In an attempt to protect consumers, multiple U.S. federal agencies are joining forces to simplify the process of unsubscribing from unwanted memberships and recurring payments. The government has launched a comprehensive initiative named “Time Is Money,” which involves the introduction of new regulations across various industries such as healthcare, fitness, and media subscriptions.
Neera Tanden, the White House domestic policy adviser, emphasized that companies often use lengthy procedures and other obstacles to delay cancellations and retain customers’ money. The government’s goal is to address these tactics that result in financial burdens on consumers.
One of the measures being implemented is a Federal Communications Commission inquiry to consider imposing requirements on communication companies that would streamline subscription cancellation processes. The Federal Trade Commission has also initiated “click to cancel” rulemaking, which obliges companies to enable customers to terminate subscriptions as easily as they initially signed up for them.
Furthermore, the Department of Labor and the Department of Health and Human Services are collaborating to enhance customer interactions with health insurance providers and group health plans. Meanwhile, the government has already introduced initiatives to enhance consumer experiences, such as proposing a rule to ban concealed fees and enforcing regulations on airlines to issue cash refunds for flight delays.
Despite these efforts, some business representatives, like Sean Heather from the U.S. Chamber of Commerce, criticize the government’s actions as an interference in businesses’ pricing structures. Heather argues that the initiative could limit businesses’ ability to offer customers a variety of pricing options.
In response to government actions, Adobe, a software company, is facing legal challenges for allegedly misleading consumers into costly subscription plans. However, Adobe’s general counsel, Dana Rao, argues that the termination fees are a minimal part of their global revenue and play a crucial role in providing customers with plan choices that balance cost and commitment.
