On July 30, 2025, Senators Ruben Gallego (D-AZ) and Jim Justice (R-WV) introduced bipartisan legislation that could fundamentally reshape how American consumers interact with customer service representatives. The Keep Call Centers in America Act of 2025 (the “Act”) includes comprehensive disclosure requirements and consumer rights for calls placed by artificial intelligence (AI) or offshore call center agents.
Overview
While it may have arrived 20 years too late, the Act represents a significant regulatory response to the changing landscape of customer service, where an estimated 3 million Americans work in call centers as their employers increasingly shift operations overseas or replace human agents with AI systems.
The Bureau of Labor Statistics projects a loss of 150,000 U.S. call center jobs by 2033, a trend that in part sparked the introduction of this legislation. Senator Gallego’s press release also quotes a Data for Progress poll revealing that 70% of Americans find automated phone systems frustrating compared to live customer support representatives, and also references potential data security issues when providing sensitive information to offshore call center agents.
Covered Communications and Entities
With the stated goals of protecting American jobs and empowering consumers with transparency and choice in their customer service interactions, the current version of the bill applies to “customer service communications” which the Act broadly defines as “any telecommunication or wire communication between a consumer and a business entity in furtherance of commerce.”
This definition covers not only phone calls, but also emails, texts, and other electronic communications, provided these are between a consumer and a business entity conducted in connection with buying, selling, or servicing goods, merchandise, or services.
The Act applies to businesses employing 50 or more full-time employees or 50 or more employees working at least 1,500 hours per week in aggregate.
Mandatory Disclosure Requirements
Location Disclosure: The Act's most significant consumer protection provision requires business entities to disclose their physical location at the start of each communication.
AI Agent Disclosure: The legislation also squarely addresses the rapid adoption of artificial intelligence in call center operations. The Act defines AI as "a machine-based system that can, for explicit or implicit objectives, infer from the input it receives how to generate outputs such as predictions, recommendations, or decisions that can influence real or virtual environments."
The Act requires businesses to disclose if "a nonhuman, artificial intelligence or machine is being used for customer service at the beginning of such communication," thereby ensuring that consumers know whether they're interacting with a human or an AI from the outset of each call. The disclosure must be explicit, meaning that consumers must be able to easily identify if they are interacting with an automated system, chatbot, or other AI-powered solution.
The Act takes a nuanced approach to AI, neither prohibiting its use nor allowing unchecked deployment. It allows businesses to continue innovating with AI while ensuring consumers maintain control over their interactions. The transparency requirements create market-based solutions where companies with superior AI systems may gain consumer acceptance, while those with poor implementations face market pressure to improve or offer human alternatives.
Consumer Rights
In addition to the disclosure requirements for offshore or AI agents, the Act also establishes a fundamental consumer right: the ability to speak with a human representative located in the U.S. Section 201(c) of the legislation mandates that businesses "immediately transfer the consumer to a human customer service agent who is physically located in the United States" upon request. This provision applies whether the consumer is initially connected to an AI system or an offshore human agent.
The transfer requirement is comprehensive and immediate, meaning that companies cannot delay, discourage, or charge fees for such transfers, and is intended to be a meaningful consumer choice mechanism that allows individuals to opt for human, domestic customer service when they prefer it over automated or offshore alternatives.
Beyond transfer rights, the Act is intended to create greater transparency in customer service interactions. The mandatory disclosures create an informed consent framework where consumers can make educated decisions about whether to continue with AI or offshore agents or request transfer to U.S.-based human representatives.
Enforcement Mechanisms and Penalties
The Act places enforcement responsibility with the Federal Trade Commission (FTC), treating violations as breaches of the Federal Trade Commission Act regarding unfair or deceptive practices. This classification is significant because it subjects violators to the FTC's substantial enforcement powers and penalty structure.
The FTC's enforcement authority includes the ability to seek injunctive relief, monetary penalties, and other remedial actions against non-compliant businesses. Under current FTC penalty frameworks, companies that violate these disclosure requirements could face civil penalties of up to $50,120 per violation.
The legislation also includes a proactive compliance mechanism requiring each covered entity to file an annual certification with the FTC confirming its compliance with the Act’s disclosure and transfer requirements, thereby creating an ongoing accountability framework while providing the FTC with regular compliance data.
Beyond consumer protection, the Act also includes significant economic incentives for maintaining domestic call center operations. Companies that relocate call center work overseas face a five-year prohibition on federal grants and guaranteed loans. Those already receiving federal funding must pay monthly penalties equal to 8.3% of their total award and may have their funding cancelled if they remain on the Department of Labor's public list for one year.
Moreover, the Act requires federal agencies to give preference to U.S.-based employers when awarding contracts and require that all call center work on federal contracts be performed domestically. This creates substantial market incentives for companies to maintain American operations.
What is Next for the Keep Call Centers in America Act?
The bill's bipartisan introduction suggests potential for passage in one form or another, in light of growing consumer frustration with automated systems and bipartisan concern about job displacement. If enacted, the legislation would create the first comprehensive federal framework governing AI disclosure in customer service while strengthening protections for both workers and consumers in an increasingly automated economy.
As businesses adapt to these potential requirements, the Act signals a significant shift toward transparency-based regulation of AI systems and renewed emphasis on consumer choice in an era of increasing automation. The legislation's success could serve as a model for AI governance across other industries, establishing disclosure and consumer control as fundamental principles for artificial intelligence deployment in consumer-facing applications.
In the event the Act is enacted, its disclosure requirements would take effect one year after enactment, during which time the FTC must promulgate implementing regulations that provide clear guidance for covered entities.
