The administration of President Joe Biden wanted to cut wait times for consumers whenever they seek helplines on different kinds of services such applying for insurance claims or cancelation of subscriptions.
Reuters reported that the initiative, known as "Time is Money," aims to crack down on processes that seem to simply prolong the time that customers need to wait for a particular service.
Neera Tanden, Biden's domestic policy adviser mentioned that initiative, among others, wants to address deliberately complex procedures as well as endless hold times.
Tanden cited the agony that consumers go through to cancel a subscription, saying that the process of cancellation must not take 45 minutes because it only took a single click for people to subscribe.
In addition, consumers must not be compelled to print complex insurance forms just to be able to file a claim. Because of these things that lead to such a long delay, Tanden said that it often causes consumers to give up, giving companies the opportunity to continue holding on to money that consumers could use elsewhere, were it not for the delay the procedures cost them.
"These seemingly small inconveniences don't really happen by accident. They have huge financial consequences," Tanden said in U.S. News.
The efforts of the Biden administration aims to ease burden on voters who were weighed by inflation, which has somehow diminished support for the Democrats. Vice President Kamala Harris is also making a similar case in her campaign.
According to Tanden, the new rules and efforts by the government will be using already existing oversight tools and they do not aim to "shaming corporations writ large." The efforts also do not require congressional approval.
The Federal Trade Commission (FTC) is open to comments on a proposed rule that it is proposing, which would require companies to make it easier for consumers to cancel subscriptions or services.
On Monday, the FTC will be setting similar requirements for broadband, cable and cellphone services.
The Labor and Health and Human Services departments will also be communicating with large healthcare companies and insurers, urging them to provide a means for the insured to file forms online.
In addition, the Consumer Financial Protection Bureau is set to issue regulations aimed at cracking down on "time-wasting chatbots" used by banks, the official said.
