White House launches crackdown on customer service 'doom loops' in consumer-focused push
The White House announced Monday a new government-wide initiative to crack down on customer service “doom loops," part of a consumer-focused push to fend off "all the ways that corporations add unnecessary headaches and hassles to people's lives."
The announcement specifically cited practices such as waiting on hold to get a refund, the roadblocks to cancel a gym membership or subscription, and the "requirements to do in-person or by mail what could easily be done with a couple of clicks online" as ones the Biden administration is hoping to eliminate.
The consumer-focused initiative comes as Vice President Kamala Harris is making her pitch to voters in the highly contested presidential race with former President Donald Trump. Harris has energized the Democratic base since taking over for Biden, raising large sums of money and drawing big crowds at rallies across the country last week.
Automatic airline refunds, customer service chatbots mentioned in 'Time Is Money' initiative
Other goals of the White House initiative, called "Time Is Money," include:
Making it easier to cancel subscriptions and memberships
Requiring airlines to refund airfare when your flight is canceled or significantly changed, and you are not offered, or choose not to accept, alternatives such as rebooking.
Allowing you to submit health claims online.
Cracking down on customer service "doom loops" by requiring companies to let customers talk to a human by pressing a single button.
Ensuring accountability for companies that provide bad service by stopping marketers from using fake reviews, suppressing honest negative reviews, and paying for positive reviews.
Cracking down on ineffective chatbots in lieu of customer service.
Helping streamline parent communication with schools.
"Americans are tired of being played for suckers, and President Biden and Vice President Harris are committed to addressing the pain points they face in their everyday lives," the White House said in the announcement Monday.
The initiative is prompting federal agencies like the Federal Trade Commission and Department of Transportation, among others, to propose rules and call for action in accordance with the above goals.
For example, the FTC has proposed a rule that would require companies to make it as easy to cancel a subscription or service as it was to sign up for one. The DOT also has a new automatic refunds rule that requires airlines to pay you back the airfare when your flight is canceled or significantly changed for any reason, and you are not offered, or choose not to accept, alternatives such as rebooking, according to the White House.
White House says these hassles don't 'happen by accident'
The White House said in the announcement that companies "often deliberately" design their business practices to be time-consuming or otherwise burdensome for consumers in order to "deter them from getting a rebate or refund they are due" in order to maximize profits.
"In addition to robbing hardworking families of their valuable time and adding frustration to our daily lives, these hassles cost us money," the White House said in the announcement.
White House also cracking down on junk fees
The White House announced in March it is cracking down on junk fees, or the hidden costs and surcharges often found in travel and banking services.
"President Biden is calling on corporations to pass along savings to consumers by bringing prices down. He is cracking down on corporate rip-offs, including junk fees, price gouging and shrinking packages to hide price increases – 'shrinkflation,'" the White House said in the March announcement.
Gabe Hauari is a national trending news reporter at USA TODAY. You can follow him on X @GabeHauari or email him at Gdhauari@gannett.com.
This article originally appeared on USA TODAY: White House cracks down on customer service 'doom loops' and chatbots
