The Biden administration has introduced a new consumer protection initiative called “Time Is Money,” designed to address the challenges Americans face when trying to cancel subscriptions, secure refunds, and resolve customer service issues. This initiative builds on previous efforts to combat hidden fees and enhance transparency.
Simplifying Subscription Cancellations
“Time Is Money” is a comprehensive initiative that targets the complications involved in canceling subscriptions and resolving service issues. Neera Tanden, the White House domestic policy adviser, emphasized that the administration aims to eliminate the barriers companies use to retain customers’ money, such as complicated cancellation processes and long wait times.
Tanden explained that these obstacles are deliberately created by companies to delay cancellations and hold onto consumers’ funds longer. The initiative seeks to streamline these processes, making it easier for people to manage their subscriptions and avoid unnecessary fees.
New Rules from the FCC and FTC
A major aspect of this initiative is a new inquiry by the Federal Communications Commission (FCC). The FCC is considering new requirements for communications companies to make subscription cancellations as easy as signing up. This move complements the Federal Trade Commission’s (FTC) “click to cancel” rulemaking, which mandates that companies must allow customers to end subscriptions as easily as they started them.
The FTC’s rule is part of a broader effort to protect consumers from being trapped in unwanted recurring payments, ensuring they can manage their subscriptions without unnecessary hassle.
Healthcare and Insurance Improvements
As part of “Time Is Money,” the Departments of Labor and Health and Human Services are pushing for better interactions between consumers and their health insurance providers. The goal is to make navigating health coverage and resolving issues more straightforward. These departments will identify further opportunities to enhance the consumer experience in healthcare over the coming months.
Addressing Junk Fees and Misleading Practices
The administration has already taken steps to tackle hidden fees and misleading practices. In October, the FTC proposed a rule to eliminate deceptive fees that obscure the real cost of services like concert tickets, hotel stays, and utility bills. This rule aims to increase pricing transparency and protect consumers from unexpected costs.
In April, the Department of Transportation introduced rules requiring airlines to automatically issue cash refunds for delayed flights and to disclose baggage and reservation cancellation fees more clearly. These regulations are part of a broader effort to hold companies accountable for unfair practices.
Additionally, in June, the Justice Department filed a lawsuit against Adobe and its executives for allegedly misleading consumers about the costs associated with canceling its “annual paid monthly” subscription plan. Adobe has contested the lawsuit, arguing that the early termination fees are a small part of their revenue but are important for offering flexible plans.
Industry Reactions and Future Plans
The administration’s efforts have faced criticism from some business advocates. Sean Heather of the U.S. Chamber of Commerce argued that the initiative could interfere with businesses’ pricing strategies and limit their ability to offer diverse options to consumers.
Despite such concerns, the administration remains committed to its consumer protection goals. Future regulations include measures from the FTC to prevent fake reviews and deceptive marketing practices. Additionally, the Consumer Financial Protection Bureau (CFPB) is working to eliminate ineffective chatbots used by financial institutions, which often frustrate consumers seeking real customer service.
