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Speak To A Human, Not Chatbot Under Proposed NYC Rules

Customers could soon have a way around frustrating AI chatbots, with businesses facing fines of up to $3,500 for repeated violations.

| Updated

NEW YORK CITY— Instead of resolving complaints through endless encounters with AI chatbots, customers could have the right to talk human-to-human.

The city's Department of Consumer and Worker Protection proposed new rules on Wednesday to require businesses to disclose when customers interact with automated systems, provide meaningful customer assistance and offer ways to reach a human representative.

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The proposal targets customer service systems that repeatedly send customers through irrelevant menus or "fail to adequately address" problems.

"Sometimes bad customer service is merely exasperating," DCWP Commissioner Sam Levine said. "Other times it's all the difference between refilling a critical prescription, rehabilitating a student loan, or recovering a large refund."

How Could Customers Reach A Human?

The proposal would presume businesses are engaging in deceptive practices if they use automated customer service without offering customers a way to reach a human representative.

Businesses could satisfy the requirement by providing a clearly identified, single-step transfer option, such as telling customers to press zero or type or say "agent."

If customers enter a waiting queue, the business would have to provide an estimated wait time.

If a representative is unavailable or the queue is unreasonably long, the business would have to provide an alternative way to obtain human assistance.

Options could include a telephone number, live chat, email address or contact form.

Businesses could also let customers request a callback or written response, provided they explain when customers can expect a reply.

What Could Businesses Face For Violations?

The proposed penalty schedule sets fines at $525 for a first violation, $1,050 for a second violation and $3,500 for a third or subsequent violation.

The proposal also would require businesses to retain records for at least three years.

Those records would include logs of customer interactions, information about transfers to human representatives, disclosures given to customers and data on how often automated systems resolve inquiries without human intervention.

Businesses would have to maintain the records in a machine-readable format and provide them to the department upon request.

The department said its enforcement authority could also allow it to seek restitution for consumers harmed by violations.

When Can New Yorkers Comment On The Proposal?

The department will hold a public hearing at 11 a.m. Nov. 19.

The hearing will take place by phone and video conference.

Residents can submit written comments through the New York City rules website or email Rulecomments@dcwp.nyc.gov.

Speakers can address the proposal for up to three minutes.

The deadline for all comments is Nov. 19.

People who need a disability accommodation or sign language interpreter should email the department by Nov. 12.

The proposal remains subject to public comment and review.

The department will consider submissions before deciding whether to finalize and adopt the rules.

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