Biden calls for new rules for subscriptions and customer service

The White House is taking action against deceptive consumer practices (Photo: Frank Zubor/Shutterstock).

The federal government is launching a new initiative to combat the “unfair” practices of many companies towards their customers.

The initiative, called Time is Money, is a new government-wide initiative to be implemented in the coming months. Key measures include:

• The Federal Trade Commission (FTC) has proposed a rule that, if implemented as proposed, would require companies to make canceling a subscription or service as easy as signing up. The agency is currently reviewing public comments on its proposal.
• To counteract “vicious loops” in customer service that the Biden-Harris administration says force customers seeking help from a real human through a series of menu options and automated records, the Consumer Financial Protection Bureau (CFPB) will initiate a rulemaking process that would require companies under its jurisdiction to allow their customers to communicate with a human at the touch of a button.
• The FTC has proposed a rule that, if implemented as proposed, would prevent marketers from engaging in improper review and recommendation practices, such as using fake reviews, suppressing honest negative reviews, and paying for positive reviews, which deceive consumers seeking genuine feedback on a product or service.
• The CFPB plans to issue rules or guidelines to crack down on chatbots used in place of customer service. The CFPB will determine when the use of automated chatbots or automated voice recordings using artificial intelligence is unlawful, including in situations where customers believe they are speaking to a human.