No matter how rich, powerful, or mature we get, some frustrating encounters cannot be outrun. And like death and taxes, customer service calls seem to be inevitable. But a new U.S. administrative policy could make such regular occurrences at least a bit easier. A new regulation, the “Time Is Money Initiative,” proposes ways to curb the corporate practices that, in the past, have enabled companies to put the burden of customer service on the customer. This proposal, compiled through the cooperation of multiple federal agencies, including the Federal Trade Commission (FTC) and Consumer Financial Protection Bureau (CFPB), suggests rules to simplify the process of cancelling subscriptions and reoccurring payments, in an effort to address a widespread customer complaint. Its “click to cancel” provision would require companies to make cancellation options simpler and more immediate. Other mandates attempt to reduce companies’ uses of automated systems and guarantee consumers ready access to live agents. Whereas the U.S. Chamber of Commerce has come out against the proposed legislation, arguing that the new regulations would increase the operational costs for businesses and stifle innovation, many consumers have responded favorably. Companies have already begun to draft their own responses, including introducing more efficient cancellation and assistance platforms and revising cancellation policies to provide more transparency. Such measures might help them enhance customers’ loyalty and their own brand reputation, which could offset the potential increase in operational costs. Subscription services in the more regulated environment envisions by this bill might see shrinking profit margins and higher costs, or else increased innovation and creative solutions to the new requirements. Only time will tell.

Sources: Sara Ruberg, “Canceling Memberships Is a Pain. New Biden Administration Rules Aim to Make It Easier,” The New York Times, August 15, 2024; Adam Hardy, “White House Takes Aim at ‘Corporate Tricks’ that Waste People’s Time and Money,” Money, August 12, 2024; Adam Marshall, “The Government Wants to Make Cancelling Subscriptions Easier,” Tech.co, August 13, 2024