The Biden administration has launched a sweeping consumer protection campaign titled “Time Is Money,” targeting corporate practices that exploit consumers through deliberately poor customer service, hard-to-cancel services, and other manipulative tactics. This initiative is part of a broader effort by the administration to hold corporations accountable and protect consumers from unfair business practices.
The “Time Is Money” initiative is the latest in a series of consumer protection efforts under President Joe Biden’s administration. The White House has made it clear that improving customer experience and protecting consumers from corporate exploitation are key priorities. This campaign builds on previous initiatives, including a 2021 executive order aimed at streamlining federal services and recent efforts to crack down on junk fees.
Neera Tanden, the White House domestic policy adviser, emphasized the administration’s commitment to these issues, stating, “The administration is cracking down on all the ways that companies—through paperwork, hold times, and general aggravation—waste people’s money, waste people’s time.”
The campaign involves multiple federal agencies, each tasked with addressing different aspects of corporate exploitation. One of the most significant components is the Federal Trade Commission’s (FTC) proposed “click to cancel” rule. This rule, first announced in March 2023 and currently under public review, would require companies to make it as easy for consumers to cancel a subscription or service as it was to sign up. This rule aims to eliminate the common practice where companies make it difficult for consumers to cancel services, hoping they will simply give up and continue paying.
Tanden highlighted the issue during a press briefing, saying, “It took one or two clicks to sign up, but now to end your subscription or cancel the membership, you have to go in person or wait on hold for 20 minutes. These seemingly small inconveniences don’t really happen by accident. They have huge financial consequences.”
Another key component of the initiative is the Consumer Financial Protection Bureau’s (CFPB) forthcoming rule designed to combat “doom loop” customer service experiences. This rule would require companies under the CFPB’s jurisdiction to provide callers with a direct option to speak to a human being, rather than being stuck in automated systems that waste time and frustrate consumers.
The Federal Communications Commission (FCC) is also involved in the campaign, considering similar rules for cable, phone, and internet companies. Additionally, the Department of Transportation (DOT) has already implemented a rule requiring airlines to automatically refund passengers for canceled or significantly altered flights.
Corporate exploitation often manifests in seemingly minor inconveniences that, over time, have significant financial and emotional impacts on consumers. The administration’s crackdown aims to address these practices by enforcing transparency and fairness in how companies interact with their customers.
Tanden pointed out the broader economic and social consequences of these practices, noting that they disproportionately affect vulnerable populations who may not have the time, resources, or knowledge to navigate complex cancellation processes or fight for refunds. “These tactics contribute to the larger issue of economic inequality, where corporations exploit the most vulnerable members of society,” she said.
While the “Time Is Money” initiative has been welcomed by consumer advocates, it is not without its challenges. The regulatory process can be lengthy, involving rounds of public input and negotiations that often take a year or longer. Additionally, because these initiatives have been implemented through executive actions, they are vulnerable to reversal if there is a change in political leadership.
Corporations and industry groups are expected to push back against these regulations, arguing that they impose unnecessary burdens on businesses. However, the administration is likely banking on the popularity of these consumer protections to counter any resistance.
Tanden was careful to clarify that the regulations are not about “shaming corporations writ large,” but rather ensuring that businesses treat their customers fairly and transparently. “We’re not trying to vilify all businesses,” she said. “We’re simply saying that consumers deserve better.”
The “Time Is Money” initiative is part of a broader consumer protection agenda under the Biden administration. The FTC, under the leadership of Lina Khan, has stepped up antitrust enforcement and recently announced a crackdown on junk and hidden fees. These efforts are designed to protect consumers from deceptive business practices and ensure a fairer marketplace.
As Tanden explained, “Americans are tired of being played for suckers. This administration is committed to making sure that doesn’t happen anymore.”
“This is about fairness. It’s about making sure that the rules work for everyone, not just the powerful.”
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