Under the bill, companies would incur a $0.25 excise tax for any domestic customer service call that is transferred overseas.
Companies must also disclose to the caller that their call is being transferred overseas and name which country is receiving the call.
In addition, companies would have to certify to the Federal Trade Commission that they are complying with this requirement.
Schumer said his bill will guarantee Americans know what country stores their personal information, which he said is important because foreign countries do not have to adhere to U.S. consumer protection laws.
Travis May, CEO of TollFreeForwarding.com, which links companies to their customers worldwide, criticized Schumer's bill, saying it would prompt U.S. companies to move operations offshore.
"This will be be a tax on American businesses who will pass the increased cost on to their U.S. customers," he said in prepared remarks. "Businesses already considering moving their operations overseas will be even more incentivized to do so if this proposal were to become law. This proposal is protectionism at its finest, and very shortsighted."