The FCC Tackles Call Center Offshoring With Proposed Rules

The FCC has released a proposal aimed at tightening rules on offshore call centers used by telecom and other covered communications providers, with a focus on disclosure, consumer choice, and limits on overseas handling of calls and sensitive data.

Core elements of the proposal

• Require disclosure of agent location
  Covered providers would need to tell consumers when their call is being handled in an overseas contact center, including the physical location of the customer service agent.

• Give consumers the option of a U.S.-based agent
  Companies would have to offer the ability to transfer to a U.S.-based representative upon request if one is available, effectively creating a mandated “U.S. option” for customer service.

• Cap volume of calls handled offshore
  The FCC is floating limits on the share or volume of customer calls that can be routed to foreign call centers, with details to be fleshed out in comments (e.g., thresholds, measurement periods).

• Restrictions around sensitive data
  Transactions involving sensitive customer data (such as certain account changes or authentication steps) could be restricted to U.S.-based contact centers or subject to heightened safeguards if handled offshore.

• English proficiency expectations
  One option in the proposal is to require offshore call takers serving U.S. consumers to be proficient in American Standard English, framed as a customer experience and comprehension measure.

• Advance notice of offshoring moves
  Providers could be required to give regulators advance notice (reports mention a 120‑day notification period) before shifting significant call center operations offshore.

• Link to robocall and security concerns
  The proposal is explicitly tied to concerns about illegal robocalls originating overseas and potential security risks in handling U.S. customer data abroad, which the FCC argues justify tighter oversight and possible limits.

Procedural status and scope

• The FCC is at the “notice of proposed rulemaking” stage, seeking public comment on both its legal authority and how broadly any rules should apply to foreign call centers used by U.S. communications providers.

• At this stage, the rules are not yet in effect; they could change materially based on industry, consumer, and political feedback before any final order is adopted.

Potential impact for industry and consumers

• For telecoms and other covered providers: increased compliance obligations (disclosure scripts, routing logic to honor U.S.-agent requests, monitoring and reporting of offshore call volumes, vendor management and data controls).

• For offshore BPOs: potential reduction in volume from U.S. telecom clients, need to demonstrate English proficiency, security controls, and ability to support new reporting requirements.

• For consumers: more transparency about call routing and a formal right to request a U.S.-based agent, with possible improvements in data security but also potential service changes or cost pass‑throughs depending on how strict the final rules are.