Retail Supplier Seeks Reinstatement of Eligibility to Market Door-to-Door

Liberty Power Holdings LLC petitioned the New York PSC to reinstate its eligibility to engage in door-to-door marketing, arguing that a new sales compliance program warrants reinstatement.

Liberty Power Holdings LLC said that the "Best in Class" sales compliance program was introduced in Illinois and other states starting in June 2013, with one vendor partner and five field sales agents. Since then, the program has expanded into three markets, with 6 vendor partners and close to 50 field sales agents. To date, Liberty Power said that it has contracted with approximately 700 customers under the program and has received no complaints related to field sales activities.

Notable features of the sales compliance program include:

• Channel (Vendor) Review Board: In June 2013, Liberty Power created a Vendor Review Board, comprised of representatives from the Quality Assurance, Training, Finance, Legal and Regulatory, and Sales Departments responsible for the approval and monitoring of all telesales and field sales third-party vendors. Every vendor is reviewed prior to onboarding to identify any disparities and determine the vendor's commitment to the Liberty Power Sales Quality Program. Each vendor is also evaluated at least once a year, and can be reviewed by the Board at any time a customer satisfaction issue arises.

• Zero Tolerance Policy - All field sales agents are required to sign and adhere to the company's Zero Tolerance Policy (adopted in June 2013). The document sets forth the consequences for non-compliance which include:

a. Vendor or field sales agent suspension/termination upon the violation of Liberty Power regulatory compliance policies

b. Field Sales agent retraining requirements

c. Chargeback or non-payment of related commissions

• Third Party Quality Check: All residential contracts must also be accompanied by a Third Party Quality Check which will require the customer to answer a series of questions regarding the sale and conduct of the agent. The Third Party Quality Check will occur immediately following the execution of the contract by an independent company retained by Liberty Power. The field sales agent will call the independent third party from their phone, and then, to ensure that the field sales agent is beyond earshot so that the customer feels free to speak candidly, the sales agent must walk a distance of 30 feet away, such as either to the street or the end of the hallway if in a building (and will be confirmed with the first question of the Third Party Quality Check).

• Agent Branding: Field sales agents selling products for Liberty Power are now required to wear at least one Liberty Power branded item, such as a polo shirt or pin, and an "I am NOT with your local utility" pin

The Liberty Power sales compliance program also includes:

• Field Sales Agent Code of Conduct

• Channel Partner (i.e., Vendor) Agreement

• Agent Background Checks

• Direct Agent Training

• Monthly Training Refresher Courses

• Increased Field Sales Quality Assurance Monitoring

• Sales Interaction Recording