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Americans Pay $165B in 'Annoyance Economy' as Companies Waste Time

Yahoo Finance •
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Americans are paying over $165 billion annually in what researchers call the "annoyance economy" as companies deliberately waste consumer time to boost profits, according to a new study by the Groundwork Collaborative. The report reveals that junk fees for concerts, hotels, and food deliveries alone cost consumers over $90 billion per year, while healthcare administrative hassles waste $21.6 billion in time.

Customer service wait times have spiked 60% over the last 20 years as companies pare back support staff and make processes like refunds more difficult. The study found that 74% of customers reported problems with service in the past year, double the rate from 1976. Companies are increasingly using AI-powered chatbots and subscription models to create revenue streams, with subscription cancellation difficulties potentially boosting corporate revenue by more than 200%.

Consumer frustration extends beyond fees and wait times. Americans receive 130 million scam calls daily and over 20 billion spam texts monthly, with 85% reporting frustration with spam. The report suggests that government regulation could address these practices, noting that 68% of voters want Congress to prioritize tackling these business tactics. As companies continue to monetize consumer inconvenience, the study concludes that without regulatory intervention, the "annoyance economy" will likely expand as businesses find new ways to extract value from customer frustration.