The White House is setting plans in motion to make it more convenient for consumers to obtain refunds and cancel subscriptions. This comes in response to prevalent complaints about the complex nature of current processes and the lack of transparency in the business practices of some companies.
The Biden administration is making efforts to enact new rules that would protect consumers’ interests and discourage unfair trade practices. For instance, they propose to mandate businesses to provide clear, easy procedures for customers to end their subscriptions and gain their money back for unused services.
Further, the plan will create conditions where companies must receive the explicit consent of the consumer before they can charge them for automatic renewals of services. This would effectively end the common business strategy of making the cancellation of services difficult, thereby discouraging automatic renewals.
The government is also considering steps to prevent companies from redirecting or shifting customers to customer care representatives to convince them to stay. This has been a prevalent practice that often results in customers prolonging unwanted services. This aims to give more power to consumers, allowing them to cancel services through a click on a website.
In addition, the government intends to enact a ‘right to repair’ law. This would allow consumers to fix their devices or have them repaired by third parties without voiding their warranty, creating more competition in the repair business and leading to lower prices.
These steps are part of a larger plan to promote competition in the American economy and protect consumer rights. The White House is making these significant strides to level the playing field and ensure fair, transparent business practices are upheld.
