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News » Biden administration targets frustrating customer service practices

Biden administration targets frustrating customer service practices

biden-administration-targets-customer-service
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WASHINGTON, D.C., UNITED STATES — U.S. President Joe Biden’s administration recently launched a series of government-wide actions under the initiative “Time Is Money” to alleviate consumer frustrations.

This initiative aims to address the persistent issues of “doom loop” customer service calls, deceptive reviews, and complex subscription cancellations, which are often perceived as tactics to deter consumers from actions that could negatively impact a company’s profits.

Neera Tanden, director of the Domestic Policy Council, highlighted that these practices are intentionally designed to frustrate consumers into giving up. 

“This work came from scores of conversations with people — consumer advocates and others — about practices that are really designed to get people crazy and, honestly, they’re really designed for you to give up,” Tanden stated.

Streamlining consumer-to-human connections

One of the main targets of this initiative is the complex phone menus that hinder consumers from reaching a human representative. 

The Consumer Financial Protection Bureau (CFPB) is expected to propose rules requiring companies, such as banks and lenders, to simplify this process. 

Similarly, the Federal Communications Commission (FCC) is considering similar requirements for telecommunications companies, while the Health and Human Services Department and the Department of Labor are urging health plan providers to improve their customer service pathways.

Simplifying subscription cancellations

The Federal Trade Commission (FTC) is also taking steps to make subscription and membership cancellations as straightforward as the sign-up process. 

A proposed “click to cancel” rule, first introduced in March 2023, aims to streamline cancellations and is expected to be finalized by fall.

Combating fake reviews and misleading chatbots

To address deceptive review practices, the FTC has proposed a rule to ban the suppression of negative reviews and the creation of fake positive ones. This rule, introduced in June 2023, is currently in the rulemaking process. 

Additionally, the CFPB plans to issue guidance against the use of chatbots and AI in customer service when consumers believe they are interacting with a human.

Enhancing healthcare and education interactions

The administration is also focusing on improving customer service in health care and education. The Office of Personnel Management aims to simplify online submissions for health benefits, while the Department of Education plans to streamline communications between parents and schools.

Looking ahead

The Biden administration is actively seeking public input on how to enhance consumer services further. Suggestions are being solicited on topics such as refund processes, human interaction in customer service, and subscription management. This initiative reflects the administration’s commitment to ensuring that consumer choices drive the market and prevent companies from exploiting consumers for profit.

These efforts are part of a broader strategy to ensure consumer protection and improve the overall customer service experience across various sectors. As the administration continues to refine these proposals, the public’s feedback will play a crucial role in shaping the future of consumer interactions in the United States.

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