|
|
|
|
|
Retail Supplier to Pay $59,000 to Settle Alleged Slamming, Marketing Violations
ResCom Energy LLC would pay $59,000 under a settlement with the Pennsylvania PUC's Bureau of Investigation and Enforcement (I&E) to resolve an investigation into alleged slamming, Do Not Call violations, and other marketing violations.
An I&E investigation had centered on allegations of slamming and related unauthorized marketing practices received in 2012 from multiple sources, including consumer complaints received by the Commission's Bureau of Consumer Services (BCS), reports from two electric distribution companies (EDCs), other EGSs, and other direct consumer contacts with Commission Staff.
In July 2012, the Commission either received or was made aware of complaints regarding an entity or entities calling consumers for the purpose of making EGS sales calls but failing to identify themselves. Similar allegations were reported to the Commission's Office of Competitive Market Oversight from multiple EDCs indicating that customers were being called by entities that were falsely representing that they were associated with the EDC. "These EDCs reported that they became concerned with ResCom due to its high rescission rate in their respective service areas and had received calls from customers who specifically identified ResCom/Positive Energy as the source of the problematic sales calls," the settlement states.
On July 9 and 10, 2012, ResCom received non-Commission complaints regarding calls that were made with Caller ID numbers that were not recognized by ResCom. ResCom initiated an investigation and contacted its third party vendor call centers.
On July 10, 2012, another EGS, Energy Cooperative Association of Pennsylvania (ECAP), reported to the Commission that its call center had received reports from customers claiming to have been contacted by a supplier claiming to be associated with either ECAP or the EDC, PECO. "Some of these ECAP customers specifically identified ResCom/Positive Energy as the source of the problematic sales calls," the settlement states.
On July 12, 2012, ResCom received an additional non-Commission complaint regarding a possible "Do Not Call" violation. "As a result of its internal investigation ResCom learned over the course of the next several days that its third-party vendor, Energy Group Sales, was the indirect source of the calls in question. ResCom discovered that Energy Group Sales, unbeknownst to ResCom, had been making sales calls on behalf of ResCom through the use of call centers subcontracted by Energy Group Sales that had neither been authorized by ResCom nor received the training ResCom requires of all call centers operating on its behalf," the settlement states.
On July 19, 2012, ResCom terminated its business relationship with Energy Group Sales.
On April 12, 2013, the BCS was contacted by an individual who identified himself as a former sales agent at a "Consumer Energy Partners" call center. "The individual claimed that the call center was contracted by ResCom to call Pennsylvania consumers in the PPL and PECO residential markets and that call center agents, acting on behalf of ResCom, called consumers whose telephone numbers were obtained from telephone directories and were not screened to omit telephone numbers of consumers on federal and state 'Do Not Call' lists," the settlement states.
On May 24, 2013, ResCom terminated its business relationship with Consumer Energy Partners.
I&E Staff had been prepared to allege that:
• ResCom or an agent or agents of the company failed to obtain direct oral confirmation or written authorization from the customer to change the EGS in the process of switching the electric generation supplier on "multiple" consumer accounts which resulted in physically switching the electric generation supplier of those accounts without the proper authorization of the consumers or without proper verification.
• ResCom or an agent or agents of the company, "engaged in fraudulent, deceptive or otherwise unlawful acts in the process of marketing electric generation supplier services of the Company to Pennsylvania consumers."
• ResCom or an agent or agents of the company failed to comply with the "Do Not Call" provision of the Telemarketer Registration Act, 73 P.S. §§ 2241, et seq.
ResCom entered into a settlement with I&E and will pay a civil settlement amount of $59,000 to resolve all allegations of slamming and related unauthorized actions, including, without limitations, allegations of violations of the "Do Not Call" prohibitions occurring in 2012 and in 2013 up to the execution of the settlement agreement.
The settlement notes various remedial measures taken by ResCom as well, including better ResCom identification and script improvements; caller IDs and extended customer service hours; improved Do Not Call list procedures; and additional training.
In a statement accompanying the settlement, ResCom said:
"ResCom and Positive Energy [ResCom's exclusive marketing partner responsible for enrolling customers for ResCom] worked swiftly and diligently to (i) try to ensure that Pennsylvania customer rights have been protected by terminating business relationships with those marketing companies responsible for violations of the Public Utility Code. For example, Positive Energy terminated the relationship with Energy Group Sales on July 19, 2012 (see paragraphs 14 through 17 of the Settlement), 10 days after it received its first complaints concerning marketing irregularities and as soon as Positive Energy's internal investigation identified Energy Group Sales as having been responsible for the complaints. Similarly, on May 24, 2013, Positive Energy terminated the relationship with Consumer Energy Partners, the marketer identified by Positive Energy's internal investigation as the marketer responsible for the April 2013 'Do Not Call' list issues. That termination was effected well before BCS or I&E contacted ResCom about the problem (see paragraphs 20 through 23 of the Settlement). In addition, Positive Energy has, at ResCom's insistence and with its support, voluntarily changed the internal procedures and policies in regards to selection and training of marketing companies to avoid recurrence of these kinds of situations. ResCom has shown that it has taken both aggressive and proactive steps in ensuring that all Public Utility Codes and customer protection rules are strictly followed. The changes to Positive Energy's procedures are designed to improve the quality of service to ResCom's customers, to protect consumers, and are in the public interest."
Docket M-2013-2320112
ADVERTISEMENT Search for more retail energy careers: Copyright 2010-
December 4, 2013
Email This Story
Copyright 2010-13 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
NEW Jobs on RetailEnergyJobs.com:
• NEW! -- Chief Financial Officer -- Retail Supplier
• NEW! -- Commercial Energy Advisor -- DFW or Houston
• NEW! -- Energy Advisor -- PA, NY, Various
• Director of Sales/Marketing -- Retail Supplier
• Director of Supplier Accounts -- DFW or Houston
• Power Settlements Analyst -- Retail Provider
RetailEnergyJobs.com
|
|
|
|