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Call Centers · Consumer Protection · FCC Regulation · Telecom Industry
On March 5, the Federal Communications Commission (FCC) released a Notice of Proposed Rulemaking (NPRM) for a March 26 vote, targeting offshore call centers used by telecommunications, commercial mobile radio services (CMRS), interconnected VoIP, cable television, and direct broadcast satellite (DBS) providers to enhance customer service and combat foreign robocalls.
The FCC states that offshoring contributes to customer service challenges, domestic job losses, privacy risks, and scams. Proposed rules require offshore staff to be proficient in American Standard English, limit offshore call percentages (e.g., 30%), mandate disclosure of offshore handling, and allow consumers to request transfer to a U.S.-based center.
Additionally, sensitive transactions, including those involving passwords or financial information, must be handled within the United States. The FCC also seeks comment on increasing the cost of unlawful international calls through tariffs or bond requirements and on its legal authority under statutes like the Telephone Consumer Protection Act (TCPA).
Brownstein Hyatt Farber Schreck notes the proposal could impose significant operational and compliance obligations on covered providers and potentially other industries like financial services.
