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While Democrats may have experienced a decline in power in Washington, partly due to voters attributing the rising cost of goods to them, the Biden administration, upon relinquishing power, will also leave a legacy of robust new consumer protections. These measures, many of which are straightforward and uncontroversial, have a tangible impact on people’s daily lives. Here are some notable examples:
– Imposing limits on burdensome expenses: A law enacted by Democrats has capped the monthly cost of insulin for Medicare beneficiaries at $35, with certain drug manufacturers extending this price cap to a wider audience. Additionally, a new regulation by the Consumer Financial Protection Bureau has set a maximum overdraft fee of $5 at banks.
– Prohibiting concealment of costs from consumers: The Federal Trade Commission has cracked down on hidden fees for concert tickets, and new transparency guidelines now apply to short-term rental services. Penalties can be imposed for posting fake online reviews.
– Safeguards for travelers: Airlines are now mandated by the Department of Transportation to provide refunds for specific cancellations, and a government website has been established to compare consumer policies across different airlines. The Federal Aviation Administration has proposed a regulation to facilitate families with children sitting together on flights at no extra charge.
– Transparency in cable and internet billing: Recent rules by the Federal Communications Commission aim to simplify cable bills by presenting all-inclusive charges, along with introducing a “nutrition label” for internet service provider invoices.
– Combatting scam text messages: The FCC now requires mobile service providers to block suspicious text messages.
– Streamlining subscription cancellations: The FTC mandates that online subscriptions must include a “click to cancel” option.
Even as the Biden administration nears its conclusion, efforts continue to enhance consumer protections. For instance, the Consumer Financial Protection Bureau is working on excluding medical debt from most credit reports, although this ruling has faced legal challenges. Furthermore, the FTC is reportedly preparing to sue Greystar Real Estate Partners, the country’s largest landlord, for deceptive pricing practices.
When asked about the changes in the consumer landscape over the past four years, Teresa Murray, a director at Public Interest Research Group, highlighted several advancements and emphasized the progress towards increased transparency. Susan Weinstock, CEO of the Consumer Federation of America, commended President Biden for prioritizing consumer protection and addressing consumer dilemmas related to purchasing airline tickets, event tickets, and banking services.
These consumer-centric measures have been implemented through various avenues, including new legislation such as the insulin cost cap in Medicare and reimbursement regulations for airlines. Additionally, many initiatives have been carried out through rulemaking processes, where government agencies propose and solicit feedback on regulations.
The process of implementing and undoing regulations in the United States is not a swift one. After proposals are presented to the public over several months, they enter a rulemaking procedure that is time-consuming and can be challenged in court. Reversing these regulations is a complex task that cannot be carried out overnight, and it is uncertain whether President Trump intends to roll back any of the regulations deemed popular among the public. Nonetheless, there is a strong push within the current administration to reorganize the government, with figures like Elon Musk, CEO of Tesla and SpaceX, advocating for the elimination of the Consumer Financial Protection Bureau (CFPB).
Established during the Obama administration in response to the 2008 financial crisis, the CFPB has faced numerous legal battles to uphold its regulations. Notably, a rule limiting credit card late fees to $8 is currently on hold due to a lawsuit in Texas. Despite efforts to dismantle the CFPB, the agency was recently safeguarded from extinction by a Supreme Court ruling that dismissed a lawsuit brought by a coalition of payday lenders.
President Trump has also expressed opposition to regulations addressing climate change, vowing to reverse fuel economy standards for automobiles. His discontent with a new Biden administration rule mandating increased efficiency in water heaters was evident during a press conference at Mar-a-Lago, where he criticized water pressure regulations that could potentially raise the cost of new water heaters. Although the Department of Energy argues that the initiative will lead to cost savings for consumers, critics warn of potential price hikes for water heaters.
In a surprising turn, President Trump supported consumer protection measures during his first term, including the passage of the No Surprises Act by Congress. This legislation, aimed at preventing unexpected medical charges from out-of-network providers, was enacted towards the end of Trump’s term but only came into effect under President Biden’s administration. The lengthy process of passing such bipartisan initiatives underscores the challenges of enacting policies with broad support.
Consumer advocate Murray emphasizes that regulations like the elimination of hidden fees and promotion of transparency in reviews are crucial for fostering fair competition in the marketplace. By holding all businesses to the same standards, these rules aim to create a level playing field that benefits honest enterprises. Murray argues that legitimate businesses have nothing to fear from such regulations, asserting that adherence to fair practices ultimately benefits both consumers and ethical businesses alike.
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