'Annoyance economy’ costs Americans $165 billion a year, report finds
Hidden fees, spam calls and customer service hurdles drain time and money
A growing cost of everyday life
A new report from the Groundwork Collaborative argues that a wide range of modern consumer frustrations — from endless hold times to surprise fees — have quietly become a major economic burden, costing Americans at least $165 billion annually in wasted time and money.
The report defines the phenomenon as the cumulative toll of “time, fees, and irritation” required to navigate everyday transactions — a system where routine tasks like canceling a subscription or resolving a billing error are increasingly difficult, bordering on impossible.
Researchers say the issue has become a defining feature of modern consumer life, with small hassles adding up across millions of interactions.
What’s the most annoying thing in your life? Tell me about it: email jamesrhood@proton.me (This is a highly-secure email and is not monitored by Google or any of the other usual suspects.)
Death by a thousand hassles
The report highlights a wide range of common pain points:
Hours spent on hold with customer service;
Complex insurance paperwork and medical billing disputes;
Junk fees and surprise surcharges;
Spam calls and texts flooding phones daily.
Americans now receive more than 130 million scam or marketing calls each day and nearly 20 billion spam texts each month, according to the analysis.
Health care alone accounts for a major share of the burden. The report estimates $21.6 billion in lost time annually tied to administrative hurdles like scheduling appointments or navigating insurance requirements.
Taken together, these “micro-costs” rival the economic output of entire U.S. states, the authors say.
By design, not accident
One of the report’s central claims is that these frustrations are not random — they are often built into business models.
Companies, researchers argue, deliberately make it easy to sign up for services but difficult to cancel or get refunds. That asymmetry can significantly boost revenue.
In some cases, obstructing cancellations or relying on auto-renewals can increase corporate profits by up to 200%, according to the report.
“The same design choices are flipped and reversed” when consumers try to exit a transaction, Groundwork Executive Director Lindsay Owens said in commentary cited alongside the report.
Affordability meets friction
The report frames the “annoyance economy” as part of a broader affordability crisis — one that doesn’t just show up in prices, but in time and cognitive burden.
Lower-income households are hit hardest, the authors argue, because they have less flexibility to absorb lost time or unexpected fees.
Even small obstacles — like navigating a refund process or disputing a charge — can translate into real financial losses if consumers give up out of frustration.
Policy rollback and regulation debate
The report also wades into policy, arguing that weaker consumer protections have allowed these practices to expand.
It points to rollbacks of rules targeting junk fees, overdraft charges, and airline refunds, as well as reduced enforcement against scams and abusive practices.
At the same time, the issue appears to have broad public resonance. Polling cited in the report shows roughly two-thirds of Americans support stronger action against hidden fees, robocalls, and similar practices.
What this means
For consumers, the findings underscore a shift in how costs are experienced in the modern economy:
Time is increasingly monetized — delays and friction can translate into lost income or missed savings
Complexity can be a revenue strategy — especially in subscriptions, billing, and returns
Small costs add up — turning everyday inconveniences into a multi-billion-dollar drag
The report’s bottom line: the frustration many consumers feel navigating basic services isn’t incidental — it’s systemic, and increasingly profitable.
The bigger picture
The “annoyance economy” concept adds a new dimension to discussions about consumer costs, moving beyond inflation and prices to focus on hidden, non-monetary burdens.
As the report puts it, modern consumers are paying not just with their wallets, but with their time, attention, and patience — a bill that now totals well into the hundreds of billions each year.