New York City’s mayoral administration has proposed a rule intended to protect consumers from getting stuck in a “doom loop” of AI-driven customer service chatbots — long sequences of machine-generated responses that prevent users from reaching a human representative. The rule was put forward by Mayor Zohran Mamdani’s administration.
What the rule would require
- Businesses would have to disclose when a customer is interacting with an AI system.
- If a chatbot cannot resolve a customer’s request, companies must provide a quick ‘‘off-ramp’’ to a human customer service agent.
- Violations would be subject to fines, with penalties starting at $525.
In a statement, Mamdani said: “When corporations force you to fight your way through an endless doom loop of AI-generated responses to speak to another human being, they’re stealing your time, money, and patience. This rule makes clear: Customer service cost-cutting can’t come at New Yorkers’ expense.”
Who is leading the effort
The initiative is driven by officials with prior federal consumer and labor experience. Samuel Levine, commissioner of the city’s Department of Consumer and Worker Protection, previously led the Federal Trade Commission’s Bureau of Consumer Protection while Lina Khan was chair of the FTC. Deputy Mayor Julie Su served as acting labor secretary during the Biden administration.
Lina Khan is also part of Mamdani’s administration, serving as board chair of the city’s Economic Development Board.
Why it matters
The proposed rule targets business practices that rely on automation to reduce customer service costs in ways that can produce ineffective, time-consuming interactions for consumers. By mandating transparency about AI use and requiring an accessible path to reach a human agent, New York seeks to make consumer protections explicit in the face of expanding automated customer service. Further details on enforcement and timing will depend on the city administration’s next steps; the rule was proposed today.
