White House proposes new rules to cancel subscriptions

US

WASHINGTON (NEXSTAR) – The Biden administration is a launching a new effort to crackdown on unwanted subscriptions and memberships.

The FTC is finalizing a rule that would force companies to make it easier to opt out of a service.

The FCC is proposing a new rule to eliminate so called “doom loops” where customers can not get ahold of human customer service agents.

“They’re using technology against us. They’re using time against us,” says Robert Weissman of Public Citizen.

The consumer advocacy group is applauding the Biden administration’s crackdown.

Weissman says there’s been a rise in bad faith practices from corporations over the past decades.

“A rise in a real rip off economy,” says Weissman, “using new tricks to systematically rip off consumers making it really hard for us to get refunds or change flights”

The U.S. Chamber of Commerce did not respond to our request for comment. The organization is currently fighting a similar federal initiative to ban hidden fees.

The Chamber of Commerce argues it would be impossible to implement.

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