New Federal Rule Proposes Cancellation for Subscriptions: On Monday, the Biden administration announced a set of new policies to prevent “headaches and hassles that waste Americans’ time and money.” These policies will act as a protection for consumers against businesses.
Biden administration with the help of the Federal Trade Commission (FTC) and the Federal Communications Commission (FCC) will ask businesses to make it simple to to cancel memberships and subscriptions.
ABC News reported that a new rule from the Consumer Financial Protection Bureau will require companies to let customers press a single button to get through automated customer service “doom loops” and talk to a real person.
Also Read: Study Says: Artificial Sweetener Causes Blood Clotting and Increases Risk of Heart Disease
In a call with media, White House Domestic Policy Advisor Neera Tanden added, “For a lot of services, it takes one or two clicks on your phone to sign up. It should take one or two clicks on your phone to end the service.”
This new policy is also applicable to gym memberships and internet subscriptions.
The administration will also ask health insurance companies to let people file claims online instead of making printouts and mail-in forms to get coverage.
Neera Tanden also said, “Essentially in all of these practices, the companies are delaying services to you or, really, trying to make it so difficult for you to cancel the service that they get to hold on to your money longer and longer. And what that means is, ultimately, consumers, the American public, is losing out.”
Biden administration also reported that the new policies were implemented from Monday while in some other places, it might take more than a week or month for the policies to come into effect.
When Americans are facing high prices and persistent inflation, the Biden administration is going after a wide range of industries and companies.
By taking these measures, the administration is trying to boost voter trust in the economy before the elections by making efforts to lower daily costs such as forgiving student loan debt and reducing the prices of prescription drugs.
After the worst job report, the stock market became unpredictable thus this made it important for Democrats to show voters that they can manage the economy.
The Biden administration is also trying to reduce the daily bills and offset higher prices by going after “junk fees” that are added to hotel and ticket prices making airlines automatically pay passengers for delayed flights, and getting rid of medical debts from credit reports.
Also Read: Wordle Today: Check Out Wordle Answers and Hints For August 12 #1150
