Pa. PUC Issues Reminders To Retail Suppliers On Marketing Rules, Says Prompted In Part By Specific Marketing Practices Brought To PUC's Attention, Warns Of Penalties, Licensing Actions

PUC Warns Against Use Of Term "Rate Discount"

May 2, 2024

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Copyright 2010-24 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

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The Pennsylvania PUC recently issued a Secretarial Letter to retail energy suppliers, "providing guidance and reminders on what is expected of suppliers when marketing in general and in relation to specific marketing practices that have come to the attention of the PUC’s Office of Competitive Market Oversight (OCMO) and Bureau of Consumer Services (BCS)."

The PUC, "reminds all Suppliers that when contacting a potential customer, regardless of the method or technology utilized, it is imperative that the supplier or any agent of the supplier identify the supplier immediately and that they accurately and completely state the purpose of the contact."

"Failure to do so can easily lead to customer confusion and misunderstanding -- leading to a potential violation of the prohibitions in 52 Pa. Code § 111.12(d), against misleading, false or deceptive conduct or representations," the PUC said

For telemarketing, the PUC said, "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." [emphasis by PUC]

"The PUC stresses that telemarketing agents are to immediately identify themselves upon contacting a potential customer; identify the supplier they are representing; and the reason for the telephone call. We advise Suppliers that the 'reason for the telephone call' is to be specific and to avoid vague and potentially misleading statements (i.e. 'about an urgent matter concerning your generation service', 'about your utility bill', 'about your discount /refund /rebate /bonus' etc.). The PUC advises that these rules and expectations apply to all phone contacts to a potential customer’s household, regardless of whether it is addressed to a utility customer or any member of the household or whether it involves only leaving a voice mail message," the PUC said

"We caution suppliers against the use of 'robocalls' and 'ringless voicemail' per November 2022 guidance from the Federal Communications Commission (FCC)," the PUC said

The PUC further reminded Suppliers that the state and federal 'Do Not Call' list laws and regulations apply to all Suppliers and shield all customers on the list -- regardless of whether that customer appears on the distribution utility’s Eligible Customer List (ECL).

For door-to-door sales, the PUC said suppliers must obtain criminal history background checks and 'Megan’s Law' checks on all door-to-door agents prior to the agent conducting any door-to-door activity

When a supplier contracts with an independent contractor or vendor to perform door-to-door activities, the supplier is obligated to confirm that the contractor or vendor has performed criminal background investigations on an agent in accordance with the regulations and with the standards set by the supplier, the PUC said

Supplier agents must comply with local ordinances regarding door-to-door marketing and sales activities -- including local permitting requirements, the PUC said

The PUC cautioned Suppliers to avoid practices like the following in written or electronic communication:

• Failing to prominently identify the Supplier that sent the communication.

• Using references to the distribution utility improperly, including using the utility name in a manner that could suggest that the communication is from or sent on behalf of the utility.

• References to the Pennsylvania Public Utility Commission or any other government agency that could suggest that the communication is from or endorsed by the agency.

• Failing to properly identify the purpose of the communication. "We further advise against statements like 'rate discount /refund/rebate notice,' 'utility rate increase notice,' etc.," the PUC said

The PUC said that, "The use of general, unsubstantiated and unqualified claims of environmental benefits, such as 'green' and 'environmentally friendly,' is prohibited."

"Finally, the PUC wishes to emphasize that while a Supplier is free to engage agents, vendors and contractors to perform sales, marketing and other work on its behalf, the PUC will hold the licensed Supplier responsible for the actions of those agents, vendors and contractors," the PUC said

"We urge all Suppliers to immediately perform a comprehensive review of their current and planned residential sales and marketing efforts to ensure that the standards discussed in this Secretarial Letter are complied with," the PUC said

"Failure of a Supplier, or its agents, contractors, vendors, employees or representatives to comply with PUC regulations or orders can result in the imposition of fines and penalties including the suspension or revocation of a Supplier’s license. In addition, we want to remind Suppliers that the Commission has zero tolerance for marketing practices that result in unauthorized switching of customers, i.e. 'slamming,'" the PUC said

The PUC's full letter with additional cautions is available here

Docket L-2010-2208332

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