Simplified Subscription Cancellations: White House Plan

The Biden administration is taking action against deceptive practices used by businesses that create unnecessary hassles and headaches for consumers, aiming to improve their quality of life. The new initiative, "Time is Money," targets companies that make it difficult for customers to cancel memberships or obtain refunds. Many people give up due to excessive paperwork or long waits on the phone, which benefits businesses by increasing their profits.

This broad effort involves several government agencies. For instance, the Federal Trade Commission (FTC) is proposing a rule that would make it as easy to cancel a service or subscription as it is to sign up for it. The Federal Communications Commission (FCC) is also considering whether similar rules should apply to companies in the communications sector.

Additionally, the Department of Transportation has introduced a new rule requiring airlines to provide automatic refunds in the original payment method if a flight is canceled or significantly altered without rebooking options.

The administration is also working to simplify the process for submitting claims to health insurance companies. The White House notes that some companies still require physical mail for claims, and with support from the Department of Health and Human Services, they plan to find ways to help customers save time and money on their health coverage.

The Consumer Financial Protection Bureau (CFPB) is planning new regulations that will mandate companies to allow customers to speak with a human representative by pressing just one button. This change aims to end frustrating automated systems and ineffective chatbots used by banks and financial institutions, ensuring that customers get more effective and human interaction.