Mathew PaquetChecklist · 4 min read
The AI Phone Line Checklist
If an AI answers or listens on your business's calls, check the three documents a court would read: what your vendor's contract lets it do, what your privacy policy tells callers, and the dated proof of what each caller was told.
A class action in federal court in California (In re Google Cloud Contact Center AI Privacy Litigation) says Google's customer-service AI answered calls to Home Depot, Uber, Discover and Verizon, kept a running transcript and suggested replies to the agent, without announcing itself to callers. These are allegations. Judge Rita Lin heard Google's motion to dismiss on October 13, 2026, and on October 22 Google won this round: the two Home Depot callers with accounts were held to Home Depot's privacy policy, which says call recordings may go to service providers, and she said that includes Google. The third didn't show that Google meant to listen without consent. The Uber, Discover and Verizon callers were sent to arbitration under those companies' own agreements. The Home Depot callers can file an amended complaint by November 12, 2026, so the case isn't over.
Under California's wiretap law, the business you called is one of the people talking, so it can't wiretap its own call. A separate company listening in needs everyone's consent. In February 2025 the judge kept the case alive with the capability test: the question isn't whether the AI company did something with your call, but whether its terms let it.
Google's answer is that the businesses told callers: Home Depot's privacy policy says it collects audio recordings from customer care calls, including through service providers. The callers said not one of those policies mentions Google; the judge said "service providers" includes Google. And Google says its contract has always required each business to get consent from its own callers.
The telling is the business's job.This isn't legal advice, and the case isn't over. These are the three checks it points at.
Open your AI phone vendor's contract and its data or service terms. Look for what it may do with your calls beyond handling them for you.
"Service providers" is the exact phrase this round turned on: on October 22 the judge said it includes Google. Read your policy and ask whether it describes the third party on the call and what it does there.
What it does on the call: [LISTENS / TRANSCRIBES / SUGGESTS REPLIES TO OUR AGENT]
What it may do with the call afterwards: [WHAT YOUR CONTRACT ALLOWS, FROM CHECK 1]
If your policy only says "service providers may record calls", that's the line to look at first.
The judge's third question asked what happens if a business's audit trail of who was told turns out to be wrong. That audit trail is held by the business, not the AI company. If a caller from two years ago asked what you told them, could you show which greeting and which privacy policy were live that day?
Changed: [GREETING / PRIVACY POLICY / VENDOR SETTING]
Old text saved at: [FILE OR LINK]
New text: [THE EXACT WORDS NOW LIVE]
Who changed it: [NAME]
If an AI answers your phones, or you're about to buy one, send your vendor these three questions.
(improve, train, develop, analyze)? Is there a setting that turns that off?
2. On a call, what exactly does your AI do: listen, transcribe, suggest replies?
We need to describe that to our callers.
3. What does our contract say about getting consent from our callers,
and whose job is it?
Start here. If your greeting had to name every company listening to the call, how many names would it say?
Sources
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Save a dated copy of your phone greeting and your privacy policy exactly as they are today.
Saving works best in your phone's browser. A copy is also in your inbox.