The US government wants to make it easier for you to click the ‘unsubscribe’ button

WASHINGTON – In the name of consumer protection, a number of US federal agencies are working to make it easier for Americans to click the unsubscribe button on unwanted subscriptions and recurring payment services.

A new government-wide initiative called “Time is Money” includes implementing new regulations and promising more for industries ranging from health and fitness associations to media subscriptions.

“The government is cracking down on all the ways that companies, through paperwork and wait times and general aggravation, waste people’s money and waste people’s time and actually hold their money,” said Neera Tanden, policy advisor inside the White House, told reporters on Friday in advance. of the ad.

“Essentially, in all of these practices, companies are either delaying service for you or really trying to make it so difficult to cancel service that they are able to hold onto your money for longer and longer,” Tanden said. They don’t happen by accident – ​​they have huge financial consequences.”

Efforts launched Monday include a new Federal Communications Commission inquiry into the possibility of imposing requirements on communications companies that would make canceling a subscription or service as easy as signing up for one.

The Federal Trade Commission in March 2023 started “click to cancel” regulation, requiring companies to allow customers to end subscriptions as easily as they started them.

Also on Monday, the heads of the departments of Labor and Health and Human Services are asking health insurers and group health plans to make improvements to customer interactions with their health coverage and “in the coming months will identify additional opportunities to improve consumer quality.” interactions with the health care system,” according to a White House summary.

The government has already launched several initiatives aimed at improving the consumer experience.

In October, the FTC announced a proposed rule to ban hidden and fake junk e-mail feeswhich can mask the total cost of concert tickets, hotel rooms and utility bills.

In April, the Department of Transportation finalized rules that would require airlines to automatically issue cash refunds for things like delayed flights and better disclose baggage fees or cancellations of reservations.

The department has also taken action against individual companies accused of misleading customers.

In June, the Department of Justice, referred by the FTC, filed a lawsuit against software maker Adobe and two of its executives, Maninder Sawhney and David Wadhwani, for allegedly pressuring consumers into the company’s “annual paid monthly” subscription without adequately disclosing that canceling the plan in the first year could cost hundreds of dollars.

Dana Rao, Adobe’s legal counsel, said in an emailed statement that Adobe disagrees with the lawsuit’s characterization of its business and “will refute the FTC’s claims in court.”

“Early termination fees amount to a minimal impact on our revenues, representing less than half a percent of our total revenue globally, but are an important part of our ability to offer customers a choice of plans that balance costs and commitments,” Rao said. .

Some business advocates are not fans of the government’s overall efforts to crack down on trash fees.

Sean Heather, senior vice president of international regulatory affairs and antitrust at the U.S. Chamber of Commerce, said the initiative is “nothing more than an attempt to micromanage companies’ pricing structures, often harming companies’ ability to offer consumers options in different price ranges”. ”