Plans for a renewed multi-agency regulatory agenda released by the White House will tackle corporate practices that officials say rob consumers not of their money, but their time. The initiatives encompassed in the plan are regulations the Consumer Financial Protection Bureau (CFPB) is considering, as well as agency rules governing the use of artificial intelligence.
The “Time is Money” initiative was drawn up to root out company practices designed to needlessly drag out certain processes to maximize profits. The plan was launched in preparation for Vice President Kamala Harris’ unveiling of her economic policy as part of her 2024 presidential campaign platform, according to a report by CNBC.
“Americans know these practices well: it’s being forced to wait on hold just to get the refund we’re owed; the hoops and hurdles to cancel a gym membership or subscription; the unnecessary complications of dealing with health insurance companies; the requirements to do in-person or by mail what could easily be done with a couple of clicks online; and confusing, lengthy, or manipulative forms that take unnecessary time and effort,” the White House fact sheet on the initiative stated.
“These hassles don’t just happen by accident,” it explained. “Companies often deliberately design their business processes to be time-consuming or otherwise burdensome for consumers, in order to deter them from getting a rebate or refund they are due or canceling a subscription or membership they no longer want – all with the goal of maximizing profits.”
Among the new initiatives was a list of rulemakings by the CFPB specifically targeting customer service “doom loops” and the use of ineffective chatbots by some financial institutions.
One of the suggested rules would require companies under its jurisdiction to let customers speak with a human representative with a single touch of a button, as opposed to having to wind through menu options and automated recordings before being able to find a live person for assistance.
As for automated customer service chatbots, consumers have reported issues like inaccurate information or experiencing a run-around when requesting to speak to a live person.
“The CFPB will identify when the use of automated chatbots or automated artificial intelligence voice recordings is unlawful, including in situations in which customers believe they are speaking with a human being,” the fact sheet stated.