August 16, 2024

CFPB to Tackle Customer Service, Chatbots

1 min

The CFPB is expected to initiate a rulemaking process that would require companies under its jurisdiction to let customers talk to a human by pressing a single button.

The CFPB also has plans to issue rules or guidance to crack down on chatbots, used by banks and other financial institutions in lieu of customer service, that it claims are ineffective and time-wasting.  It is expected that the CFPB will identify when the use of automated chatbots or automated artificial intelligence voice recordings is unlawful, including in situations in which customers believe they are speaking with a human being.

The announcement from the White House comes as part of a new multiagency initiative launched by the Biden-Harris administration aimed at addressing everyday issues it believes burden American consumers.  The administration efforts are premised on a belief that business practices like "doom loops" often serve to pad the profits of large corporations.  Other actions touted in the announcement include the FTC’s proposed rule to require companies to make it as easy to cancel a subscription or service as it is to sign up for one.

For more on the announcement, click here.