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White House proposes efforts to ease consumer 'headaches and hassles'
By Clyde Hughes,
13 hours ago
Aug. 12 (UPI) -- The White House on Monday announced proposed rule changes across several departments to streamline customer service experiences and prevent companies from saddling consumers with cumbersome waits and processes to cancel services or get refunds.
President Joe Biden walks out from the White House as he departs to Wilmington, Delaware on August 2. His administration announced consumer service initiatives on Monday. Photo by Yuri Gripas/UPI
The Biden administration said these changes would help Americans avoid "unnecessary headaches and hassles" ranging from long phone holds to talk to human beings, to difficulty finding information on ending services.
"These hassles don't just happen by accident," the White House said in a statement. "Companies often deliberately design their business processes to be time-consuming or otherwise burdensome for customers, to deter them from getting a rebate or refund they are due or canceling a subscription or membership they no longer want -- all with the goal of maximizing profits."
The Federal Trade Commission proposed a rule that would require companies to make it easier to cancel subscriptions or services while the Federal Communications Commission is considering similar rules.
The Transportation Department is also presenting a rule that would require airlines to give automatic cash refunds to customers instead of leaving the burden to customers to navigate a series of steps to receive the funds back.
Health and Human Services is leading an effort to allow patients to submit their healthcare claims online, saving time and avoiding complications for users. The White House said the leading healthcare companies often require claims to be printed out and mailed to them.
The Consumer Financial Protection Bureau is starting the rulemaking process to address what it called "doom loops," where companies force customers into a series of electronic prompts, computer bots and chats to prevent users from talking to a live agent.
That rule process is being watched closely by other agencies where the "doom loop" has become the top complaint of customers trying to access assistance from companies.
The White House said the FTC is also looking into rules requiring companies to create a means for customers to report poor service and the crackdown on fake reviews. The Department of Education also is seeking guidance on streamlining communication between schools and parents.
The action appears to go hand-in-hand with the Biden administration's attack on so-called "junk fees" across various sectors of the economy, including the cost of textbooks, late fees, banking overdraft fees and hidden healthcare costs.
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