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N.Y.Regulation

New York City proposes rule requiring human option and disclosure for automated customer service

By LexCircuit Desk · · AI-drafted, human-reviewed

New York City's Department of Consumer and Worker Protection on October 20, 2026, proposed a rule targeting chatbot and voice-response customer service "doom loops." Businesses serving New Yorkers would have to disclose automated systems, provide timely and reasonable help, and offer an easy way to reach a human representative. A public hearing is set for November 19, 2026, which is also the comment deadline.

Text (NYC Department of Consumer and Worker Protection) → · Gothamist, Bloomberg Law, New York Law Journal

Key points

  • The rule would cover systems where all or substantially all communication is handled by technology, including rules-based chatbots and AI.GothamistBloomberg Law
  • It rests on the city's Consumer Protection Law and applies to any company doing business in New York City, not only those based there.Gothamist
  • Proposed penalties are $525 for a first violation, $1,050 for a second and $3,500 for each later violation.Gothamist
  • Systems could not repeatedly route consumers to unhelpful menus or answer with irrelevant or incorrect information.GothamistNew York Law Journal
  • Commissioner Samuel Levine said the effective date depends on comment volume and that companies would get a transition period.Gothamist

Sources4 articles across 4 outlets

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RegulationN.Y.NYC DCWP Proposed Rules on Automated Customer Service Systems (2026)Consumer protectionRegulatoryTechnologyFor practitionersFor governanceFor vendors