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That Dropped Call With Customer Service? It Was on Purpose
Companies deliberately design customer service friction to discourage refunds and claims, according to research into a practice academics call "sludge." The term, coined by legal scholar Cass R. Sunstein and economist Richard H. Thaler in their updated version of "Nudge," describes tortuous administ...
Companies deliberately design customer service friction to discourage refunds and claims, according to research into a practice academics call "sludge." The term, coined by legal scholar Cass R. Sunstein and economist Richard H. Thaler in their updated version of "Nudge," describes tortuous administrative demands, endless wait times, and excessive procedural fuss that impede customers.ProPublica reported in 2023 that Cigna saved millions of dollars by rejecting claims without having doctors read them. The Consumer Financial Protection Bureau ordered Toyota's motor-financing arm to pay $60 million for alleged misdeeds including deliberately setting up dead-end hotlines for canceling products and services.
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