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The White House on Monday announced a series of measures to save consumers time and money.
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They include a proposal to make it easier to cancel subscriptions and memberships.
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They would also address bad customer service with a rule that would make it easier to talk to a person.
Tired of spending hours trying to cancel your gym membership or get a refund on your flight? A solution may be coming your way.
On Monday, President Joe Biden’s administration announced new efforts to crack down on hard-to-cancel orders and poor customer service in proposals known as the “Time Is Money” initiative.
Working with several government agencies, including the Federal Trade Commission, the Department of Transportation, and the Consumer Financial Protection Bureau, the administration proposes rules that make business processes easier for consumers. These rules would ensure that people don’t have to pay for orders they don’t want, wasting money and time.
“Essentially, all of these practices involve companies delaying service to you or really trying to make it so difficult to cancel service that they hold onto your money longer,” a domestic policy adviser Neera Tanden told reporters at a press conference on Friday. “These seemingly small inconveniences don’t happen by accident. They have huge financial consequences. They’re really just taking advantage of the fact that people are really busy.”
Specifically, according to a White House fact sheet, the FTC is proposing a rule that would require companies to make canceling an order as easy as signing it; the agency is currently reviewing public comments on this proposal.
When it comes to customer service, the CFPB is launching a rulemaking process to get rid of “judgment loops” that require customers to click through a “maze of menu options and auto-records” to speak with an agent. The CFPB’s proposal would require businesses to have a personal representative available at the click of a button.
The Department of Transportation previously announced a rule that would require airlines to pay customers automatic refunds when their flights are delayed or canceled, rather than the customer having to wait for the airline to get the money back.
Business Insider previously reported on why customer service is so frustrating. Economist Dan Davies called it “accountability,” where companies use an algorithm or defer to company policy so that no employee is responsible for a customer’s frustration.
“This is a situation that people find so incredibly frustrating,” Davies previously told BI. “Because it’s bad to have decisions go against you, but it’s completely psychologically unbearable to feel like you’re not being listened to.”
With Monday’s announcement, the White House is also opening a portal where anyone can submit suggestions on what the administration should address next to save time and money.
“I think we can all relate to this. It happens to Americans every day,” Tanden said. “For example, you want to cancel your gym membership or newspaper subscription service. It used to take a click or two to sign up, but now you have to go in person or wait on hold to cancel your subscription or cancel your membership. 20 minutes, 30 minutes, half an hour to just opt out.”
Having trouble canceling subscriptions or memberships? Have you had a bad customer experience? Share your story with this editor at asheffey@businessinsider.com.
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