New York City proposes rules to end AI customer service doom loops

New York City’s Department of Consumer and Worker Protection proposed rules for businesses that use AI chatbots or automated phone systems for customer…

October 20, 2026 · Government

New York City’s Department of Consumer and Worker Protection proposed rules for businesses that use AI chatbots or automated phone systems for customer service. They would have to tell customers when they are dealing with an automated system, offer an easy way to reach a human, and could not dodge responsibility for unlawful things their AI tools do. Endless loops of unhelpful or wrong answers would count as a deceptive practice. Fines would start at $525 per violation. The proposal is open for 30 days of public comment before it can become final.

Why it matters to you: Being stuck with a chatbot that can’t help is one of the most common frustrations with AI. This is one of the first local rules to say a human must be within reach, and other cities may follow.

Try this: Stuck in a chatbot loop? Get AI to help you escape it.

I’m stuck with [company]’s customer service chatbot about [problem]. Write me three short, polite messages that ask clearly for a human agent, and list other ways to reach a person at a company like this.

Source: NYC Department of Consumer and Worker Protection

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