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NY State Agency: Long-Term Financial "Consequences" Of ESCO Contracts Require TPV-ing All Sales
Requiring independent third party verification of all mass market ESCO sales, including mailers and internet sales, is needed as such contracts may include, "long term financial consequences," the Utility Intervention Unit (UIU) of the New York State Department of State’s Division of Consumer Protection said in comments to the New York PSC
As was first reported by EnergyChoiceMatters.com, the New York PSC has proposed changes to the Uniform Business Practices to require all ESCO mass market sales be subject to an independent TPV (internet, mailer, etc.)
The Retail Energy Supply Association had said in comments that the proposed extension of the TPV requirement to all mass market sales is, "overly burdensome on both the customers and the ESCOs and is a dramatic departure from recent trends in consumer buying behaviors."
"Today we live in a world where consumers value speed and ease when transacting. Amazon’s surge in popularity is a perfect example of this trend with their next day and in some cases even same day delivery service," RESA said
However, the UIU contrasted customers' seamless purchase of "routine products that do not require a long term financial commitment," with ESCO contracts
"Consumers are often requested to agree to terms and services when responding to a direct mailer or purchasing a product through the internet. Many times the attestation is done in haste for routine products that do not require a long term financial commitment. However, consumers agreeing to a contract with an ESCO are agreeing to terms that may have long term financial consequences. Therefore, TPV for all ESCO enrollment provides the consumer an opportunity to hear and agree to the terms. This should help ensure that the consumer understood the contract," the UIU said.
RESA, however, noted in its comments that many customers purposely engage in people-less and paperless transactions when buying cell phones and even cars -- products which may similarly include long-term financial commitments.
"Customers purchasing ESCOs’ products are the same customers shopping on-line. Many enjoy the convenience and simplicity of engaging with their ESCO (or any product or service provider) without requiring human interaction. The same logic would apply to someone responding to a mailed solicitation. The response is fully voluntary and requires an affirmative action from the customer. A call a few days later to verify the action is confusing to the customer and might not be feasible given peoples’ work and travel schedules (which could have been the primary driver behind the on-line transaction or mailed-in response in the first place)," RESA said
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May 16, 2017
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Copyright 2010-17 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
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