Don't watch me read: how mere presence and mandatory waiting periods affect consumer attention to disclosures

To help people make informed decisions, policy-makers often require entities to provide consumers with informational materials known as disclosures. However, it is unclear whether consumers pay attention to disclosures. In two experiments where we manipulate the delivery of disclosures, we find that the mere presence of an observer negatively affects attention to disclosures, while introducing a mandatory waiting period after receiving a disclosure increases attention. In a third study, we analyze more than 3000 surveys answered by recent mortgage borrowers. Borrowers who report receiving disclosures at mortgage closing meetings (which are often attended by multiple stakeholders) are less likely to have questions about their disclosures than those who receive disclosures beforehand, suggesting differential attention. Our findings demonstrate that both mandatory waiting periods and the presence of observers can affect consumers’ attention to disclosures. We discuss implications of our research for policies designed to promote informed consumer decision-making.