/>iGreetings TCPAWorld!
Happy Monday! If you’ve ever been stuck shouting “representative or agent” or pressing zero repeatedly into the void of an automated system, this one’s for you.
So without further ado, let’s get into it as part of our latest updates, always bringing you up to speed. On July 30, 2025, Senators Ruben Gallego (D-AZ) and Jim Justice (R-WV) introduced the Keep Call Centers in America Act, a bipartisan bill aimed at regulating call center operations and customer service disclosures. The legislation seeks to address two primary concerns: the offshoring of call center jobs and the growing use of artificial intelligence (“AI”) in customer service interactions. According to the bill’s sponsors, the intent is to improve service quality for consumers while preserving domestic employment opportunities. The bill is motivated in part by Bureau of Labor Statistics data showing that call centers employ approximately 3 million Americans, with projections indicating a loss of 150,000 jobs by 2033. Additionally, a Data for Progress survey found that 70% of Americans find automated phone systems more frustrating than human customer support.
If enacted, the bill would require businesses to disclose, at the outset of any customer service interaction, whether the call is being handled by a human agent located outside the United States or by an AI system. If either is the case, consumers would have the right to request transfer to a human representative physically located in the U.S. Businesses would also be required to certify compliance with these disclosure obligations annually to the Federal Trade Commission. The disclosure requirement is accompanied by enforcement provisions that treat noncompliance as a violation of the Federal Trade Commission Act. With this in mind, the bill applies to businesses with 50 or more full-time employees or those employing 50 or more workers who collectively work at least 1,500 hours per week.
In addition to the disclosure mandates, the bill introduces federal funding consequences for companies that relocate or outsource call center work to overseas locations. Employers would be required to provide at least 120 days’ notice to the Department of Labor (“DOL”) before making such a change. Companies that relocate or contract call center work abroad would be placed on a public DOL list and become ineligible for new federal grants or guaranteed loans for a period of five years. Also, employers with existing federal awards may face monthly penalties equal to 8.3% of the total award already dispersed, and in some cases, cancellation of those awards if they remain on the list for one year. The bill additionally provides limited exceptions in cases where denial of federal funding would threaten national security, result in significant job losses in the domestic economy, or harm the environment. As such, companies can be removed from the list if they relocate call center work back to the U.S. with equal or greater employment levels, or amend contracts to require U.S.-based operations. In other words, if you want access to federal dollars, you’d better think twice before sending support operations abroad.
The legislation would also require that all call center work performed under federal contracts be conducted within the United States. Federal agencies would be directed to give preference in contracting to companies that do not appear on the DOL’s list of offshore call center operators. Finally, the DOL would be tasked with submitting a report to Congress that identifies the scope and location of federal call center work, including any job displacement associated with the use of AI. Whether this creates additional incentive for businesses to invest in onshore human reps or just more risk to navigate remains to be seen.
Supporters of the bill, including the Communications Workers of America (“CWA”), have framed it as a measure to protect U.S. jobs and promote transparency in consumer interactions. CWA Director of Government Affairs Dan Mauer stated that companies have historically offshored customer service jobs to avoid paying good union wages and benefits, and are now using AI to deskill and speed up work, thereby displacing jobs. Critics may raise good questions about compliance burdens, operational flexibility, and the potential impact on businesses that rely on offshore or automated customer service models.
Although the bill does not directly amend the TCPA, it is relevant to organizations already operating under telemarketing and consumer communication regulations. The required disclosures could intersect with broader compliance frameworks governing consent, transparency, and consumer expectations. Companies using AI or offshore call routing in their customer service operations may want to monitor the bill’s progress and evaluate whether any proactive adjustments to internal policies are warranted. The bill’s requirements would take effect one year after enactment, providing companies time to adjust their operations.
To check out the full legislation, click here.
Overall, the Keep Call Centers in America Act remains in the early stages of the legislative process. Whether it advances through committee or gains broader congressional support remains to be seen at this time. However, it reflects a growing focus on regulating the intersection of technology, labor, and consumer interaction. We are witnessing this as an area of increasing relevance to businesses operating in highly regulated communications spaces.
As always,
Keep it legal, keep it smart, and stay ahead of the game.
Talk soon!
