WASHINGTON — The Federal Communications Commission has advanced a wide-ranging proposed rulemaking that would impose new restrictions on the use of offshore call centers by telecommunications providers, including potential English-language proficiency requirements and limits on overseas operations.
The agency has voted to open the proposal for public comment, marking the first formal step in a rulemaking process that could reshape how phone, cable and internet companies handle customer service, according to reporting by The Wall Street Journal.
Under the proposal, the FCC is considering requiring that customer service representatives located outside the United States be proficient in “American Standard English,” part of an effort regulators say is aimed at improving service quality and reducing communication barriers, according to Reuters.
Call ‘Caps’ Contemplated
The draft rules also contemplate placing caps on the percentage of customer service calls that can be handled by foreign call centers, with the agency seeking comment on thresholds that could begin around 30%, according to legal analysis published by JD Supra.
In addition, telecommunications providers could be required to disclose when a call is being handled overseas and inform customers of their right to request a U.S.-based representative, JD Supra said, adding that the proposal would further explore restricting certain sensitive transactions — such as those involving passwords, financial data or other personal information — to U.S.-based call centers only, citing concerns about data security and fraud.
Response to Consumer ‘Complaints’
FCC Chairman Brendan Carr said the initiative is intended to address longstanding consumer complaints about offshore customer service, including language barriers, delays and potential security risks, according to Reuters.
Regulators are also examining whether foreign call centers contribute to illegal robocalls and scams, and are seeking input on additional deterrents such as tariffs or bonding requirements tied to overseas operations.
The proposed rules would apply broadly to FCC-regulated service providers, including telecommunications carriers, mobile providers, interconnected Voice over Internet Protocol services and cable operators, and could potentially be expanded to cover additional internet-based communications services, JD Supra reported.
Concerns Over Jobs
Labor groups and analysts have raised concerns that stricter limits on offshore call centers could accelerate automation, as companies look to offset higher costs by expanding the use of AI-driven customer service, the Journal reported.
The FCC’s vote initiates a public comment period, after which the agency will consider revisions before deciding whether to adopt final rules later this year, according to The Wall Street Journal.
