The Consumer Financial Protection Bureau is planning to issue rules or guidance “to crack down on ineffective and time-wasting chatbots” used by banks and other financial institutions, the Biden administration announced this week.
According to the White House, chatbots can be useful for answering basic questions, but when asked about more complex problems, “they frequently provide inaccurate information and give the run-around to customers seeking a real person.” The CFPB is planning to 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. No other details were provided about the proposal.
The administration also announced new rulemaking to crack down on customer service “doom loops” in which customers seeking assistance “are instead sent through a maze of menu options and automated recordings.” The CFPB will propose a rule that would require companies under its jurisdiction to let customers talk to a human by pressing a single button, the White House said. The Federal Communications Commission, Department of Health and Human Services and Labor Department will take similar measures for businesses under their jurisdictions.
The announcements were part of a package of policy proposals by the White House to mitigate business practices it said “waste Americans’ time and money.” Other proposals include making it easier for consumers to cancel subscriptions and memberships, allowing consumers to submit health claims online and preventing marketers from using fake reviews to build hype for products.
