Regulator Proposes to Require Background Checks for Door-to-Door Agents; Suppliers Must File Door-to-Door Marketing Plans, Weekly Complaint Reports

The Massachusetts DPU, as part of a wide-ranging proceeding to update a host of retail electric market provisions, proposes that competitive suppliers who intend to market door-to-door to residential customers be required to provide notice to the Department prior to initiating a door-to-door campaign, and keep the Department apprised of any customer complaints received during the marketing campaign.

Notably, the DPU would require background checks for door-to-door agents, "consistent with accepted business practice."

"The Department’s concern is due to the face-to-face nature of door-to-door marketing, resulting in customers’ feeling pressure to make immediate purchasing decisions. In addition, the Department has received complaints from town officials regarding certain door-to-door marketing activities," the DPU said.

The Department proposes that the competitive supplier must file a Notice of Door-to-Door Marketing with the Department no later than seven days prior to the start of the campaign.

The competitive supplier must include the following information in the Notice of Door-to-Door Marketing:

1. The names of each city and town in which the door-to-door marketing will occur, and the dates on which the marketing campaign will begin and end;

2. A list of all permits and licenses required by each identified city and town to conduct door-to-door marketing;

3. Certification that the competitive supplier has obtained the required permits and licenses;

4. If the competitive supplier cannot obtain the permits and licenses at the time it files the Notice of Door-to-Door Marketing, the competitive supplier must provide (1) the reason(s) why it presently is unable to obtain the permits and licenses, (2) the date(s) on which it intends to obtain the permits and licenses, and (3) a statement certifying that it will obtain such permits and licenses prior to starting its marketing campaign;

5. The number of people that will be conducting door-to-door marketing;

6. Certification that the competitive supplier has conducted a background check, consistent with accepted business practice, for each person who will be conducting door-to-door marketing; and

7. Contact information (including nights and weekends) for the person who is overseeing the door-to-door marketing campaign.

Suppliers would also be required to provide a copy of the Notice of Door-to-Door Marketing to each city and town in which the door-to-door marketing will occur.

The Department also proposes that on a weekly basis, throughout the course of the door-to-door marketing campaign, the competitive supplier submit to the Department customer complaint data related to the door-to-door marketing campaign.

D.P.U. 14-140

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