White House Aims To Crack Down on Consumer Hassles

The White House on Monday launched a new multi-agency initiative to crack down on chatbots, “doom loops,” and other corporate hurdles that have made it tough for consumers to get refunds, cancel memberships, or speak to customer service in recent years. 

Among the efforts: making it easier to cancel subscriptions and memberships; letting customers talk to a human by pressing a single button rather than being stuck in a “doom loop” of menu options; allowing customers to make health insurance claims online; and cracking down “on ineffective and time-wasting chatbots used by banks and other financial institutions in lieu of customer service.”

Not all of the measures are new. For instance, the Department of Transportation already issued a rule in April requiring airlines to give cash refunds to customers whose flights were delayed or canceled, or who didn’t receive services they paid for.

‘Time Is Money’ Push To Cut Red Tape

In a series of efforts it dubbed “Time is Money,” the Biden administration detailed a series of burdensome hassles customers are put through that are “wasting their precious time and money.” 

 “It’s being forced to wait on hold just to get the refund we’re owed; the hoops and hurdles to cancel a gym membership or subscription; the unnecessary complications of dealing with health insurance companies; the requirements to do in-person or by mail what could easily be done with a couple of clicks online; and confusing, lengthy, or manipulative forms that take unnecessary time and effort,” the White House said.

None of the initiatives will require Congressional approval, a senior administration official told CNBC. Since Republicans control the House of Representatives, passage would be difficult.