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Retail Supplier to Pay $39,000 to Settle Informal Pennsylvania Investigation of Marketing Practices, Complaints IDT Energy, Inc. would pay $39,000 under a settlement with the Pennsylvania PUC's Bureau of Investigation and Enforcement (I&E) to resolve all allegations of slamming and fraudulent, deceptive, or unlawful sales and marketing actions arising under an informal investigation by PUC Staff.
I&E initiated an informal investigation of IDT focusing on:
a. One apparent fraudulent marketing incident by one of the company's independent sales agents, which was self-reported by IDT, and
b. Multiple consumer complaints received by the Commission's Bureau of Consumer Services (BCS) relating to the company's marketing practices for its EGS services in Pennsylvania from 2010 through 2012.
As a result of its investigation, I&E was prepared to allege 39 violations among 21 BCS complaints between 2010 and 2012.
Specifically, I&E was prepared to allege:
• In three instances, the action of an agent or agents of the company failed to comply with the "Standards for Changing a Customer's Electricity Generation Supplier" in that the agent or agents failed to obtain "direct oral confirmation or written authorization from the customer to change the EGS" which resulted in physically switching the electric generation supplier of those accounts without the proper authorization of the consumers or without proper verification. If proven, this would be a violation of 52 Pa. Code § 57.173
• An agent or agents of the company failed to comply with the Electricity Generation Customer Choice and Competition Act, 52 Pa. Code §§ 54.1, et seq., in that the agent or agents engaged in fraudulent, deceptive or otherwise unlawful acts in the process of marketing electric generation supplier services of the company to Pennsylvania consumers. If proven, this would be a violation of Section 52 Pa. Code § 54.43(f)
I&E was also prepared to allege non-compliance with "Do Not Call" provisions of the Telemarketer Registration Act.
IDT Energy stressed in a statement of support for the settlement that, "[t}he Settlement also clearly provides that it makes no factual findings or conclusions of law, nor does it make any finding that IDT violated any provision of the Public Utility Code or Commission regulations."
"These provisions of the Settlement appropriately reflect the fact that this matter has been resolved amicably and without any final adjudication of the issues raised in this proceeding," IDT Energy said.
In addition to the payment described above, IDT Energy has taken various remedial measures to address the complaints, including, in several instances, terminating its relationships with independent agents based on the lack of compliance with IDT's sales and verification protocols.
Additionally, IDT has agreed to:
• Annually send separate correspondence to its customers in Pennsylvania confirming that the customer has selected IDT as the customer's electric generation supplier and that IDT has no affiliation with the customer's public utility. This requirement will remain in effect for two years after the entry of a Commission final order in this matter and may be extended at the discretion of BCS staff.
• IDT will provide BCS staff with all written marketing materials to be used in Pennsylvania for review upon request of staff.
• IDT will provide BCS staff with advance written notice of any plans to engage in door-to-door marketing of consumers for EGS products and services in Pennsylvania. This requirement will remain in effect for one year after the entry of a Commission final order in this matter and may be extended at the discretion of BCS staff.
• IDT will provide BCS staff with a list of independent third-party telemarketers and door-to-door marketers contracted by IDT to engage in marketing of consumers for EGS products and services on its behalf in Pennsylvania.
Docket M-2013-2314312
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Reporting by Paul Ring • ring@energychoicematters.com
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