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 proposed rules that would require businesses using AI chatbots or automated phone lines to disclose the automation up front and provide customers a one-step way to reach a human, such as "Press 0". The rules target customer service "doom loops", stating that repeatedly routing people to menus that don't answer their questions or replying with "unresponsive, irrelevant, or erroneous information" would count as a deceptive trade practice. Businesses would be presumed in violation unless they offer a single-step human route with an estimated wait time, and if no one is available, an alternative such as a phone number, callback, or email with a promised response time. Technology would be no defence against liability under city consumer rules, referencing Air Canada's attempt to disown its chatbot's statements. Fines would be $525 for a first violation, $1,050 for a second, and $3,500 for a third within two years. Mayor Zohran Mamdani and DCWP Commissioner Samuel Levine voiced support, saying the city is not waiting for federal action. If adopted, New York would be the first US city able to enforce this protection. Public comments are open until November 19, 2026.

(Source：MadRobot)