In today’s economy, consumers increasingly use the telephone or Internet to buy goods and services, inquire about transactions and bills, and get technical support or other information. Studies estimate that more than 70 percent of customer interaction occurs in call centers. (Garner Group, Sept. 1998; Harvard Business Review, Dec. 1996)

Most telephone and Internet-based customer service transactions are provided by customer service or sales representatives located in centralized call centers. There are more than 50,000 call centers in the U.S. and another 50,000 call centers abroad. In the United States, an estimated 6 million employees work in these centers. (Datamonitor, 2001 and Purdue University’s Center for Customer Driven Quality)

Recent trends in call center service delivery have resulted in a great deal of customer dissatisfaction. Almost half (46 percent) of customers are not satisfied with the service provided by call centers, according to a Purdue University 1999 Call Center Benchmark Report.

Consumers lack the basic information they need to make informed choices, obtain better customer service and protect themselves. Transparency of information is the foundation of accountability and efficiency in the marketplace. There is no transparency in customer service operations.

Consumers have the right to know who they are talking to. Many companies do not operate their own customer sales and service operations, but contract with a third party call center operator to provide the service. The employees are instructed to answer the phone with the brand name they are selling or servicing, and to respond to any customer inquiry with the information that they are employees of the company selling that brand. This is not accurate information.

Customers erroneously place confidence in the transaction based on the brand name and reputation of the company, when in fact this confidence is misplaced. The customer may be giving credit card information to a convicted felon taking airline reservations from a prison-based call center. (Business Week, March 19, 2001)

Consumers also have a right to know where the service center is located. Some customers prefer using local or American companies. Taxpayers may prefer that tax-supported services provide local employment. Consumers have a right to know that the call answered “Hi, I’m Susan from Chicago” is in fact answered by someone located in Bangalore, India. But because of the sensitivity of sending jobs offshore, these foreign-based employees are instructed never to reveal where they are located and in fact to further the pretense by watching American TV shows like “Friends” and “Ally McBeal” to learn the right American phrases. (Pittsburgh Post-Gazette, March 25, 2001 and Chciago Tribune, June 23, 2002.)

According to Business Week (Feb. 3, 2003) more than 300,000 U.S. sales and office support jobs are expected to move offshore by the year 2005. Dell Computer, GE Capital, AT&T, Citigroup, American Express, and Whirlpool are just a few of the companies that send customer service work to India.

Consumers need truthful information to make informed choices. It makes the marketplace more efficient. Manufacturers provide detailed product information. Federal law requires disclosure of U.S. content for automobiles, textiles and wool products. The Federal Trade Commission enforces standards to ensure commercial compliance with “Made in USA” labeling to ensure consumer confidence.

This legislation would apply the same principle of disclosure to telephone- and Internet- mediated customer service transactions.

Consumers need accurate information about the location and identity of the customer service provider to get better service.

• To document a transaction—a promised refund, change in service, or technical support advice.
• To follow-up on a phone call or e-mail--so the customer does not have to begin once again describing the trouble to yet another customer service representative
• To demand better service—the customer must know where decisions are made, whether a request to speak to a supervisor leads to a company representative with authority or simply further up the food chain of the third-party vendor

Consumers have the right to secure financial transactions. That knowing who is handling personal information given over the telephone or Internet. Call centers in other countries may have different privacy and security standards. Consumers have a right to know if call centers are located in a prison, calls are routed to outsourcers that may in turn route calls to “virtual reps” located in their homes without security firewalls.

The marketplace has failed to protect consumers. According to one expert, “Service customers are vulnerable to exploitation.” (K. Sellers and L. Berry, “Service Fairness,” 1998.) They are captive until the billing error, routing problem, technical malfunction, wrong service order, or whatever is fixed. Customers who have accurate information about the location and identity of the service center are better able to use this information to resolve their service problems and to make informed choice.

In 1962, John F. Kennedy issued a “Consumer Bill of Rights.” They are:

• The right to choose.
• The right to safety.
• The right to be informed.
• The right to be heard.

These rights were later expanded to include:

• The right to voice.
• The right to redress or remedy.
• The right to service.

This legislation will extend these consumer rights to the marketplace of the 21^st century—the customer call center. It will provide customers the information they need so they can better exercise consumer choice, voice, get redress or remedy, and protect the security and safety of personal information provided in telephone or Internet transactions.

Before giving any financial, credit or identification, identification information,

Consumers have a right to know:

1. The location - city, state, country – of the customer service employee.
2. The name or registered alias of the customer service employee.
3. The name of the employer.

Consumers have a right to:

1. Have their call rerouted to a call center in the United States of America;
2. Speak to a qualified employee or the entity they are doing business with.
3. Have none of their financial, credit, and identification information sent to any foreign country without consent.

For further information, contact:
Don Rice, Legislative & Political Coordinator
Communications Workers of America
CWA_NJ_Legislative_Office@cwa-union.org