FCC Targets Offshore Customer Service and Foreign Robocalls in New Proposal

The FCC has released a Notice of Proposed Rulemaking (NPRM) aimed at improving customer service and protecting U.S. consumers by (1) encouraging onshoring of customer service operations and setting baseline standards for any remaining offshore activity, and (2) increasing the cost of unlawful robocalls originating abroad. Comments will be due 30 days after the NPRM is published in the Federal Register; replies will be due 30 days after the publication. The NPRM proposes new requirements for providers of telecommunications service, CMRS, interconnected VoIP, cable television, and direct broadcast satellite (DBS), with requests for comment on extending certain rules to non-voice channels and additional service categories.

Key Proposed Rules Covered providers and affiliates would be required to:

1. English proficiency: Ensure offshore call center staff are proficient in spoken and written American Standard English, including competencies needed for clear customer communication.
2. Cap on offshore handling: Limit the percentage of customer service calls that are made from or answered offshore, with the FCC seeking comment on appropriate metrics, measurement periods, and timing.
3. Mandatory disclosure: Inform customers at the beginning of each call when it is being handled outside the United States, potentially including standardized disclosure text and country identification.
4. Right to transfer on request: Transfer calls to a U.S.-based call center upon consumer request and ensure transferred-call wait times are no longer than for domestically routed calls.
5. U.S.-only handling of sensitive transactions: Handle consumer transactions that involve sensitive data (e.g., passwords, bank/credit numbers, Social Security numbers) only at U.S.-based contact centers, and consider restricting offshore access to such information.
6. Tracking and reporting: Track and report compliance (e.g., proficiency, routing percentages, transfer rates and wait times, dropped calls), with the Commission seeking input on frequency, format and confidentiality.

Scope Expansion: FCC seeks comment on applying these requirements to chat, texts, and email handled in offshore centers, including for sensitive transactions initiated via non-voice channels.

Additional services The FCC seeks comment on extending some or all rules to Internet-only providers and non-interconnected VoIP, and on conditioning numbering resource access on compliance.

TCPA-covered calls originating abroad: The FCC seeks comment on applying disclosure/proficiency standards to foreign-originated telephone solicitations and prerecorded/artificial voice messages, including transfer to a domestic center.

Anti-Robocall Cost-Increase Measures : To deter foreign-originated unlawful calls, the FCC seeks comment on imposing tariffs (duties on calls entering the U.S.) or bond requirements for entities transmitting international traffic, including structures for triggering bond draws tied to enforcement or consumer reports.

Gateways and enforcement interplay The NPRM references existing traceback and gateway blocking frameworks and explores how bonding/tariffing could complement current mitigation tools and RMD certification consequences.

Industries Potentially Affected

Telecommunications carriers, CMRS providers, interconnected VoIP providers, cable operators, and DBS providers—and affiliates providing Internet access service—would be directly subject to the core proposals.

The FCC is considering extending elements to stand‑alone Internet and non‑interconnected VoIP providers and to all TCPA‑covered foreign-originated solicitations, which would implicate a wider set of entities.

Third‑party BPOs operating offshore contact centers for covered providers would be indirectly impacted through contractual and compliance obligations (e.g., proficiency testing, disclosure scripts, U.S.-only handling of sensitive transactions).

Any offshore center accessing provider customer information could face new technical and process controls, including prohibitions on access to certain data categories.

Why Now?

The FCC cites consumer frustration with offshore interactions, including language and cultural barriers, script‑driven engagements, and limited problem‑resolution authority.

The NPRM references documented misuse of customer information by offshore personnel, weaker foreign legal protections, and potential sharing with foreign governments presenting privacy and national security risks.

Robocalls and fraud losses Foreign call centers have been used to originate illegal robocalls and facilitate scams yielding substantial consumer losses, with some scammers leveraging call center training to increase effectiveness.

Compliance Considerations

The FCC seeks data on the current footprint for all customer contact channels (voice, chat, email, text), onshore/offshore locations, and vendors; map call flows, transfer policies, and sensitive-data touchpoints.  This includes assessing language proficiency programs and the testing/training/quality monitoring for American Standard English proficiency (listening/speaking/reading/writing).

The NPRM seeks comments on the proposed disclosure and transfer requirements, including the preparation of scripts and IVR logic to disclose offshore handling at call start, capture transfer requests, maintain parity of wait times, and provide fallback paths if transfers drop.

The NPRM also seeks comments on sensitive data segregation and how to design or enhance policies and systems that restrict offshore handling and access to sensitive credentials/financial identifiers, including evaluation of encryption/tokenization and least‑privilege access.

The NPRM also seeks comments on the data capture and reporting for routing percentages, proficiency status, transfers, wait times, and drop metrics; and appropriate vendor reporting obligations and audit rights. In addition, what are reasonable phase-in timelines for the proposed rules.

Concern with Foreign-Originated Robocalls

International gateway providers and upstream carriers should assess potential tariff/bond impacts, dispute/appeal mechanics for bond draws, and pass‑through economics to foreign-origin traffic.

The FCC requests input on the applicable services, non-voice channels, how to define “covered calls,” the appropriate cap percentage and measurement period, and phase‑in timelines.  The FCC also seeks comment on specific timing benchmarks and parity metrics for transfers, disclosure text, inclusion of country identification, and direct-dial U.S. options.

The FCC seeks detailed feedback on which data/transactions must be U.S.-only and whether to prohibit offshore availability of certain data categories.

The FCC asks how tariffs or bonds should be structured, identified, triggered, and administered, and how to prevent abuse or ensure due process.

Why This Matters

Operational considerations: If adopted, the new rules will required affected service providers to modify routing logic, staffing mix, training/testing, scripts, IVR, and data access controls.

Contractual considerations: For those affected service providers that outsource contact center support that includes offshore staffing, there will likely have to be amendments to existing agreements related to proficiency standards, data handling, disclosure/transfer processes, metric reporting, audits, and indemnities.

Financial considerations: Potential onshoring investments; possible tariff/bond costs for international traffic; and compliance reporting burdens.

Next Steps

Timing: Comments are due 30 days after Federal Register publication; replies 30 days later. 

Let us know if you have questions or would like our assistance drafting comments in this important FCC proceeding. 

This client alert is for informational purposes only and does not constitute legal advice. If you have questions about how the NPRM may affect your business, please contact your Dickinson Wright attorney.