people's money, waste people's time," said Neera Tanden, a domestic policy adviser to President Joe Biden, a Democrat, according to HuffPost.
"For example, you want to cancel your gym membership or subscription service to a newspaper," Tanden said. "It took one or two clicks to sign up, but now to end your subscription or cancel the membership, you have to go in person or wait on hold for 20 minutes."
"These seemingly small inconveniences don't really happen by accident," she added. "They have huge financial consequences."
BREAKING: Banks, credit card companies, and more will be required to let customers talk to a human by pressing a single button under a new Biden administration proposed rule.
The @CFPB rule is part of a campaign to crack down on customer service “doom loops.”
— More Perfect Union (@MorePerfectUS) August 12, 2024
Tanden, a former Hillary Clinton aid who has often been at odds with progressives, was careful to clarify that regulations were not aimed at "shaming corporations writ large."
The White House said the new campaign fits with its long-standing effort to improve customer experience with government services. In 2021, Biden signed an executive order calling for federal agencies to streamline and simplify the services they offer. The U.S. State Department has since launched a trial effort to renew passports online, and the Internal Revenue Service has launched a "Direct File" program that's free to use, following a successful pilot.
The "Time Is Money" campaign is also in keeping with the administration's consumer protection agenda. Both the FTC—led by Chair Lina Khan, a favorite of progressives—and the U.S. Department of Justice have stepped up antitrust enforcement. And in October the FTC announced a crackdown on junk and hidden fees.
All of these initiatives have come from the executive branch, making them vulnerable to reversal if Republicans take control of the White House or U.S. Congress next year. Democrats may be hoping the presumed popularity of efforts such as "Time Is Money" help prevent that from happening.
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The Biden administration on Monday launched a wide-ranging consumer protection campaign called "Time Is Money" aimed at cracking down on hard-to-cancel services, deliberately poor customer service, and other "corporate tricks" that involve overly complicated or burdensome processes, such as in the filling out of insurance claims.
The effort involves a number of agencies and initiatives, some already underway, like a proposed Federal Trade Commission (FTC) rule, first announced in March 2023 and currently under public review, that would require companies to make it as easy to cancel a subscription or service as it is to sign up. At least one regulation the administration included as part of "Time Is Money" is already final: a Department of Transportation rule on automatic refunds for airline tickets that are canceled or significantly changed.
Other changes are forthcoming, the White House says. The Consumer Financial Protection Bureau (CFPB) will introduce a rule that would require companies under its jurisdiction to allow callers to escape customer service "doom loops" and speak to a human being by pressing a single button; the Federal Communications Commission (FCC) is considering a similar initiative for cable and other communications companies, as well as a proposal like the FTC's proposed easy-to-cancel rule.
"The administration is cracking down on all the ways that companies—through paperwork, hold times, and general aggravation—waste people's money, waste people's time," said Neera Tanden, a domestic policy adviser to President Joe Biden, a Democrat, according to HuffPost.
"For example, you want to cancel your gym membership or subscription service to a newspaper," Tanden said. "It took one or two clicks to sign up, but now to end your subscription or cancel the membership, you have to go in person or wait on hold for 20 minutes."
"These seemingly small inconveniences don't really happen by accident," she added. "They have huge financial consequences."
BREAKING: Banks, credit card companies, and more will be required to let customers talk to a human by pressing a single button under a new Biden administration proposed rule.
The @CFPB rule is part of a campaign to crack down on customer service “doom loops.”
— More Perfect Union (@MorePerfectUS) August 12, 2024
Tanden, a former Hillary Clinton aid who has often been at odds with progressives, was careful to clarify that regulations were not aimed at "shaming corporations writ large."
The White House said the new campaign fits with its long-standing effort to improve customer experience with government services. In 2021, Biden signed an executive order calling for federal agencies to streamline and simplify the services they offer. The U.S. State Department has since launched a trial effort to renew passports online, and the Internal Revenue Service has launched a "Direct File" program that's free to use, following a successful pilot.
The "Time Is Money" campaign is also in keeping with the administration's consumer protection agenda. Both the FTC—led by Chair Lina Khan, a favorite of progressives—and the U.S. Department of Justice have stepped up antitrust enforcement. And in October the FTC announced a crackdown on junk and hidden fees.
All of these initiatives have come from the executive branch, making them vulnerable to reversal if Republicans take control of the White House or U.S. Congress next year. Democrats may be hoping the presumed popularity of efforts such as "Time Is Money" help prevent that from happening.
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Related Articles Around the Web
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