STATE REGULATIONS
BY MELODY MOREHOUSE, GRYPHON AI
ILLUSTRATION PROVIDED BY ADOBE STOCK
AUTOMATION, REFUNDS, AND RIGHTS TO A HUMAN
THE WIDE IMPLICATIONS OF CALIFORNIA’ S NEW LAWS.
When a customer’ s dinner never arrives, most people don’ t want app credits, maze-like navigation menus, or a chatbot loop; they want their money back and a human who can fix the problem.
California’ s new Assembly Bill 578 makes that expectation a legal requirement for food delivery platforms: full cash refunds back to the original payment methods and access to human customer service representatives when automation can’ t resolve the issues.
It’ s a narrow law on paper, but it’ s also one of the clearest U. S. signals yet that regulators are ready to step into automation-first customer journeys.
WHAT AB 578 REALLY DOES
California’ s AB 578, which took effect on January 1, 2026, requires food delivery platforms that operate there to refund customers for orders that are not delivered or are delivered incorrectly. They must also return that money- including taxes, fees, and tips- to the original form of payment rather than issuing app-only credits.
Platforms can deny a refund only if they can show the customer is respon- sible or if fraud evidence exists. The law also protects couriers by prohibiting platforms from clawing back refunded gratuities from drivers.
Contact leaders will recognize the transparency and service obligations here. Delivery apps must provide itemized breakdowns of each transaction and, crucially, must offer access to a human customer service representative when a customer’ s problem cannot be resolved through automated systems.
FOR DIGITAL-FIRST PLATFORMS, AB 578 IS A WARNING SHOT AGAINST“ IVR LOCK-IN” AND CHATBOT MAY TRAPS 2026 41.