China Consumers Association Warns Against Risks in AI Consumer Services

The China Consumers Association has issued a public advisory detailing risks associated with generative AI tools and merchant-deployed customer service bots. Responding to rising consumer complaints, the association categorized risks into two primary areas: inaccuracies in general-purpose AI outputs and misleading responses from automated enterprise customer service agents. The association reiterated that under existing regulations, businesses cannot cite algorithmic automation to evade contractual obligations or statutory consumer protection responsibilities.

As businesses deploy generative AI to cut operating expenses and handle client inquiries, technical hallucinations and incorrect policy explanations pose growing risks to consumers. By establishing that automated answers carry commercial liability and cannot serve as a legal shield, consumer authorities are defining operational boundaries for commercial AI deployment in retail and service sectors.

The China Consumers Association has issued an advisory highlighting risks in consumer-facing artificial intelligence services, warning against unverified automated outputs and reminding merchants that technology cannot be used to dodge legal responsibilities, according to a report by People's Daily. Regulators and consumer advocates have noted that while generative AI improves service efficiency across commercial sectors, inherent technical uncertainties frequently cause factual inaccuracies, omitted terms, and unfulfilled commitments. The association divided these issues into two main categories: general-purpose generative AI tools and enterprise-deployed customer service bots. According to the association, general-purpose generative tools compile public data to produce reference text that does not constitute official merchant policy, binding contracts, or authoritative legal advice. In practice, however, these systems can generate erroneous factual statements, overconfident projections, or flawed legal guidance. Consumers who rely blindly on such answers when demanding refunds or filing disputes risk unnecessary financial loss and procedural missteps. The second category covers customer service bots deployed directly by businesses. The consumer body reported that automated customer service systems frequently provide inaccurate fee descriptions, misinterpret promotional rules, or fail to disclose restrictive conditions. In certain disputes, some merchants have attempted to evade their contractual obligations and legal liabilities by claiming that erroneous statements were merely automatically generated by an algorithm. The China Consumers Association emphasized that current Chinese laws already draw clear boundaries for commercial AI services. The Interim Measures for the Management of Generative Artificial Intelligence Services mandate that providers improve content accuracy, disclose service scope, and provide adequate risk warnings. Meanwhile, the Consumer Rights Protection Law obligates operators to deliver truthful, unambiguous product and service information without disclaiming statutory duties. To address these risks, the association advised platform operators to strengthen auditing and verification mechanisms, particularly in sensitive domains such as finance and legal disputes. For commercial bots, merchants must ensure automated replies strictly align with actual service terms and contract stipulations, while maintaining unimpeded access to human customer service personnel.