The first half of President Joe Biden’s term was focused on doing big things. His initial plans out of the gate, compiled in the “Build Back Better” agenda, were sweeping and transformative. The legislation that was spun out of that package — including the Inflation Reduction Act, the massive infrastructure bill and the CHIPS and Science Act — were major investments in the country’s future. Now though, as we approach the final few months of what will be his single term, Biden is going smaller.
At first glance, the “Time Is Money” initiative that Biden and Vice President Kamala Harris announced Monday could be seen as relatively insignificant. But in this case, smaller doesn’t mean less important or impactful. In fact, in setting his White House’s sights on the ways corporations sap Americans’ time and money, Biden is making an argument that there’s plenty the federal government can do to improve the way we live.
The new effort from the Biden-Harris administration is focused on “the corporate practice of giving people the run around, wasting their precious time and money,” according to the White House’s fact sheet. In particular, the aim is tackling the seemingly minor inconveniences that add up to major hassle at the expense of consumers:
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. These hassles don’t just happen by accident. 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.
Accordingly, the Biden administration is pulling what levers it can to combat this scourge — or at least getting the ball rolling. Given how long it generally takes for a proposed federal rule to go from concept to policy, many of the changes listed won’t be felt until after the election. By the same token, though, it’s important that the process to get these rules into place begin sooner rather than later.
The only finalized policy among those listed as part of the “Time Is Money” initiative is the Transportation Department’s much-lauded (and promoted) rule that requires airlines to provide automatic refunds for canceled flights. Next furthest along are the Federal Trade Commission’s proposed rules that would require that companies make it as easy to cancel a subscription as it is to sign up for one. The FTC is reviewing public comments on that proposed rule. Another proposed rule from the FTC would “stop marketers from using illicit review and endorsement practices such as using fake reviews, suppressing honest negative reviews, and paying for positive reviews,” which would make online shopping much easier after years of decline.
Meanwhile, the Consumer Financial Protection Bureau has two rules in the works. One would cut back on the “doom loops” that force callers to listen to long messages before they reach an actual human being. The other would limit how banks and other corporations use chatbots and artificial intelligence voice recordings to give users the runaround. The remaining policies listed are more requests than rules, including a call from the Department of Health and Human Services to have health insurance providers make the process to submit claims far less cumbersome.
This is exactly the kind of executive action that you’d expect from a president looking to get things done while Congress is deep in campaign season. Without the ability to pass major new legislation, the executive branch must get creative with its powers to get anything new done. These time-wasters are also a (literally) rich target for Biden politically, as you’d be hard-pressed to find someone who hasn’t had gripes about them. It also brings to mind Biden’s calling out companies for “shrinkflation” and the perennial call for the government to tackle the out-of-control number of spam calls reaching our phones.
Beyond the consumer protection side of things, I’d argue there’s a worker protection component to these policies, as well. All too often it’s the customer service worker following company policy who bears the brunt of consumer ire. In leveraging the government’s weight against these businesses, Biden is both providing a more equal playing field for purchasers and acting as a relief valve for those workers.
The one concern I have is that congressional Republicans could raise a fuss if they wanted to push back on any of these rules. The deadline has passed to lock in new federal rules that will be safe from a possible GOP trifecta’s having the ability to quickly overturn them next year. But it’s wild to imagine Republicans explicitly campaigning in favor of businesses’ having a right to make Americans’ lives harder and more annoying.
Conversely, these are policies that Harris will absolutely want to highlight as she barrels toward Election Day. Reuters reported Tuesday that she’ll deliver a policy-centered speech this week focused on plans “to lower costs for middle-class families and take on corporate price-gouging.” In doing so, Harris will be able to provide a sharp contrast between the GOP ticket’s dark plans for America and a brighter future — one in which canceling your gym membership no longer feels as taxing as a workout.
