New York proposes curbing "endless loops" in automated customer service
The city of New York proposed new rules for automated customer service systems, from AI chatbots to voice response calls. The rule, pushed by the Department of Consumer and Worker Protection (DCWP), would require companies to disclose when a user is interacting with a technology and to offer a one-step path to reach a person. If enacted, the city would become the first U.S. municipality to apply this type of consumer protection, according to the agency. Fines could reach USD 3,500.
In 40 seconds
- Companies would have to disclose when an automated system responds and enable a one-step transfer to a human representative.
- The proposal treats advertising customer service and then failing to respond reasonably, or giving wrong information, as a deceptive practice.
- Civil penalties would range from USD 525 for a first violation to USD 3,500 for a third or later one.
IASummary generated by artificial intelligence from a story by Infobae. It may contain errors: the original source prevails.



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