New York City wants to make it easier to escape an unhelpful customer service bot. On October 20, the city’s Department of Consumer and Worker Protection (DCWP) proposed a rule that would require businesses to offer an easy way to reach a human when automated help falls short, and to tell customers when they are dealing with an AI, according to the city’s announcement.
What is a “doom loop”?
It is the experience of being stuck with a chatbot or phone menu that keeps giving irrelevant answers, sends you round in circles, and never lets you speak to a person. The city cites a Gartner report finding that chatbots resolved customer issues anywhere from 17% of the time (billing disputes) to 58% of the time (returns or cancellations).
What the proposed rule would require
The rule covers “automated customer service systems,” which includes AI chatbots as well as automated phone systems. Under the proposal, businesses would have to:
- provide timely and reasonable customer service
- offer an easy route to a human representative when automation is not solving the problem
- disclose when a customer is dealing with an automated system such as AI
- give meaningful help if they advertise customer service
It would also spell out that it is a deceptive practice to suggest help is available but then repeatedly fail to deal with a customer’s question, or to reply only with irrelevant or wrong information. And businesses could not dodge responsibility when their AI does something unlawful. In other words, “the bot said it” would not be an excuse.
Companies that break the rule could have to pay back harmed customers, plus civil fines starting at $525.
What officials said
“This rule makes clear: customer service cost-cutting can’t come at New Yorkers’ expense,” said Mayor Zohran Mamdani. DCWP Commissioner Samuel A.A. Levine said: “We are not waiting for Washington to come to the rescue of working people.”
The rule builds on the city’s earlier “click-to-cancel” rules for subscriptions, which took effect earlier this year. In September, the department also said that its consumer protection law already covers what chatbots and other AI agents tell customers.
What happens next
This is a proposal, not a final rule. It is open for public comment for 30 days, including a public hearing, and anyone can submit comments through the city’s rules website. DCWP will review the feedback before deciding on the final version.
What it means for you
If you live in New York City and the rule is adopted, you should find it easier to get past a chatbot to a real person, and you would have grounds to complain if a company’s bot gave you wrong information that cost you money. If you have a doom-loop story, the comment period is your chance to share it.
Wherever you live, a few habits help today. Ask the bot directly for “an agent” or “a human.” Keep screenshots or transcripts when a chatbot promises a refund or gives you important information, in case you need to dispute it later. And remember that, in a growing number of places, companies are being held responsible for what their AI tells you.
Sources
- Mamdani Administration Proposes Ban on AI Customer Service Doom Loops — NYC Department of Consumer and Worker Protection