In the name of consumer protection, a number of U.S. federal agencies are working to simplify the process for Americans to unsubscribe from unwanted memberships and recurring payment services.
A broad new government initiative, known as “Time Is Money,” involves the introduction of new regulations and more promises for industries such as healthcare, fitness memberships, and media subscriptions.
“The administration is taking action against the various ways that companies, through paperwork, long wait times, and overall annoyance, unnecessarily waste people’s money and time by making it difficult for them to cancel services and retain their money,” stated Neera Tanden, White House domestic policy adviser, during a press briefing prior to the announcement.
“Essentially, in all these practices, companies delay services or make it challenging for customers to cancel, allowing them to keep hold of customers’ money for longer periods. These seemingly minor inconveniences have significant financial implications,” Tanden added.
Efforts being rolled out on Monday include a new inquiry by the Federal Communications Commission to explore requirements on communications companies to facilitate canceling subscriptions or services as easily as signing up for them.
In March 2023, the Federal Trade Commission initiated rulemaking requiring companies to enable customers to end subscriptions with a simple click, similar to subscribing.
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 health coverage. They will also identify more opportunities to enhance consumer interactions with the healthcare system in the near future, as outlined in a White House summary.
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The government has already launched numerous initiatives aimed at improving the consumer experience.
In October, the FTC proposed a rule to ban hidden fees that obscure the total cost of items like concert tickets, hotel stays, and utility bills.
In April, the Transportation Department finalized rules requiring airlines to issue cash refunds for delayed flights and disclose fees for baggage or reservation cancellations.
The department has also taken action against individual companies accused of misleading consumers.
In June, the Justice Department filed a lawsuit against software maker Adobe and its executives for allegedly pushing consumers towards an annual subscription without proper disclosure of costs.
Adobe’s general counsel stated that the company disagrees with the lawsuit’s claims and will address them in court.
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Some business advocates are critical of the government’s efforts to crack down on hidden fees.
One advocate stated that the initiative is an attempt to interfere with businesses’ pricing structures and could limit consumer options.
