New York City wants to fine companies that trap you in AI chatbot ‘doom loops’

New York City’s Department of Consumer and Worker Protection has proposed rules requiring companies that use AI chatbots, automated phone menus, or other largely automated customer-service systems to disclose that customers are interacting with technology and provide a one-step path to a human representative. Companies that advertise customer service would have to provide it in a reasonable and timely manner rather than repeatedly directing customers through irrelevant or unresponsive automated menus. The proposal presumes a violation unless a customer can reach a human in one step, such as by pressing 0 or typing “agent,” without additional questions and with an estimated wait time. If no human is available, companies would need to offer another contact method, such as a callback, email address with a response commitment, or live-chat hours. Businesses also could not call an unattended phone number or email address “customer service,” and would have to retain records for three years showing whether customers were offered and received human support. Violations would carry fines of $525 for a first offense, $1,050 for a second, and $3,500 for a third violation within two years. The rules would apply to businesses serving New York City customers. Public comments are open until November 19, 2026, with a virtual public hearing scheduled for 11 a.m. New York time that day.