[43 Pa.B. 3473]
[Saturday, June 29, 2013]
[Continued from previous Web Page] § 111.9. Door-to-Door Sales.
Although the Commission adopted a compromise solution in the proposed regulations regarding the time frame for door-to-door sales, several of the commenters request that the Commission revisit the positions they presented during the debate over the Interim Guidelines. Suppliers, in general, believe the proposed timeframes are unnecessarily restrictive. Those advocating an extension of the time frame include RESA (9 a.m. to 9 p.m. from October 1 through March 31), PEMC (9 a.m. to 9 p.m. for the entire year), DES (have the Commission adopt those approved by the North American Energy Standards Board which allow for 9 a.m. to 7 p.m. solicitations with seasonal variations).
However, OCA/AARP suggests that the timeframe be more restrictive (10 a.m. to 7 p.m. or in the alternative 9 a.m. to 7 p.m. year round) because they believe that any contacts after 7 p.m. are too intrusive as families try to spend time together, are engaged in homework, or are preparing for bath or bed time routines. OCA/AARP notes that Connecticut recently adopted the hours of 10 a.m. to 6:00 p.m. for door-to-door marketing.10
PEMC suggests that the requirement in § 111.9(2) that suppliers notify local officials of door-to-door marketing operations is not necessary and duplicative because when a supplier seeks and is granted a license from the municipality, the supplier is, in effect, informing the municipality of its activities. Additionally, PEMC points out that it may be difficult to identify the ''local municipal officials'' that would be required by this section. (PEMC, p. 10.)
PEMC and RESA propose that the language of § 111.9(e) be changed to provide flexibility when dealing with individuals who do not use English as their primary language. To alleviate this problem, PEMC and RESA suggest that language be inserted into the subsection that would permit a member of the customer's household to assist the agent. RESA would require a customer's affirmative consent and would permit a friend or neighbor to act as translator on behalf of the customer.
In addition, PEMC and RESA are in agreement that § 111.9(f)(3) should be changed to permit an on-site agent to provide the customer with a copy of the disclosure statement as opposed to the mailing requirement contained in the proposed subsection. PEMC believes that the mailing requirement makes sense for telephone sales but not door-to-door sales and RESA believes that to permit an agent to deliver the disclosure statement in this fashion with customer consent would streamline the enrollment process. NEM suggests that if the customer is provided with a copy of the disclosure statement at the time the contract is signed, the supplier should not be required to send another disclosure statement to the customer. NEM thinks this should be made clear by adding ''if the disclosure statement has not been previously provided'' to the end of § 111.9(f)(3). (NEM, p. 7.)
RESA suggests that the word ''cancel'' be replaced by the word ''rescind'' in subsection (f)(4) to make the subsection consistent with the three business day right of ''rescission'' and to avoid confusing the term with specific contractual rights that the customer may or may not have to ''cancel'' the contract at any time.
IRRC notes that under 66 Pa.C.S.A. § 2206(c), relating to natural gas competition, the PUC has the statutory directive to:
. . . by order or regulation, establish requirements that each natural gas distribution company and natural gas supplier provide adequate, accurate customer information to enable retail gas customers to make informed choices regarding the purchase of all natural gas services offered by that provider. Information shall be provided to retail gas customers in an understandable format that enables retail gas customers to compare prices and services on a uniform basis. (Emphasis added.)IRRC adds that similar requirements relating to the electric industry are specified in 66 Pa.C.S.A. § 2807(d)(2) and that some parties have questioned whether door-to-door sales will provide the customer with the information needed to make an informed choice how door-to-door sales can be adequately monitored. IRRC believes that these are valid points and that the Commission should explain how the final-form regulation will ensure that customers, when solicited by door-to-door agents, will receive ''adequate, reliable customer information,'' ''in an understandable format'' to enable customers to make informed choices, consistent with the statute. IRRC also asks the Commission to thoroughly explain its consideration and resolution of the comments that raise safety concerns with door-to-door sales and explain how the final-form regulation will adequately protect the public health, safety and welfare. Concerning the hours that door-to-door marketing or sales activities can occur, the Commission should explain how it chose the hours specified in the final-form regulation and why those hours represent the most reasonable hours for both the customer and the agents.
IRRC has two concerns with the paragraph (a)(2) requirement that a supplier notify local municipal officials ''in advance of its schedule.'' First, notification ''in advance'' does not impose a specific time requirement. Second, the provision does not require notice if the schedule changes. IRRC recommends amending paragraph (a)(2) to specify a timeframe for the advance notice and also notification if the schedule changes.
Regarding the subsection (e) requirements relating to language skills, IRRC sees an overall need to address the circumstance where the agent and customer cannot communicate because 66 Pa.C.S.A. §§ 2206(c) and 2807(d)(2) require information to be in an understandable format. After it is established the agent and customer cannot communicate, IRRC questions the need, reasonableness and effectiveness of continued contact and questions the use of ''translation services, electronic language translation devices and language identification cards,'' as excessive and impractical, particularly when there are other methods for a customer to be aware of and participate in customer choice. IRRC is also concerned with this provision as proposed in that it restricts the initial conversation to English and addresses the ''customer's English language skills'' and questions whether a supplier, who is familiar with a demographic area, should be allowed to initiate conversations in a language other than English that is prevalent in that area. As such, IRRC, recommends deleting the word ''English'' so there is flexibility in what language is used first. IRRC questions the use of the word ''shall'' in paragraph (e) and also suggests, to be consistent with Section 111.11, replacing the word ''cancel'' with the word ''rescind'' in paragraph (f)(4).
IRRC supports subsection (g) but questions whether it is too narrow. For example, if a customer says they are not interested, under the regulation, the agent would not have to leave the premises. IRRC suggests that the provision be broadened to require the agent to leave the premises if requested to do so by the customer or if the customer expresses no interest in the product being sold. Finally, concerning subsection (h), IRRC suggests adding language to state within what time-frame the annotating of the database must occur. (IRRC, p. 8-10.)
Resolution
The time of day in which door-to-door marketing must cease was a central topic of the working group that developed the current Interim Guidelines and continues to be a debated topic in this rulemaking. The current Guidelines and the proposed regulation reflect a ''compromise'' between those parties, mostly suppliers, who wanted an expanded timeframe, and those parties, mostly consumer groups, who wanted a more restrictive timeframe. Part of this ''compromise'' was to create the seasonal variation that is reflected in the proposal between ''summer'' hours and ''winter'' hours. Upon careful review of the comments submitted in this ongoing debate, we conclude that we have heard no new or unique argument that convinces us to alter our original proposal. We continue to believe that a seasonal variation, with the 7 p.m. end time between October and March and the 8 p.m. end time between April and September is a reasonable ''middle ground'' that adequately protects consumer safety and privacy while providing suppliers with sufficient time to market their services. We reject suggestions that we expand the permitted time to 9 p.m. as we believe it is simply too intrusive upon households that expect an increased measure of privacy later in the evening. Likewise, we reject suggestions that restrict the permitted time to 6 p.m. as too limiting; with many potential customers only arriving home from work at 5 p.m. or 6 p.m. We also want to note that when we limit the activities to 7 p.m. or 8 p.m., we are saying that new customer contacts are prohibited after that time. Sale presentations that are already underway when the end-hour is reached are permitted to continue. We also want to emphasize that per subsection (a)(1), municipalities may have restrictions on hours that are more restrictive than outlined in this regulation—and, if so, the more restrictive timeframes in the municipal ordinance apply.
We agree with PEMC that notifying local officials is a duplicative requirement because when a supplier seeks a license from the municipality, the supplier is, in effect, informing the municipality of its activities. We also question the appropriateness of such ''courtesy'' requirements in binding regulations. This will make moot IRRC's request that we specify timeframes for such notifications, including schedule changes.
Concerning the language provisions in subsection (e), we agree with IRRC and will remove the reference to ''English'' in the first sentence. We also agree with IRRC that the sales transaction should end if there is a language barrier present. As such, we must reject the request of PEMC and RESA to expand the use of translators and translation services.
Concerning subsection (f), we agree with PEMC, RESA and NEM and will amend subsection (f)(3) to require the sending of a disclosure statement only if it has not already been provided. The written disclosure statement is a key consumer protection that helps ensure that the customer is receiving accurate customer information in an understandable format that is sufficient for the customer to make informed choices regarding the purchase of competitive energy products offered by suppliers. The electric disclosure regulations at 52 Pa. Code § 54.5 and the analogous gas disclosure regulations at 52 Pa. Code § 62.75 require that new customers receive, in writing, a disclosure that includes:
• The rate, fixed or variable. If variable, the conditions upon variability.
• Length of agreement.
• Explanation of sign-up bonuses, incentives, promotions, special services, etc.
• Cancellation and renewal provisions.
• Contact information for the supplier, the utility, and the PUC.
• Explanation of penalties, fees and exceptions in a larger font size.
• A three-day right of rescission without penalty and information on how to exercise the right of rescission.
• A statement directing the consumer to the PUC if they have a problem or concerns with the supplier.
• A statement explaining that while distribution charges are regulated by the PUC and transmission charges are regulated by FERC, generation charges are set by the supplier chosen by the customer.
With regard to those commenters who suggest that we should prohibit door-to-door sales because they believe a consumer cannot make an ''informed'' choice based upon information provided by only one representative, we must point out that we have been sponsoring extensive consumer education efforts since retail choice became available. Our customer information regulations (52 Pa. Code §§ 54.1—54.9 for electric and 52 Pa. Code §§ 62.71—62.80 for gas) include numerous provisions intended to provide consumers with the information they need about their energy choices, including:
• Supplier pricing, including a requirement that advertised prices must equal the price in the disclosure which then must also equal the price on the bill.
• Use of common and consistent terminology in customer communications, including marketing, billing and disclosure statements.
• Bill format requirements that include itemization and defining of charges; pricing in standard pricing units; 12-month usage histories and averages; company contact information; and a statement that the PUC regulates distribution rates, FERC regulates transmission rates, and generation rates are set by the supplier chosen by the customer.
• Requirements that electric suppliers have information available to customers on generation supply sources including documentation to support claims of renewable energy and prohibitions on using vague, unsubstantiated claims of environmental benefits.
• Customer information privacy requirements.
• Complaint handling procedures.
Additionally, the Commission has overseen an extensive consumer education process that includes utility efforts and Commission-funded efforts. For the most recent example of the Commission's consumer education efforts, please see the Investigation of Pennsylvania's Retail Electricity Market: Intermediate Work Plan, Docket No. I-2011-2237952, Order entered March 2, 2012. Of course our most important consumer education tool is the Commission's electric-shopping website, www.papowerswitch. com. This website includes information on:
• Switching power and what you are switching.
• Understanding your bill.
• Choosing an electric supplier.
• Your rights and protections.
• How to shop for electricity.
• Current supplier offers and online enrollment.
• Clean energy suppliers.
• Shopping worksheet.
• Questions to ask.
• Help paying your bill; assistance programs.
• Ways to save energy.
• Renewable energy questions.
• Frequently asked questions.
• Glossary of common electric competition terms.
• Contact information for suppliers and utilities, including web links and telephone numbers.
• Contact information for the PUC.
• Customer shopping statistics.
We believe that these consumer education efforts and existing regulations, augmented by the proposed regulations in this instant rulemaking, fulfill the Commission's obligations under 66 Pa.C.S.A. §§ 2206(c) and 2807(d)(2) to make sure that customers have the information they need to successfully navigate the competitive energy market.
Also concerning subsection (f), we agree with RESA and IRRC and will replace the word ''cancel'' with ''rescind'' in (f)(4), since that is the more appropriate term to describe what the customer is doing. ''Rescinding'' a contract within the three-day rescission period is indeed different from ''canceling'' a contract. We will also amend subsection (f)(2) to align this provision with the changes we are making at Section 111.7.
Concerning subsection (g), we agree with IRRC and will strengthen this sentence by adding that the agent should leave the premises if the potential customer expresses no interest in what is being sold. We will also, per IRRC's request, add language to subsection (h) specifying that a supplier should annotate, within two business days, existing marketing and sales databases with requests to be exempted from further sales contacts.
Regarding the concerns expressed by IRRC as to how the Commission will monitor and enforce these regulations, please see our discussion relating to §§ 111.1 and 111.3.
We will also delete language in subsection (f)(2) that is duplicative of language at § 111.7(b)(2)(i).
§ 111.10. Telemarketing.
RESA believes that subsections (a)(1) and (2) should be consolidated into one section with the burden of ensuring compliance for these non-Commission requirements to be left with the suppliers and their agents because ''the Telemarketer Registration Act is within the jurisdiction of the Attorney General and is subject to change and interpretation by the Attorney General's Office.'' (RESA, p. 13.)
OCA/AARP recommends that subsection (b) should mirror the language of § 111.9(d)(1) in that the agent should provide his first name and the supplier name he/she represents immediately after greeting the potential customer. Moreover, the agent should be required to provide the same information to the customer regarding agent identification as contained in the door-to-door regulations. Telephone agents should advise potential customers of who they specifically represent and clearly state they are not representing any other entity.
NEM and PEMC recognize the common telemarketing practice of an agent providing a fictitious name in order to protect the identity of the agent for security reasons. NEM requests that the Commission modify Subsection § 111.10(b) to permit this practice to continue. PEMC agrees with NEM's request but would do so only if the fictitious name is directly assigned to a specific agent/individual.
IRRC notes that paragraphs (a)(1), (2) and (4) place in PUC regulation requirements under the Telemarketer Registration Act and asks if the PUC has established a Memorandum of Understanding with the Attorney General. The Commission should explain how it will enforce this provision. IRRC also recommends adding to subsection (b) the same or similar requirement for agent identification as paragraph 111.9(d)(1). Finally, IRRC notes that paragraph 111.9(d)(1) requires the door-to-door salesperson to ''state he is not working for and is independent of the local distribution company or another supplier'' and asks why isn't this included in subsection (b).
Resolution
We agree with OCA/AARP and IRRC and will revise subsection (b) to substantially reflect the analogous language in § 111.9(d) so that the telemarketing agent will identify himself to the potential customer the same as a door-to-door agent would have to do. We decline to address the use of fictitious names in the regulation as requested by NEM and PEMC, but will note here that we agree with PEMC that the use of fictitious names is acceptable, but only if the fictitious name is attributable to a specific agent that can be identified if needed. In response to IRRC's and RESA's concerns about enforcing the state telecommunication laws that are cited in this section, we again note that the Commission has a long-standing MOU with the OAG. Under this MOU, the Commission can refer matters that come to the Commission's attention but are more appropriately handled by the OAG due to jurisdictional concerns. As the competitive energy market continues to evolve, additional regulations and enforcement mechanisms may be developed. Given this possibility, we decline to reference all of the applicable regulations. Referencing them also risks communicating the false impression that the Commission is limited to just those regulations and enforcement methods that are referenced.
The OAG had concerns with the use of the word ''intent'' in paragraph (a)(4) and suggested the word ''request'' replace it. We have made this revision.
§ 111.11. Receipt of disclosure statement and right to rescind transaction.
RESA proposes that the phrase ''and is not submitted to the verification process'' be removed from subsection (a) as it would not be necessary if RESA's proposed definition for ''verification process'' is adopted. This would be consistent with RESA's suggested exclusion from verification process for non-agent transactions set forth in § 111.7(b). In addition, RESA recommends the last sentence of subsection (b) become new paragraph (c) because in addition to regular mail, a customer could receive a disclosure statement online or via electronic mail. RESA would add additional paragraphs (d) (online enrollment process) and (e) (electronic mail) that would create a rebuttable presumption of receipt of disclosure statement if the customer agrees to receive the disclosure statement in that fashion.
OCA/AARP has concerns about recent changes proposed by the federal government to the guaranteed delivery time of the United States Postal Service and this would make the three day rebuttable presumption language of subsection 111.11(c) inappropriate. OCA/AARP suggests that the Commission consider removing the language or to extend the timeframe beyond three days.
IRRC notes that subsection 111.12(c) cross-references 52 Pa. Code §§ 54.5(d) and 62.75(d), which address disclosure statements and asks why these weren't cross-referenced in Section 111.11. Also, given that subsection (c) addresses receipt of a disclosure statement by mail, IRRC states that the regulation should also provide similar requirements for electronic delivery of disclosure statements. (IRRC, p. 10.)
Resolution
We agree with IRRC and will include references to the electric and gas disclosure regulations, 52 Pa. Code §§ 54.5 and 62.75. We also agree with IRRC and RESA about inserting language addressing the electronic provision of disclosures. However, we decline to modify the three-day mailing timeframe as requested by OCA/AARP. While we understand their concern with possible U.S. Postal Service changes to mail delivery, these possible changes are only speculative at this point. If the U.S. Postal Service makes changes in the future that could impact this timeframe, we can revisit the matter.
§ 111.12. Consumer protection.
CAC urges the Commission to adopt the language of § 111.12 and to have the Commission maintain a ''Do Not Call'' list with respect to door-to-door solicitations. OCA/AARP urges the Commission to adopt the language of § 111.12. OCA/AARP also asks that the provisions of the marketing guidelines at Guideline M(2)11 be included in the regulations, possibly as part of § 111.12. IRRC makes this same point.
RESA seeks clarification of the two separate issues of ''rescission'' and the federal ''cooling off period.'' RESA suggests that the language of subsection (c) include the qualifying language that the three-day right of rescission and the federal cooling off period may run concurrently.
Resolution
We agree with OCA/AARP and IRRC and will include in this section the provisions section M(2) of the current Interim Guidelines. Per RESA's request, we will include language clarifying that the three-day rescission period (See 52 Pa. Code §§ 54.5 and 62.75) and the federal ''cooling off'' period can run concurrently. We decline to adopt CAC's suggestion that the PUC maintain a list of customers who do not want door-to-door solicitations, similar do the telemarketing ''Do Not Call'' lists. These regulations provide for sufficient protections for consumers who object to door-to-door solicitations. This includes the provisions in Section 111.9 that require an agent to immediately leave the residence when requested and for suppliers to respect all requests not to be visited and documenting their marketing databases noting such requests. We again point out that many municipalities have ordinances restricting or even prohibiting door-to-door activity, and that these local ordinances must be followed.
§ 111.13. Customer complaints.
PEMC requests that the last sentence of § 111.13(b) include language that would allow the retrieval of the record be satisfied by ''customer name, account number or any other effective means in order to obtain access to the information.'' (PEMC, p. 10.) RESA recommends that subsection (d) include a sentence that would encourage a customer to contact the company to resolve a dispute prior to seeking assistance from the Commission. OCA/AARP urges the adoption of § 111.13 without modification.
Resolution:
We agree with PEMC and will add ''or any other effective means in order to obtain access to the information'' because how the information is retrieved is not important; just that it is retrievable. Concerning RESA's suggestion that we encourage customers to first contact the company to resolve disputes before seeking assistance from the Commission, we note that the general practice of the Commission's call center is to first refer the customer back to the company if they have not previously contacted the company about the disputed matter. However, we are reluctant to codify this practice because there are exceptions where this is not appropriate. For example, in cases of slamming, we do not think it is appropriate to force the customer to go back to the entity that allegedly slammed them,—in part because the customer may not even have contact information for said entity. Likewise, if the complaint includes allegations of egregious door-to-door marketing activities,—that is something Commission staff will want to hear about, and the customer should not simply be referred back to the company that is the subject of the allegations.
§ 111.14. Notification regarding marketing or sales activity.
OCA/AARP support the adoption of § 111.14(a) and (b) without modification.
Many parties representing suppliers and energy marketing associations disagree with the mandatory language contained in § 111.14(b) and (c). NEM notes that the proposed regulation differs from the guidelines in that it requires the supplier to provide the utility with information while the guidelines did not require this. NEM urges the Commission to reserve the decision to share this information with the utility to the supplier's business discretion. While DES supports ''encouraging'' suppliers to provide information to EDCs, it believes that they should not be required to do so. DES believes that any such notification should occur no later than the morning of the commencement of the marketing activities.
PEMC feels that the language of § 111.14(b) should be changed from ''shall'' to ''shall be encouraged'' to provide the information necessary to help utility customer service representatives understand who the supplier is and what the supplier does. (PEMC, p. 11.) RESA would change the word ''shall'' to ''should'' and have the local distribution company direct the customer to the appropriate supplier for information.
Concerning § 111.14(c), some parties suggested that the proposed subsection may conflict with the Commission's desire to encourage customer shopping. FES believes that ''an EDC should not use customer contacts regarding supplier options to market its own price and terms unless that information is specifically requested by the customer during the call . . . any specific questions about supplier-related questions should be referred to the supplier [and] any questions about supplier choice should be referred to the Commission's website at PAPowerSwitch.com.'' (FES at 5)
OCA/AARP believes that proposed § 111.14(c) may conflict with an established Commission order set forth in the Retail Markets Investigation.12 OCA/AARP notes that the programs being considered in the current Retail Markets Investigation require an EDC's customer service representative (CSR) to explain the program to the customer and this would include EGS pricing under the program. OCA/AARP would include language in the subsection that would permit a distribution company to provide information regarding a supplier's prices and terms when it was part of one of these programs.
FirstEnergy is also concerned with a possible conflict between § 111.14 and the referral programs that may result from the Commission's orders in its Retail Markets Investigation. As such, FirstEnergy requests that the Commission include an exception in § 111.14 for calls related to an EDC's customer referral program.
IRRC notes that Subsection (a) requires a supplier conducting marketing or sales activities ''that the supplier anticipates may generate phone calls and inquiries to the Commission'' to notify the PUC's Bureau of Consumer Services. IRRC finds this requirement to be unclear and subjective and questions how it could be enforced. IRRC asks the Commission to review this provision and clarify its intent.
Resolution
Supplier notification to utilities and to the PUC of their marketing efforts was a controversial and much-debated subject during the development of the Interim Guidelines, and that controversy continues into this rulemaking. Upon careful consideration of the comments, we are persuaded that the sweeping nature of the proposed rule is not appropriate or needed at this time. We also agree with IRRC that the proposal was somewhat subjective and would be difficult to enforce. We think a more careful, narrowly-targeted rule would be more objective, easier to enforce, and more effective in addressing our primary concerns. Our primary concern in promulgating these regulations is allowing the use of door-to-door marketing to sell energy services and making sure that public safety and privacy is protected and that consumers are receiving the information they need to make informed energy choices. Since our primary concern is door-to-door marketing, we will revise this section to require the notification of marketing activities to only door-to-door marketing activities.
Requiring suppliers to report this information to the Commission will assist the Commission in monitoring the amount of door-to-door activity and track any resulting complaints or concerns. This will also assist the Commission with enforcing the instant regulations. Commission staff will be able to compare the complaints concerning door-to-door marketing efforts with the notices received by the Commission to make sure that the Commission is indeed being notified appropriately. Commission staff will also be able to use this information to respond to questions from local and state officials about activities going on in their communities. Notifying the local utility of their door-to-door activities is appropriate because it is likely that consumers, possibly out of confusion, may contact the utility about agents selling energy services. This narrower requirement is also more practical. With approximately thirty suppliers serving residential consumers in the PECO and PPL service territories alone, requiring notification of all marketing activities (phone, direct mail, internet, etc.) could overburden both the Commission and the utilities with notices. This risks creating an unmanageable burden, with important matters, such as door-to-door activities that should receive greater attention, being buried among a stack of less-urgent notices.
We agree with OCA/AARP and FirstEnergy, and have included an exception to paragraph (c) to make allowances for referral programs or any Commission-sanctioned program that requires utilities to discuss supplier rates and terms. Such programs may become part of the competitive landscape in the coming years and we want to ensure these regulations are flexible enough to accommodate them.
Regulatory Review
Under section 5(a) of the Regulatory Review Act (71 P. S. § 745.5(a)), on October 11, 2011, the Commission submitted a copy of the notice of proposed rulemaking, published at 41 Pa.B. 5624 (October 22, 2011), to IRRC and the Chairpersons of the House Consumer Affairs Committee and the Senate Consumer Protection and Professional Licensure Committee for review and comment.
Under section 5(c) of the Regulatory Review Act, IRRC and the House and Senate Committees were provided with copies of the comments received during the public comment period, as well as other documents when requested. In preparing the final-form rulemaking, the Department has considered all comments from IRRC, the House and Senate Committees and the public.
Under section 5.1(j.2) of the Regulatory Review Act (71 P. S. § 745.5a(j.2)), on May 15, 2013, the final-form rulemaking was deemed approved by the House and Senate Committees. Under section 5.1(e) of the Regulatory Review Act, IRRC met on May 16, 2013, and approved the final-form rulemaking.
Conclusion
Accordingly, pursuant to sections 501, 504, 1501, 1504, 2206(b), 2208(b) and(e), 2807(d)(1) and 2809(b) and (e) of the Public Utility Code, 66 Pa.C.S. §§ 501, 504, 1501, 1504, 2206(b), 2208(b) and (e), 2807(d)(1) and 2809(b) and (e); sections 201 and 202 of the Act of July 31, 1968, P. L. 769 No. 240, 45 P. S. §§ 1201 and 1202, and the regulations promulgated thereunder at 1 Pa. Code §§ 7.1, 7.2, and 7.5; section 204(b) of the Commonwealth Attorneys Act, 71 P. S. § 732.204(b); section 745.5 of the Regulatory Review Act, 71 P. S. § 745.5; and section 612 of the Administrative Code of 1929, 71 P. S. § 232, and the regulations promulgated thereunder at 4 Pa. Code §§ 7.231—7.234, the Commission proposes adoption of the final-form regulations establishing best practices for marketing and sales activities for electric and natural gas suppliers serving residential customers, as noted and set forth in Annex A; Therefore,
It Is Ordered That:
1. The regulations of the Commission, 52 Pa. Code, are amended by adding §§ 111.1—111.14 to read as set forth in Annex A.
2. The Secretary shall submit this order and Annex A to the Office of Attorney General for approval as to legality.
3. The Secretary shall submit this order and Annex A to the Governor's Budget Office for review of fiscal impact.
4. The Secretary shall submit this order and Annex A for review by the designated standing committees of both houses of the General Assembly, and for review and approval by IRRC.
5. The Secretary shall deposit this order and Annex A with the Legislative Reference Bureau for publication in the Pennsylvania Bulletin.
6. The regulations in Annex A shall become effective upon publication in the Pennsylvania Bulletin.
7. The contact person for technical issues related to this rulemaking is Dan Mumford, Manager—Informal Compliance and Competition, Bureau of Consumer Services/Office of Competitive Market Oversight, (717) 783-1957. That the contact person for legal issues related to this rulemaking is Lawrence F. Barth, Assistant Counsel, Law Bureau, (717) 772-8579. Alternate formats of this document are available to persons with disabilities and may be obtained by contacting Sherri DelBiondo, Regulatory Coordinator, Law Bureau, (717) 772-4597.
ROSEMARY CHIAVETTA,
Secretary(Editor's Note: For the text of the order of the Independent Regulatory Review Commission relating to this document, see 43 Pa.B. 3067 (June 1, 2013).)
Fiscal Note: Fiscal Note 57-283 remains valid for the final adoption of the subject regulations.
Attachment
MEMORANDUM OF UNDERSTANDING This Memorandum of Understanding is made this 5th day of February 1998, by and between the Pennsylvania Office of Attorney General (herein ''OAG'') and the Pennsylvania Public Utility Commission (herein ''PUC'').
Whereas, on December 3, 1996, Governor Tom Ridge signed into law the Electricity Generation Customer Choice and Competition Act, 66 Pa.C.S. §§ 2801—12 (herein ''Electricity Competition Act''). The purpose of the Electricity Competition Act is to open up competition in the electric utility industry by giving all retail customers the ability to buy electric generation from their choice of electric generation suppliers.
Whereas, section 2809 of the new law gives the PUC the authority to license electric generation suppliers and section 2811 empowers the PUC to monitor the supply and distribution of electricity to retail customers to prevent anticompetitive or discriminatory conduct, and to prevent the unlawful exercise of market power.
Whereas, section 2811 also gives the PUC authority to conduct investigations, upon complaint or its own motion, and to refer its findings to the OAG or appropriate federal agencies whenever it has reason to believe that ''anticompetitive or disciplinary conduct, including the unlawful exercise of market power is preventing the retail electricity customers in this Commonwealth from obtaining the benefits of a properly functioning and workable competitive retail electricity market.''
Whereas, the potential now exists for electric generation suppliers to engage in unfair or deceptive marketing practices and other anticompetitive or discriminatory conduct, the PUC adopted internal procedures for handling electric competition complaints under section 2811, including appropriate referral procedures, which became effective August 8, 1997.
Whereas, both the PUC and the OAG recognize that other disputes related to terms, conditions and adequacy of service of a contractual nature often involve dual jurisdiction between the PUC under its service standards provision contained in 66 Pa.C.S. § 1501, and the OAG under Pennsylvania's Unfair Trade Practices and Consumer Protection Law, 73 P. S. §§ 201-1—209-6, the Plain Language Consumer Contract Act, 72 P. S. §§ 2201—12 and the Federal Trade Commission Act, 15 U.S.C. §§ 41—58.
Whereas, the OAG has enforcement authority under Pennsylvania's Unfair Trade Practices and Consumer Protection Law and the federal antitrust laws, 15 U.S.C. §§ 1, et seq., to challenge unfair or deceptive marketing practices, terms-of-service provisions, and other anti- competitive or discriminatory conduct engaged in by electric generation suppliers.
Whereas, for both terms, conditions and adequacy of service complaints and section 2811 complaints, the PUC has authority under the Public Utility Code, 66 Pa.C.S. §§ 101, et seq., to initiate proceedings to develop guidelines, policy statements or regulations to address an industry-wide issue or to file a section 701 complaint seeking a cease and desist order (or any other relief authorized by law) where more immediate and company-specific action is warranted.
Whereas, it would be mutually advantageous for the PUC and the OAG to develop interagency protocol procedures to maximize the ability of the OAG to obtain effective and adequate relief on behalf of consumers who have been injured by violations of the state consumer protection or federal antitrust laws and the PUC to develop, in appropriate cases, guidelines, policy statements or regulations to address industry-wide problems or obtain cease and desist orders for specific violations of the Public Utility Code.
Now, Therefore, the PUC and the OAG agree that the following protocol shall apply whenever the PUC or the OAG receive a complaint alleging unfair or deceptive marketing practices, terms-of-service disputes, or other anticompetitive or discriminatory conduct engaged in by electric generation suppliers.
1. The agency that receives the original complaint will endeavor to complete its initial review in a prompt and timely manner.
2. At the completion of its initial review, the reviewing agency shall refer the complaint and its findings to the other agency for review and possible action if the original reviewing agency believes that the matter complained of is within the authority and jurisdiction of the other agency.
3. The PUC and the OAG agree to provide each other with periodic status reports, as appropriate, of any investigation begun because of a referral pursuant to this protocol procedure, including a final report when the investigation is completed or closed.
4. The PUC and OAG agree to meet informally on a quarterly basis to discuss matters of common interest and to share statistical information or data and/or activity reports generated by either agency summarizing terms-of-service and/or electric competition complaints handled by that agency during the applicable reporting period.
5. In referring complaints or providing status reports to the other agency, the investigating agency should not disclose any information that is protected by a confidentiality agreement, order, or law unless a waiver has been obtained from the party protected by the agreement, order, or law.
6. Nothing in this protocol shall require or prohibit either the PUC or the OAG from initiating any informal or formal action at the conclusion or its own investigation that it would be authorized to bring under any existing law.
7. Nothing in this protocol shall require, prohibit, or otherwise restrict the PUC's Bureau of Consumer Services from continuing to handle individual complaints concerning account eligibility criteria, credit and deposit practices, account billing, and termination disputes consistent with the existing policies and procedures set out in Chapter 56 of the Pa. Code, Title 52.
8. Nothing in this protocol shall require, prohibit, or otherwise restrict the OAG from continuing to handle individual complaints concerning unfair trade practices, consumer protection law violations, or antitrust law violations.
This agreement may be modified or terminated only upon written agreement of the PUC and the OAG.
Pennsylvania Public Utility Commission
John M. Quain, Chairman
Robert K. Bloom, Vice Chairman
John Hanger, Commissioner
David W. Rolka, Commissioner
Nora Mead Brownell, CommissionerPennsylvania Office of Attorney General
D. Michael Fisher, Attorney General
The undersigned have reviewed and approved the foregoing Memorandum of Understanding:
Counsel, Public Utility Commission
Comptroller, Public Utility Commission
Annex A
TITLE 52. PUBLIC UTILITIES
PART I. PUBLIC UTILITY COMMISSION
Subpart F. COMPETITIVE MARKETS
CHAPTER 111. MARKETING AND SALES PRACTICES FOR THE RETAIL RESIDENTIAL ENERGY MARKET Sec.
111.1. General. 111.2. Definitions. 111.3. Supplier liability for its agent. 111.4. Agent qualifications and standards; criminal background investigations. 111.5. Agent training. 111.6. Discipline. 111.7. Customer authorization to transfer account; transaction; verification; documentation. 111.8. Agent identification; misrepresentation. 111.9. Door-to-door sales. 111.10. Telemarketing. 111.11. Receipt of disclosure statement and right to rescind transaction. 111.12. Consumer protection. 111.13. Customer complaints. 111.14. Notification regarding marketing or sales activity. § 111.1. General.
The purpose of this chapter is to establish standards and practices for marketing and sales activities for EGSs and NGSs and their agents to ensure the fairness and the integrity of the competitive residential energy market. EGSs and NGSs and their agents shall comply with these standards and practices when engaged in sales and marketing activities involving residential customers. When these standards and practices do not address a specific situation or problem, the supplier shall exercise good judgment and use reasonable care in interacting with customers and members of the public.
§ 111.2. Definitions.
The following words and terms, when used in this chapter, have the following meanings, unless the context clearly indicates otherwise.
Act—Telemarketer Registration Act (73 P. S. §§ 2241—2249).
Agent—A person who conducts marketing or sales activities, or both, on behalf of a licensed supplier. The term includes an employee, a representative, an independent contractor or a vendor. The term also includes subcontractors, employees, vendors and representatives not directly contracted by the supplier who conduct marketing or sales activities on behalf of the supplier.
Commission—The Pennsylvania Public Utility Commission.
Customer—A natural person in whose name a residential EDC, NGDC, EGS or NGS service account is listed and who is primarily responsible for payment of bills rendered for the service.
Disclosure statement—A written disclosure of the terms of service between a supplier and a customer that satisfies the definition of ''consumer contract'' in section 3 of the Plain Language Consumer Contract Act (73 P. S. § 2203) containing information as required in, and developed consistent with, § 54.5 (relating to disclosure statement for residential and small business customers) for electric generation service and § 62.75 (relating to disclosure statement for residential and small business customers) for natural gas supply service.
Distribution company—An EDC or an NGDC.
Door-to-door sales—A solicitation or sales method whereby an agent proceeds randomly or selectively from residence to residence.
EDC—Electric distribution company—The term as defined in 66 Pa.C.S. § 2803 (relating to definitions).
EGS—Electric generation supplier—The term as defined in 66 Pa.C.S. § 2803.
Electric generation service—Electricity and related services.
Energy service—Electric generation service or natural gas supply service.
NGDC—Natural gas distribution company—The term as defined in 66 Pa.C.S. § 2202 (relating to definitions).
NGS—Natural gas supplier—The term as defined in 66 Pa.C.S. § 2202.
Natural gas supply services—The term as defined in 66 Pa.C.S. § 2202.
Public event—An event in a public location which may facilitate sales and marketing activities or may result in a customer enrollment transaction.
Sales and marketing—The extension of an offer to provide services or products communicated orally, electronically or in writing to a customer.
Supplier—An EGS or an NGS.
Telemarketing—An activity, plan, program or campaign using one or more telephones that is conducted to induce customers to purchase goods or services. See section 2 of the act (73 P. S. § 2242), regarding definitions.
Transaction—A process by which a customer authorizes the transfer of his account to the supplier.
Transaction document—Contracts and forms used by a supplier to enroll a customer for service.
Verification—Customer validation of his intent to enter into a contract and receive service from a supplier.
Verification process—An action by means of written, audio or electronic documentation by which a customer validates his intent to enter into a contract and receive service from a supplier.
§ 111.3. Supplier liability for its agent.
(a) A supplier may use an agent to conduct marketing or sales activities in accordance with applicable Commission rules, regulations and orders.
(b) In accordance with § 54.43(f) (relating to standards of conduct and disclosure for licensees) for an EGS and § 62.114(e) (relating to standards of conduct and disclosure for licensees) for an NGS, a supplier is responsible for fraudulent, deceptive or other unlawful marketing acts performed by its agent.
(c) Consistent with due process, for violations committed by the supplier's agent, the Commission may:
(1) Suspend or revoke a supplier's license.
(2) Impose fines for fraudulent acts, violations of Commission regulations and orders.
§ 111.4. Agent qualifications and standards; criminal background investigations.
(a) A supplier shall develop standards and qualifications for individuals it chooses to hire as its agents. A supplier may not hire an individual that fails to meet its standards.
(b) A supplier may not permit a person to conduct door-to-door sales and marketing activities until it has obtained and reviewed a criminal history record from the Pennsylvania State Police and from every other state in which the person resided for the last 12 months. For a current employee or agent who conducts sales and marketing activities, a supplier shall obtain a criminal history record by September 27, 2013.
(1) The criminal background investigation shall include checking the sex offender registry commonly referred to as the ''Megan's Law'' registry maintained by the Pennsylvania State Police.
(2) A supplier may not hire a person as an employee or an agent for door-to-door marketing or sales who was convicted of a felony or misdemeanor when the conviction reflects adversely on the person's suitability for this type of employment.
(c) When a supplier contracts with an independent contractor or vendor to perform door-to-door activities, the supplier shall confirm that the contractor or vendor has performed criminal background investigations on an agent accordance with this section and with the standards set by the supplier.
§ 111.5. Agent training.
(a) A supplier shall ensure the training of its agents on the following subjects:
(1) State and Federal laws and regulations that govern marketing, telemarketing, consumer protection and door-to-door sales, including consumer protection regulations in Chapters 54 and 62 (relating to electricity generation customer choice; and natural gas supply customer choice), applicable provisions in Chapters 56, 57 and 59 (relating to standards and billing practices for residential utility service; electric service; and gas service) and the act.
(2) Responsible and ethical sales practices as described in this chapter.
(3) The supplier's products and services.
(4) The supplier's rates, rate structures and payment options.
(5) The customer's right to rescind and cancel contracts.
(6) The applicability of an early termination fee for contract cancellation when the supplier has one.
(7) The necessity of adhering to the script and knowledge of the contents of the script if one is used.
(8) The proper completion of transaction documents.
(9) The supplier's disclosure statement.
(10) Terms and definitions related to energy supply, transmission and distribution service as found in the dictionary of utility terms on the Commission's web site at www.puc.pa.gov.
(11) Information about how customers may contact the supplier to obtain information about billing, disputes and complaints.
(12) The confidentiality and protection of customer information and §§ 54.43(d) and 62.114 (relating to standards of conduct and disclosure for licensees).
(b) A supplier shall document the training of an agent and maintain a record of the training for 3 years from the date the training was completed.
(c) A supplier shall make training materials and training records available to the Commission upon request. A supplier is not required to submit training materials and programs for advance Commission review and approval.
(d) When a supplier contracts with an independent contractor or vendor to perform marketing or sales activities on the supplier's behalf, the supplier shall confirm that the contractor or vendor has provided supplier-approved training to agents and independent contractors in accordance with this section.
(e) The supplier shall monitor telephonic and door-to-door marketing and sales calls to:
(1) Evaluate the supplier's training program.
(2) Ensure that agents are providing accurate and complete information, complying with applicable rules and regulations and providing courteous service to customers.
§ 111.6. Discipline.
In developing internal agent discipline practices and procedures, a supplier shall consider the Commission's regulations regarding the unauthorized transfer of customer accounts in §§ 57.171—57.179 and 59.91—59.99 (relating to standards for changing a customer's electricity generation supplier; and standards for changing a customer's natural gas supplier) and the violation of other consumer protections.
§ 111.7. Customer authorization to transfer account; transaction; verification; documentation.
(a) A supplier shall establish a written, oral or electronic transaction process for a customer to authorize the transfer of the customer's account to the supplier.
(1) A document used to complete a transaction must include a means to identify, when an agent is involved, the agent who completed the transaction and a notation indicating whether the transaction was the result of:
(i) A door-to-door call or other in-person contact with an agent.
(ii) A telephone contact with an agent.
(iii) A written document completed and mailed to a supplier by a customer outside the presence of, or without interaction with, an agent.
(iv) An electronic document completed and uploaded to a supplier's web site or e-mailed to a supplier by a customer outside the presence of, or without interaction with, an agent.
(2) A supplier shall provide a copy of documentation used in a customer transaction to the Commission upon request.
(b) A supplier shall establish a process to verify a transaction that involved an agent. The process shall confirm that the customer authorized the transfer of the customer's account to the supplier. This subsection does not apply to a transaction that was completed solely by the customer as set forth in subsection (a)(1)(iii) and (iv).
(1) A supplier may use a third party to verify transactions.
(2) The verification process shall be separate from the transaction process and initiated only after the transaction has been finalized. When verifying a transaction that resulted from an agent's contact with a customer at the customer's residence, the verification process shall be initiated only after the agent has physically exited the customer's residence, unless the customer agrees that the agent may remain in the vicinity of the customer during the verification process. Prior to initiating the verification process, the agent shall inform the customer that the agent may not be in the vicinity during the verification unless the customer agrees to the agent's presence.
(3) A customer shall be informed of the 3-business-day right of rescission of the transaction under §§ 54.5(d) and 62.75(d) (relating to disclosure statement for residential and small business customers) and the customer's rights under section 7 of the Unfair Trade Practices and Consumer Protection Law (73 P. S. § 201-7) at the end of the verification process contact.
(4) A supplier shall maintain a record of a verification in a system that is capable of retrieving the record by customer name and customer account number for a period of time equivalent to at least six billing cycles to enable compliance with § 57.177 (relating to customer dispute procedures) for an EGS and § 59.97 (relating to customer dispute procedures) for an NGS.
(5) The verification record must include the transaction documents and the following information:
(i) The date that the transaction was completed.
(ii) The name or identification number of the agent that completed the transaction.
(iii) The date of the verification.
(iv) The name or identification number of the individual that conducted the verification.
(v) The results of the verification.
(vi) The date that the disclosure statement was provided to the customer and the method by which it was provided.
(6) A supplier shall provide copies of verification records to the Commission upon request.
(c) When a supplier is informed that a transaction could not be verified, the supplier shall contact the customer by telephone, e-mail or letter and explain that the transaction could not be verified. The supplier may offer assistance to correct the problem so that the transaction can be resubmitted to the verification process.
§ 111.8. Agent identification; misrepresentation.
(a) A supplier shall issue an identification badge to agents who conduct door-to-door activities or appear at public events. The badge must:
(1) Accurately identify the supplier, its trade name and logo.
(2) Display the agent's photograph.
(3) Display the agent's full name.
(4) Be prominently displayed.
(5) Display a customer-service phone number for the supplier.
(b) Upon first contact with a customer, an agent shall identify the supplier that he represents. The agent shall state that he is not working for and is independent of the customer's local distribution company or other supplier. This requirement shall be fulfilled by both an oral statement by the agent and by written material provided by the agent.
(c) When conducting door-to door activities or appearing at a public event, an agent may not wear apparel or accessories or carry equipment that contains branding elements, including a logo, that suggests a relationship that does not exist with an EDC, NGDC, government agency or another supplier.
(d) A supplier may not use the name, bills, marketing materials or consumer education materials of another supplier, EDC, NGDC or government agency in a way that suggests a relationship that does not exist.
(e) An agent of a supplier that is an affiliate of a distribution company shall comply with the rules regarding affiliate marketing in § 54.122 (relating to code of conduct) for an EGS and in § 62.142 (relating to standards of conduct) for an NGS.
(f) A supplier or supplier agent may not say or suggest to a customer that a utility customer is required to choose a competitive energy supplier.
§ 111.9. Door-to-door sales.
(a) A supplier and its agents shall comply with local ordinances regarding door-to-door marketing and sales activities. A supplier shall limit door-to-door marketing or sales activities to the hours between 9 a.m. and 7 p.m. during the 6 months beginning October 1 and ending March 31, and to the hours between 9 a.m. and 8 p.m. during the months beginning April 1 and ending September 30. When a local ordinance has stricter limitations, a supplier shall comply with the local ordinance.
(b) A supplier and its agents shall comply with regulations that govern marketing, consumer protection and door-to-door sales including consumer protection regulations in Chapters 54 and 62 (relating to electricity generation customer choice; and natural gas supply customer choice) and the applicable provisions in Chapters 56, 57 and 59 (relating to standards and billing practices for residential utility service; electric service; and gas service).
(c) When conducting door-to-door sales or marketing activities, an agent shall display his identification badge issued by the supplier. The identification shall be prominently displayed.
(d) When engaging in door-to-door sales or marketing activities, an agent shall comply with the following:
(1) After greeting the customer, the agent shall immediately identify himself by name, the supplier the agent represents and the reason for the visit. The agent shall state that he is not working for and is independent of the local distribution company or another supplier.
(2) The agent shall offer a business card or other material that lists the agent's name, identification number and title, and the supplier's name and contact information, including telephone number. This information does not need to be preprinted on the material. When the information is handwritten, it shall be printed and legible.
(e) When a customer's language skills are insufficient to allow the customer to understand and respond to the information being conveyed by the agent, or when the customer or a third party informs the agent of this circumstance, the agent shall terminate contact with the customer.
(f) When an agent completes a transaction with a customer, the agent shall:
(1) Provide a copy of each document that the customer signed or initialed relating to the transaction. A copy of these documents shall be provided to the customer before the agent leaves the customer's residence. If requested by the customer, a copy of the materials used by the agent during the call shall be provided to the customer as soon as practical.
(2) Explain the supplier's verification process to the customer.
(3) State that the supplier shall send a copy of the disclosure statement about the service to the customer after the transaction has been verified if the disclosure statement has not been previously provided.
(4) State that the customer may rescind the transaction within 3 business days after receiving the disclosure statement.
(g) An agent shall immediately leave a residence when requested to do so by a customer or the owner or an occupant of the premises or if the customer does not express an interest in what the agent is attempting to sell.
(h) A supplier shall comply with an individual's request to be exempted from door-to-door marketing and sales contacts and annotate its existing marketing or sales databases consistent with this request within 2 business days of the individual's request.
§ 111.10. Telemarketing.
(a) A supplier and its agents shall comply with regulations that govern marketing, consumer protection and telemarketing sales including consumer protection regulations in Chapters 54 and 62 (relating to electricity generation customer choice; and natural gas supply customer choice) and applicable provisions in Chapters 56, 57 and 59 (relating to standards and billing practices for residential utility service; electric service; and gas service).
(1) A supplier that is licensed by the Commission and engages in telemarketing is not required to register as a telemarketer under section 3(a) of the act (73 P. S. § 2243(a)), regarding registration requirement, but shall comply with other provisions of the act.
(2) An agent that contracts with a supplier to conduct telemarketing and sales activities on behalf of the supplier shall register as a telemarketer and comply with the act.
(3) A supplier and its agents shall comply with the Telemarketing and Consumer Fraud and Abuse Prevention Act (15 U.S.C.A. §§ 6101—6108) and 16 CFR Part 310 (relating to telemarketing sales rule).
(4) Customer consent to the release of customer information by the distribution company to the supplier to enable competitive solicitations does not constitute an express request to receive telephone solicitation calls. See section 5 of the act (73 P. S. § 2245), regarding unlawful acts and penalties. See the definition of ''do not call list'' in section 2 of the act (73 P. S. § 2242).
(b) An agent who contacts customers by telephone shall, after greeting the customer, immediately identify himself by name, identify the supplier the agent represents and the reason for the telephone call. The agent shall state that he is not working for and is independent of the local distribution company or another supplier. The agent may not say or suggest to a customer that a utility customer is required to choose a competitive energy supplier.
(c) When an agent completes a transaction with a customer, the agent shall explain the supplier's verification process to the customer and state that the supplier will send a copy of the disclosure statement and other material about the service to the customer after the transaction has been verified. At the end of the telephone contact, the agent shall state that the customer may rescind the transaction within 3 business days after receiving the disclosure statement.
§ 111.11. Receipt of disclosure statement and right to rescind transaction.
(a) When a transaction is completed by a customer without the presence of or interaction with an agent and is not submitted to the verification process, a supplier shall provide the customer with a copy of its disclosure statement as soon as it is practical. A customer shall have the right to rescind the transaction within 3 business days after receiving the disclosure statement. See § 54.5(d) (relating to disclosure statement for residential and small business customers), which applies to EGSs, and § 62.75(d) (relating to disclosure statement for residential and small business customers), which applies to NGSs.
(b) After a transaction that involved an agent has been completed and verified, a supplier shall provide the customer with a copy of its disclosure statement. The disclosure statement may be provided in-person or by United States mail. The disclosure statement may be provided electronically if the customer consents to electronic delivery. A customer shall have the right to rescind the transaction within 3 business days after receiving the disclosure statement.
(c) There shall be a rebuttable presumption that a disclosure statement correctly addressed to a customer with sufficient first class postage attached shall be received by the customer 3 days after it has been properly deposited in the United States mail. If delivered in-person, the disclosure will be considered received by the customer on the date of delivery. If delivered electronically, the disclosure will be considered received by the customer on the date it was transmitted electronically.
§ 111.12. Consumer protection.
(a) A supplier and its agents may not discriminate in the provision of electric generation and natural gas as to availability and terms of service to a customer based on race, color, religion, national origin, sex, marital status, age, receipt of public assistance income and exercise of rights under the Consumer Credit Protection Act (15 U.S.C.A. §§ 1601—1693r) and 12 CFR Part 202 (relating to Equal Credit Opportunity Act (Regulation B)). This requirement is consistent with § 54.43(e) (relating to standards of conduct and disclosure for licensees) for EGSs and § 62.114(e) (relating to standards of conduct and disclosure for licensees) for NGSs.
(b) A supplier and its agents that engage in door-to-door marketing or sales shall comply with the Federal cooling-off period requirements. See 16 CFR Part 429 (relating to rule concerning cooling-off period for sales made at homes or at certain other locations).
(c) A supplier and its agents shall comply with the 3-business-day cooling off period requirement in § 54.5(d) (relating to disclosure statement for residential and small business customers) that applies to EGSs and § 62.75(d) (relating to disclosure statement for residential and small business customers) that applies to NGSs. This cooling off period may run concurrently with the Federal cooling off period in subsection (b).
(d) A supplier:
(1) May not engage in misleading or deceptive conduct as defined by State or Federal law, or by Commission rule, regulation or order.
(2) May not make false or misleading representations including misrepresenting rates or savings offered by the supplier.
(3) Shall provide the customer with written information about the products and services being offered, or with instructions for where the information can be obtained.
(4) Shall provide accurate and timely information about services and products being offered. Information includes rates being offered, contract terms, early termination fees and right of cancellation and rescission.
(5) Shall ensure that product or service offerings made by a supplier contain information, verbally or written, in plain language designed to be understood by the customer. This includes providing written information to the customer in a language which the supplier's representative has had substantive discussions with the customer or in which a contract is negotiated.
§ 111.13. Customer complaints.
(a) A supplier shall investigate customer inquiries, disputes and complaints concerning marketing or sales practices. The supplier shall cooperate with the Commission and other government agencies that are investigating complaints about marketing or sales practices prohibited by State and Federal laws and with local law enforcement officials that are investigating complaints about violations of local municipal law.
(b) A supplier shall implement an internal process for responding to and resolving customer inquiries, disputes and complaints. The process shall document as a record the customer inquiry, dispute or complaint, subsequent communications between the supplier and the customer, and the resolution of the inquiry, dispute or complaint. A supplier shall retain the record for a time period equivalent to six billing cycles in a system capable of retrieving that record by customer name and account number or by other effective means to obtain access to the information.
(c) The internal process shall comply with the applicable dispute regulations including:
(1) Section 54.9 (relating to complaint handling process).
(2) Section 56.141 (relating to dispute procedures).
(3) Section 56.151 (relating to general rule).
(4) Section 56.152 (relating to contents of the public utility company report).
(5) Section 57.177 (relating to customer dispute procedures).
(6) Section 59.97 (relating to customer dispute procedures).
(7) Section 62.79 (relating to complaint handling process).
(d) A supplier shall provide a single contact and a list of designated escalation contacts for the Commission staff to access to address consumer inquiries and resolve complaints.
§ 111.14. Notification regarding marketing or sales activity.
(a) When a supplier engages in door-to-door sales and marketing activity, the supplier shall notify the Bureau of Consumer Services no later than the morning of the day that the activity begins. The notification shall include general, nonproprietary information about the activity, the period involved and a general description of the geographical area.
(b) A supplier shall provide the local distribution company with general, nonproprietary information about the door-to-door sales and marketing activity that caused the supplier to provide notice to the Commission in accordance with subsection (a). The supplier shall provide this general information to the distribution company no later than the morning of the day that the sales and marketing activities begin. The distribution company shall use this information only for acquainting its customer service representatives with sales and marketing activity occurring in its service territory so that they may knowledgably address customer inquiries. Consistent with § 54.122 (relating to code of conduct) for an EDC and § 62.142 (relating to standards of conduct) for an NGDC, a distribution company may not use the information for other purposes.
(c) In responding to a customer inquiry about price and service, a distribution company may provide information about its own price and terms but shall refer the customer to the supplier for questions about the supplier's prices and terms. This subsection does not apply in the context of a Commission-approved program that requires a distribution company to provide information about a supplier's prices and terms.
[Pa.B. Doc. No. 13-1154. Filed for public inspection June 28, 2013, 9:00 a.m.] _______
10 DPUC Review of the Current Status of the Competitive Supplier and Aggregator Market in Connecticut and Marketing Practices and Conduct of Participants in that Market, Docket No. 10-06-24, Decision (Mar. 16, 2011) at Guideline IV(d)(4). See also CT Public Law NO. 11-80, § 113(F)(2)(B), effective July 1, 2011.
11 Guideline M(2) states: 2. ''Suppliers shall: a. Not engage in misleading or deceptive conduct as defined by State or Federal law, or by Commission rule, regulation or order; b. Not make false or misleading representations including misrepresenting rates or savings offered by the supplier; c. Provide the customer with written information about the products and services being offered, upon request, or with contact information (phone number, website address, etc.) at which information can be obtained[;] d. Provide accurate and timely information about services and products being offered. Such information shall include information about the rates being offered, contract terms, early termination fees and right of cancellation and rescission[;] e. Ensure that any product or service offerings that are made by a supplier contain information, verbally or written, in plain language that is designed to be understood by the customer. This includes providing written information to the customer in a language in which the supplier's representative has substantive discussions with the customer or in which a contract is negotiated.'' See Interim Guidelines, Annex A at 12.
12 See Investigation of Pennsylvania's Retail Electricity Market: Intermediate Work Plan, Docket Number I-2011-2237952, Order entered March 2, 2012.
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