Corporations creating too much hassle for consumers, Biden administration says

US President Joe Biden’s administration has announced a handful of policies to crack down on “headaches and hassles that waste Americans’ time and money.” One of those is, of course, the labyrinths we have to navigate when we want to cancel a subscription.

The new effort is called “Time Is Money,” and its aim is to limit the ways that corporations add unnecessary trouble to people’s everyday lives through excessive paperwork, hold times, and “general aggravation.”

Through the Federal Trade Commission and the Federal Communications Commission, the administration will, for example, ask companies to make it as easy to cancel subscriptions and memberships as it is to sign up for them.

“The companies are delaying services to you or, really, trying to make it so difficult for you to cancel the service that they get to hold on to your money longer and longer,” White House Domestic Policy Advisor Neera Tanden said. “And what that means is, ultimately, consumers, the American public, is losing out.”

That’s no coincidence, the White House says, because the firms usually stall to deter customers from getting a refund or canceling an annoying monthly fee they no longer want. The goal is to maximize profits.

“When, after endless hours on hold or piles of incomprehensible paperwork, we give up pursuing a service, rebate or refund we’re due, we take a hit to our pocketbooks, and companies profit,” said the administration.

A new rule from the Consumer Financial Protection Bureau will require companies to let customers bypass automated customer service “doom loops” by pressing a single button to reach a real person.

“If you want to talk to a human, you should be able to talk to a human at convenient times and without interminable waits. If you prefer to interact electronically – such as by text, email, or online portal – there should be simple and easily identified ways to do so securely,” said the officials.

In a recent survey, respondents said that being forced to listen to long messages before being permitted to speak to a live representative was their top customer service complaint.

The Biden administration also said airlines would now be required to automatically refund customers when their flight was canceled or delayed: “No more jumping through hoops or getting stuck with expiring flight credits.”

Finally, the initiative is even targeting customer service chatbots, which are surely bound to become ubiquitous with the emergence of generative AI. They frequently provide inaccurate information and annoy customers seeking a real person.

The administration is thus planning to issue rules to crack down on ineffective and time-wasting chatbots used by banks and other financial institutions in lieu of customer service.

The Consumer Financial Protection Bureau will identify when the use of automated chatbots or automated AI voice recordings is unlawful, including in situations in which customers believe they are speaking with a human being.

The new regulations were rolled out Monday but will be implemented on varying timelines, with some taking weeks and others months, said the administration officials.

With Biden at the helm, federal regulators have stepped up efforts to scrutinize big US corporations and their business practices. Big tech firms have also been targeted in antitrust inquiries.