White House initiative addresses cancellations, health claims and airline refunds

The White House has launched a new initiative aimed at helping consumers get their time and money back from corporations that make it difficult to cancel subscriptions, file health claims online or issue airline refunds . The initiative, called 'Time Is Money', also requires companies to stop directing customers to endless automated loops of phone menus or ineffective chatbots when seeking help.

The initiative also calls for the Department for Education to improve communication between parents and schools, and greater accountability for how businesses handle online reviews. President Joe Biden and Vice President Kamala Harris are championing the initiative, which aims to combat the “headaches and hassles” consumers face when dealing with corporations.

The administration argues that these inconveniences are not accidental, but are often deliberately designed by companies to be time-consuming or burdensome for consumers. This is to discourage them from getting a discount or refund they have to pay, or canceling a membership or membership they no longer want, all with the goal of maximizing profits.

This initiative is part of a wider campaign against poor customer service practices launched in 2022, targeting issues such as excessive concert ticket fees, credit card late fees and surprise charges. That campaign has already led to some changes, with companies like Airbnb and Ticketmaster announcing they would display “all-inclusive” pricing, showing customers all charges and fees before a purchase.

Specific “Time Is Money” proposals include a new Federal Trade Commission rule that would make canceling a subscription or service as easy as signing up. It also includes automatic reimbursements from airlines if a flight is canceled or “significantly changed” and a revamp of health insurance claims processing to make it easier to submit claims online. Another proposal is a rule by the Consumer Financial Protection Bureau that would eliminate “conviction loops,” allowing customers to contact a human with a single button over the phone.

The initiative also plans to crack down on companies that post fake reviews online, delete negative reviews or pay for positive reviews. The Department for Education will provide guidance on how schools can improve communication with parents.

In addition to these proposals, the White House has created a 'Time Is Money' web portal where citizens can share their experiences and suggest other federal actions.