FCC's AI-Generated Call Disclosure Rules:

FCC's AI-Generated Call Disclosure Rules: Impact and Best Practices for REALTORS®

Overview

The FCC has proposed new rules requiring the disclosure of AI usage in telemarketing calls. This initiative aims to protect consumers from AI-driven scams and ensure transparency in communications.

Required Opt-In Procedures and Disclosures

1. Mandatory Disclosure:

   • Callers must inform consumers at the beginning of the call if AI is being used.

   • Disclosure must also occur during the consent process.

2. Cold Calls:

   • The same disclosure requirements apply to unsolicited or cold calls.

   • Consumers must explicitly opt-in to receive AI-generated calls.

Risks of Non-Compliance

1. Legal Penalties:

   • Realtors and firms failing to comply may face significant fines and legal actions.

   • Non-compliance can damage a company's reputation and lead to loss of consumer trust.

2. Operational Disruptions:

   • Failure to implement required disclosures can result in halted operations and necessary, immediate adjustments to communication practices.

Impact on Real Estate Professionals

1. Operational Changes:

   • Realtors will need to update their call scripts and systems to incorporate mandatory AI disclosures.

   • Staff training on managing AI interactions and ensuring compliance is crucial.

2. Increased Transparency:

   • Clear communication about AI usage can build trust with clients but may also require managing client expectations and concerns.

3. Best Practices for Implementation:

   • Seamless Integration: Disclosures should be concise and smoothly integrated into call scripts.

   • Regular Audits: Conduct audits of AI interactions to ensure compliance and maintain service quality.

   • Client Education: Inform clients about the benefits and safeguards of AI in real estate transactions.

   • Human Oversight: Ensure human agents are available to handle complex situations and oversee AI interactions.

Conclusion

The FCC's proposed regulations on AI-generated call disclosures represent a significant step towards protecting consumers and promoting transparency. For real estate professionals, understanding and adhering to these regulations is essential for maintaining compliance, building client trust, and leveraging AI technology responsibly.

For more information on the FCC's proposal, visit the FCC website​(DOC-403990A1)​.