Biden’s ‘Time is Money’ Initiative Targets the Endless Hoops Companies Force Consumers to Jump Through to Cancel Memberships and Get Refunds

The Biden administration rolled out a major new initiative on Monday, called “Time is Money,” aimed at putting an end to the frustrating and time-wasting tactics many corporations use to hold on to consumers’ money. This multi-agency regulatory push is designed to streamline consumer processes, making it easier for people to cancel subscriptions, get refunds, and receive quality customer service without jumping through endless hoops.

“We’ve all been there,” said Neera Tanden, White House domestic policy advisor, during a briefing on Friday. “You want to cancel a gym membership or a subscription service that was a breeze to sign up for, but when you try to cancel, you’re stuck on hold for 20 minutes or forced to go in person just to opt out.”

The “Time is Money” initiative comes at a pivotal moment as Vice President Kamala Harris is set to reveal her campaign’s first economic policy plans this week. This initiative could provide a platform for Harris to advance the Biden administration’s consumer protection agenda in new and impactful ways.

Key elements of the initiative include a series of new rules from the Consumer Financial Protection Bureau (CFPB) targeting what officials refer to as “doom loops”—those never-ending automated customer service menus that make it nearly impossible to speak with a human. The CFPB is set to crack down on ineffective chatbots and automated systems, especially when they deceive customers into thinking they’re interacting with a real person.

At the same time, the Federal Communications Commission (FCC) is launching a parallel inquiry to see if these new customer service standards should be extended to telecom giants, including phone, broadband, and cable companies. This follows in the footsteps of the Federal Trade Commission’s (FTC) “Click to Cancel” proposal, which mandates that companies make canceling subscriptions just as easy as signing up for them.

Health insurance companies are also in the crosshairs of this new initiative. Health and Human Services Secretary Xavier Becerra, along with acting Labor Secretary Julie Su, are pushing insurers to allow policyholders to submit claims online, cutting down on the bureaucratic hassle that currently plagues the system. They’re sending a letter to insurance companies and group health plans, urging them to take concrete steps to make interacting with health coverage faster and more straightforward.

While some aspects of the “Time is Money” initiative build on previous actions—such as the Department of Transportation’s rule from April that requires airlines to issue automatic cash refunds for canceled flights—this effort represents a broader and more coordinated approach to consumer protection. Another earlier move cited by the White House includes the FTC’s June 2023 proposal targeting companies that manipulate customer feedback with fake reviews.

Importantly, none of these new regulations will require congressional approval, allowing the Biden administration to sidestep potential roadblocks in the Republican-controlled House of Representatives. This initiative is the latest in a series of aggressive consumer protection measures the administration has taken over the past three years, including a tough stance on antitrust issues and cryptocurrency, which have ruffled feathers on Wall Street.

Despite the firm approach, a senior administration official emphasized that the goal isn’t to shame corporations across the board. Instead, the “Time is Money” initiative represents what the official described as “a new frontier of consumer protections,” ensuring that businesses can no longer exploit consumers’ time for profit.