(Bloomberg) -- President Joe Biden’s administration is asking Americans for ways to ease consumer service hurdles they face when canceling subscriptions or obtaining refunds – part of a broader effort to address kitchen-table issues for voters ahead of the election.
The White House unveiled an initiative, dubbed “Time is Money,” which aims to “crack down on all the ways that corporations — through excessive paperwork, hold times, and general aggravation — add unnecessary headaches and hassles to people’s days,” according to a White House release detailing the effort.
The administration is unveiling a portal where Americans can submit suggestions for what actions the government can take next. Efforts already underway — or being expanded — aim to make it easier to drop subscriptions and memberships, submit health claims online, streamline parents’ communications with schools and get a human customer-service representative on calls.
A rule proposed by the Federal Trade Commission, if finalized, would require companies to make it as easy to cancel a subscription or service as it was to sign up. The agency is reviewing public comments on the proposal. The Federal Communications Commission is now launching an inquiry into whether to extend those requirements to the communications industry.
Health and Human Services Secretary Xavier Becerra and acting Labor Secretary Julie Su are also calling on health insurance companies and group plans to take steps to save people time and money when dealing with health coverage. Many of the largest plans still require consumers to scan or mail claims forms, in addition to confusing websites and extended wait times for customers seeking help, according to the White House.
Biden has made targeting so-called junk fees — hidden charges on consumers — and burdensome company practices a centerpiece of his agenda, touting the measures as helping control costs for Americans battered by high prices. High inflation has soured voter perceptions of the administration’s handling of the economy and threatens to undercut Vice President Kamala Harris, the new Democratic nominee, in her campaign for the White House.
The Consumer Financial Protection Bureau is initiating rulemaking to require companies under its jurisdiction to let customers talk to a human by pressing a single button – an effort to avoid so-called “doom loops,” where consumers say they are confronted by complex menu options on the phone and must listen to repeated, lengthy automated messages when seeking help. The FCC will also launch an inquiry into considering such requirements for phone, broadband and cable companies.
CFPB plans to issue rules or guidance to crack down on “ineffective and time-wasting chatbots used by bans and other financial institutions” in customer service.
The Department of Education will also issue guidance on how to make communicating with teachers, viewing school policies and completing forms and permission slips easier for parents.
“The administration is cracking down on all the ways that companies, through paper work, hold times and general aggravation, waste people’s time and then really hold onto their money,” White House Domestic Policy Advisor Neera Tanden told reporters.
The efforts follow a Department of Transportation regulation forcing airlines to provide automatic refunds to travelers if flights are canceled or significantly altered.
The White House has been clamping down on overdraft charges and Biden has targeted fees across industries, including credit card late-payment penalties and airline surcharges.
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