The New York City Department of Consumer and Worker Protection has proposed rules that would require merchants using consumer-facing automated customer service systems to clearly and conspicuously notify consumers that they are interacting with an automated system, not a human. The disclosure would have to be provided at the beginning of the interaction and in the language being used for the interaction.
This is similar to bot-disclosure requirements adopted in California, Maine, New Jersey and Utah.
But the NYC proposal goes further.
Reasonable and Timely Customer Service
Under the proposed rules, it would be a deceptive and unconscionable trade practice for a merchant to represent that customer service is available but then fail to provide it in a reasonable and timely manner.
A merchant would fail this standard if, during an automated customer service interaction, it repeatedly and unreasonably:
An Option to Reach a Human
The proposal would create a rebuttable presumption that a merchant engaged in a deceptive and unconscionable trade practice if it uses an automated customer service system without giving the consumer an option to interact with a human representative.
A merchant could address that presumption by:
- Offering a clearly identified, single-step transfer mechanism, such as “Say or type ‘agent’” or “Press 0,” and providing the estimated wait time if the consumer is placed in a queue; or
The alternative could include identifying the hours when a human representative is available, providing a telephone number or live-chat option, or allowing the consumer to request a response by email, text message or callback. For asynchronous options, the merchant would also have to provide the timeframe within which it will respond.
Additional Recordkeeping and Accountability Requirements
The proposal would require merchants to retain compliance records for at least three years. Those records would include logs showing the duration of covered interactions, whether a human-transfer option was offered and used, and whether the consumer was transferred, placed in a queue or directed to an alternative means of reaching a human. Merchants would also have to maintain specified aggregate annual data and records of the disclosures provided to consumers.
The proposal also makes clear that a business cannot avoid responsibility by claiming that a particular technology caused or assisted in the violation.
California Is Moving in the Same Direction
Similar human-support obligations apply to large private businesses under California AB 1609, recently signed by Governor Gavin Newsom. The California law requires covered businesses to disclose when a customer service agent is an AI bot and provide a way for customers to request human assistance. As explained in our analysis on this law, the California law only applies to the California law applies only to private businesses with more than $500 million in annual gross revenue.
Penalties
The NYC proposal includes an escalating administrative penalty schedule. The listed penalties are $525 for a first violation, $1,050 for a second violation, and $3,500 for a third or subsequent violation within two years. A knowing violation may also be subject to a $3,500 penalty. Each separately charged provision may constitute a separate violation.
Comments on the proposal are due November 19, 2026, the same date as the public hearing.