On Monday, President Joe Biden’s administration unveiled an initiative aimed at simplifying the process for Americans to unsubscribe from unwanted memberships and recurring services. Titled “Time Is Money,” this program seeks to bolster consumer protection by implementing new regulations across various sectors such as healthcare, fitness, and media subscriptions.
Biden, who recently stepped back from his reelection bid and endorsed Vice President Kamala Harris for president, is keen on pushing through these reforms before his term ends in January.
Neera Tanden, the White House domestic policy adviser, emphasized the administration’s dedication to addressing corporate practices that can waste consumers’ time and money. She articulated that these small annoyances can add up to significant financial implications.
“We’re aiming to cut through the red tape that companies often use to complicate cancellation,” Tanden noted during a recent briefing.
As part of this initiative, the Federal Communications Commission (FCC) has begun an inquiry to determine if canceling a subscription should be as straightforward as signing up. The Federal Trade Commission (FTC) is also actively involved, having initiated rules in March 2023 for easier cancellation processes.
In addition, the Departments of Labor and Health and Human Services are working with health insurance companies to enhance customer service in their health plans. The White House plans to identify additional ways to optimize consumer experiences in healthcare over the coming months.
This initiative supports ongoing government efforts to improve overall consumer experiences. Recently, the FTC proposed banning hidden and misleading junk fees commonly found in transactions for concert tickets and hotel bookings. Moreover, the Consumer Financial Protection Bureau revealed that families face unexpected fees related to school lunches.
Earlier this month, the Department of Transportation pitched a rule to prevent airlines from charging extra fees for parents wanting to sit next to their young children on flights. They also finalized rules to ensure cash refunds for delayed flights and transparent disclosure of fees.
Furthermore, the Department of Justice has taken legal steps against companies accused of misleading practices. Notably, they filed a lawsuit against Adobe over its subscription model, claiming it obscured the costs associated with early cancellation. Adobe, however, disputes these claims and intends to fight back in court.
Despite the push for reform, some critics voice concerns. Sean Heather, a senior VP at the U.S. Chamber of Commerce, criticized the initiative as excessive government interference that could limit business flexibility in pricing.