Dive Brief:
- The Biden-Harris administration on Monday launched “Time Is Money,” a government-wide initiative to crack down on businesses that purposefully provide poor customer service in an effort to maximize profits.
- The initiative aims to make it easier for customers to cancel subscriptions and cracks down on the practice of routing customers through “doom loops” of menu options to access customer service. As part of the effort, the Consumer Financial Protection Bureau will issue guidance on chatbot usage and when customers have a right to talk to a human.
- “Companies often deliberately design their business processes to be time-consuming or otherwise burdensome for consumers, in order 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 administration said in a statement. “In addition to robbing hardworking families of their valuable time and adding frustration to our daily lives, these hassles cost us money.”
Dive Insight:
The Biden-Harris administration has made improving customer service — inside and outside the federal government — a cornerstone of its consumer protection efforts.
“Americans are tired of being played for suckers,” White House press secretary Karine Jean-Pierre said during a press briefing Monday. “President Biden and Vice President Harris will continue to use every tool available to protect Americans from corporate greed and practices that hit Americans in their pocketbook.”
Last year, the Federal Trade Commission proposed a rule with a “click to cancel” provision that would make canceling a subscription or membership as easy as signing up for one.
The federal government will also take steps to allow customers to submit health claims online, and the initiative includes efforts to protect airline consumers. The DOT issued a rule this spring to require airlines to provide automatic cash refunds unless otherwise requested.
Clunky chatbots are another major source of frustration among customers. An EY survey of over 23,000 customers found that half say chatbots are ineffective in resolving queries. Three in 10 cited poor customer service or difficulty connecting with agents as major frustrations with their digital shopping experience.
The White House is requesting consumers submit their ideas about how the federal government can hold companies accountable and give their time back.
