A consumer’s frustration of waiting endlessly to speak with a customer service representative is expected to decrease significantly.
California Governor Gavin Newsom signed a bill (AB 1609) on the 28th that mandates companies connect customers to a live agent within 15 minutes if they request it, rather than being stuck with AI or chatbots.
Introduced in January of this year by Assemblymember Rick Chavez Zbur (D-LA), AB 1609 applies to large companies with annual revenues of $500 million or more.
Under the law, subject companies must establish systematic operating procedures to ensure live agent connection within 15 minutes. If they are unable to respond in time, they must provide a time when a consultation will be possible within the next business day.
Additionally, companies must notify customers that the service is AI if there is a possibility the customer could mistake the chatbot for an actual person. Violations can result in fines of up to $5,000 for the first offense and up to $10,000 for each subsequent repeated violation.
Meanwhile, Governor Newsom also signed a bill (SB 96) on this day to regulate music and podcast streaming services, preventing advertisement volume from exceeding that of the actual content. In addition, he signed bills allowing 16- to 17-year-olds to obtain library cards without parental accompaniment and permitting parent-teacher conferences via online or phone.
