WASHINGTON (AP) — In the name of consumer protection, a number of U.S. federal agencies are making efforts to simplify the process for Americans to unsubscribe from unwanted memberships and recurring payment services.
An extensive new government initiative, known as “Time Is Money,” involves the implementation of new regulations and the promise of additional measures for industries such as healthcare, fitness memberships, and media subscriptions.
White House domestic policy adviser Neera Tanden stated, “The administration is taking action against various practices that cause people to waste money and time through paperwork, hold times, and inconveniences, preventing them from canceling services easily and holding onto their money.” Tanden emphasized the financial impact of these seemingly small inconveniences.
Efforts set to launch on Monday include a Federal Communications Commission inquiry to consider imposing requirements on communications companies that would facilitate canceling subscriptions as easily as signing up for them.
The Federal Trade Commission initiated a “click to cancel” rulemaking process in March 2023, mandating companies to allow customers to end subscriptions with the same ease they started them.
Additionally, the heads of the departments of Labor and Health and Human Services are urging health insurance companies and group health plans to enhance customer interactions, with plans to identify further opportunities for improving consumer experiences in the healthcare system.
The government has already introduced initiatives to enhance consumer experiences, such as the FTC’s proposal to ban hidden fees and the Transportation Department’s rules requiring airlines to issue automatic cash refunds for delayed flights and disclose fees more transparently.
The Justice Department also filed a lawsuit against software maker Adobe in June, accused of misleading consumers regarding subscription termination fees.
Adobe’s general counsel, Dana Rao, disagreed with the lawsuit’s allegations and stated that the termination fees account for a minimal portion of their revenue globally.
While some business advocates criticize the government’s crackdown on junk fees, others view it as an attempt to manage businesses’ pricing structures and limit consumer choices at different price points.
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