The story was featured in CNN’s What Matters newsletter. To receive it directly in your email inbox, sign up for free on their website. Although Democrats may have lost influence in Washington due to voter perception of the increasing cost of living, Joe Biden’s administration will be remembered for implementing a series of significant consumer protections before relinquishing power.
These measures, many of which are straightforward and widely accepted, have a tangible impact on people’s daily lives. Some key initiatives include capping monthly insulin costs at $35 for Medicare beneficiaries, enforcing a $5 limit on overdraft fees at banks, and introducing transparency regulations for concert tickets and short-term rentals. The government has also mandated airlines to issue refunds for certain cancellations and created a platform to compare airline consumer policies. Additionally, new rules aim to simplify cable and internet bills, block scam texts, and streamline online subscription cancellations.
Even as the Biden administration nears its end, more consumer-focused actions are in progress. The Consumer Financial Protection Bureau is working towards removing medical debt from credit reports, despite facing legal challenges. Recent reports suggest the Federal Trade Commission is preparing to sue Greystar Real Estate Partners for alleged deceptive pricing practices.
Consumer watchdog experts like Teresa Murray from the Public Interest Research Group and Susan Weinstock from the Consumer Federation of America commend the administration’s efforts to enhance consumer transparency and protection. They believe that under President Biden, significant strides have been made in addressing consumer challenges related to various sectors like airlines, events, and banking.
While some measures were implemented through legislation, many were achieved through regulatory processes. These initiatives reflect the administration’s commitment to empowering and safeguarding consumers in their financial decisions and interactions with businesses.
The administration typically introduces new regulatory measures to the public over the course of months and proceeds with a rulemaking process that is time-consuming and prone to legal challenges. Reversing established rules is a complex process that doesn’t happen overnight, and there is currently no indication that President Trump intends to retract any of the widely endorsed measures. However, there is a focus on reorganizing the government, as evidenced by the efforts of Elon Musk, CEO of Tesla and SpaceX, who is involved in streamlining government operations. Musk has expressed a desire to “delete” the Consumer Financial Protection Bureau (CFPB), an agency conceptualized by Senator Elizabeth Warren and established during the Obama administration in response to the 2008 financial crisis.
The CFPB has faced numerous legal challenges, including a recent case in which the Supreme Court upheld its existence against opposition from payday lenders. Notably, a rule proposed by the CFPB to limit credit card late fees to $8 is currently on hold due to litigation in Texas. President Trump has shown a general stance against regulations addressing climate change, pledging to roll back fuel economy standards for vehicles. His criticism of water pressure regulations during a press conference at Mar-a-Lago may have been directed at a recent rule by the Biden administration aimed at increasing water heater efficiency by 2029. While the Department of Energy argues that this regulation will reduce consumer utility costs, it could also raise the prices of new water heaters.
Despite his overall opposition to regulations, Trump has championed consumer protection initiatives during his presidency. The No Surprises Act, passed by Congress toward the end of his term and implemented under President Biden, prohibits unexpected medical charges from out-of-network healthcare providers. This law exemplifies the challenges in navigating Congress, even for measures enjoying widespread support, as it took years to come to fruition. Advocates for consumer rights, such as Tami Luhby from CNN, emphasize the importance of regulations that eliminate unfair fees and promote transparency in business practices. These measures, with bipartisan backing, are viewed as long-overdue steps that ensure a level playing field in the market, benefiting honest businesses and consumers alike.
In conclusion, the regulatory landscape under the Trump administration reflects a mix of efforts to streamline government operations while also challenging existing rules, particularly those related to consumer protection and environmental concerns. The complexities of the rulemaking process, coupled with legal opposition and political dynamics, underscore the intricate nature of policymaking in the United States. For more updates and detailed news coverage, visit CNN.com and create an account to access additional content and newsletters.
