Welcome to the ‘annoyance economy’: Americans are paying over $165 billion a year as companies waste their time to drive revenue

Fortune

by Catherina Gioino

February 19, 2026

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The "annoyance economy" is thriving, with Americans losing billions of dollars annually due to frustrating corporate practices. A new study reveals that companies are intentionally making tasks harder—whether through longer wait times, junk fees, or complicated cancellation policies—to extract more profit from consumers. This growing trend forces people to spend countless hours on hold, pay extra fees for services, and deal with cumbersome administrative tasks across industries like healthcare, hospitality, and transportation. One of the most significant contributors to this economy is the rise of subscription-based services. Companies are increasingly shifting toward models where customers must pay monthly to access full features or benefits. This shift not only makes it harder for consumers to cancel services but also boosts corporate revenue by trapping them in ongoing payment plans. For example, subscriptions for products like car features or streaming services often come with cancellation policies that make it difficult for users to leave, sometimes increasing company profits by over 200%. The study highlights how businesses are leveraging technology to create more frustration points. AI-powered chatbots, designed to handle customer inquiries, often fail to resolve issues efficiently, leaving consumers stuck in endless loops or forced to give up on seeking refunds. This strategy not only saves companies money but also generates additional revenue by discouraging customers from pursuing solutions. The result is a decline in customer satisfaction, with 74% of Americans reporting problems with customer service in the past year—a significant increase compared to decades ago. The "annoyance economy" also extends into healthcare, where administrative hassles and paperwork frustrations cost individuals both time and money. Nearly 80% of Americans report being annoyed by insurance and medical appointment processes, adding to the overall financial burden. By making simple tasks more complicated and time-consuming, companies are effectively charging a "

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Originally published on Fortune on 2/19/2026