As detailed in a Fact Sheet posted to the White House website, the Biden-Harris Administration has recently launched a significant new initiative, “Time Is Money,” aimed at cracking down on corporate practices that add unnecessary hassles and costs for consumers. This government-wide effort targets various industries, including those involving customer service and automated systems, and could have substantial implications for companies operating in the cloud contact center and customer engagement space.

The following is a summary of key actions that may impact your business and steps you may consider taking to address these developments.

Key Initiatives and Their Impacts:

1. Cracking Down on Customer Service “Doom Loops”:
   • The Consumer Financial Protection Bureau (CFPB) is set to initiate rulemaking that would require companies to allow customers to speak with a human by pressing a single button. The FCC is considering similar requirements for the communications industry, including phone, broadband, and cable companies. Additionally, health plan providers may face similar pressures from the Department of Health and Human Services (HHS) and the Department of Labor (DOL).
   • Impact: These proposed rules could increase operational costs and require significant changes to existing automated customer service systems. Companies in the cloud contact center industry should prepare for potential new compliance obligations that may arise from these regulations.

2. Addressing the Limitations of Customer Service Chatbots:
   • The CFPB plans to issue rules or guidance to crack down on ineffective chatbots used by financial institutions. This includes identifying when the use of chatbots or automated AI voice recordings is unlawful, particularly when customers believe they are speaking with a human.
   • Impact: Cloud contact centers may need to enhance their chatbot technologies to meet higher standards of effectiveness and transparency. Failure to comply could result in regulatory action or reputational damage.

3. Making it Easier to Cancel Subscriptions and Memberships:
   • The Federal Trade Commission (FTC) has proposed a rule requiring companies to make it as easy to cancel a subscription or service as it was to sign up. The FCC is exploring whether to extend similar requirements to the communications industry.
   • Impact: Companies offering subscription-based services may need to simplify their cancellation processes to comply with these potential new rules, requiring updates to their customer engagement platforms.

4. Ensuring Accountability for Bad Customer Service:
   • The FTC is also targeting illicit review practices, including fake reviews and the suppression of negative feedback. These actions are designed to ensure consumers can rely on honest reviews when selecting services.
   • Impact: Cloud contact centers may need to reevaluate how they manage customer feedback and reviews to ensure compliance with new rules that aim to protect consumer trust.

5. Improving Access to Health Claims Submissions:
   • HHS and DOL are pushing health insurers and group health plans to simplify the process of submitting health claims online, potentially impacting companies that provide customer service solutions to the healthcare industry.
   • Impact: Companies serving the healthcare sector may need to upgrade their systems to allow for easier online submissions and more user-friendly customer service experiences.

The “Time Is Money” initiative reflects a broader regulatory trend toward protecting consumers from time-wasting and frustrating practices. By taking proactive steps now, businesses can mitigate the risks and potential costs associated with these forthcoming changes.

Please feel free to contact us if you would like to discuss these developments further or if you need assistance in navigating these new regulatory challenges. If you are an existing firm client, you are invited to contact the attorney responsible for your account or, in the alternative, contact the firm’s managing partner, Jonathan Marashlian at jsm@commlawgroup.com.