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Connecticut Bill Requiring Affirmative Consent For Renewals Advances; Must Record Entire Sales Pitch

April 03,2019



A joint energy committee of the Connecticut legislature has reported favorably a substitute for H.B. No. 7155

The revised H.B. No. 7155 provides as follows:

"Telesales call" means any communication using a telephonic device, including, but not limited to, land telephone lines and cellular telephone lines, in which the purpose of the communication is to inform a customer or potential customer about a product offering, engage a customer or potential customer in a conversation that may result in entering into a contract for services or discuss current or future contract terms with a customer or potential customer.

The bill provides that each electric supplier shall record the entirety of all telesales calls with a potential residential customer, including, but not limited to, all attempted and consummated sales, and retain such telesales call recordings for two years after the date such recording was made.

Each electric supplier shall record the entirety of all face-to-face marketing interactions with a potential residential customer, including, but not limited to, all attempted and consummated sales, and retain such recordings for two years after the date such recording was made, the bill provides

Each electric supplier shall conduct criminal background checks on all door-to-door marketers prior to such marketer conducting marketing on behalf of the electric supplier. Each electric supplier shall conduct such criminal background checks at least once each year on all marketers conducting door-to-door marketing on behalf of the electric supplier, the bill provides

When conducting telesales calls or face-to-face marketing, each electric supplier shall begin by immediately stating: (A) The name of the electric supplier conducting the call; (B) that the electric supplier is not affiliated with any state program and no state program encourages Connecticut residents to obtain an electric supplier; (C) that the electric supplier is calling the residential customer or potential residential customer to market or sell electric supply service to the residential customer or potential residential customer and if the residential customer or potential residential customer assents, the telesales call or face-to-face marketing will result in the residential customer or potential residential customer immediately entering into a contract with the electric supplier; (D) that such electric supplier does not represent an electric distribution company and that electric distribution companies do not encourage Connecticut residents to obtain an electric supplier; and (E) what the standard service rate is on the date of the telesales call or face-to-face marketing and that the standard service rate is fixed, not variable, the bill provides

The bill provides that, when conducting telesales calls or face-to-face marketing, no electric supplier may request the account information from a potential residential customer or request that a potential residential customer retrieve account information or the potential residential customer's electric distribution company bill prior to the residential customer or potential residential customer affirmatively assenting to contract with the electric supplier for a specified rate

The bill provides that each electric supplier shall terminate any telesales call when a residential customer or potential residential customer connects with the third-party verification as described in subsection (b) of section 16-245s of the general statutes and may not remain on the telephone line while the residential customer or potential residential customer participates in the third-party verification

Each electric supplier shall process a residential customer's enrollment or re-enrollment and submit such enrollment to the electric distribution company within five calendar days of the residential customer consenting to enroll. Enrollments processed and sent to the electric distribution company after five calendar days shall be considered invalid enrollments, the bill provides

The bill provides that no supplier license may be transferred or customers assigned or transferred without the prior approval of the authority. The authority may assess additional licensing fees to pay the administrative costs of reviewing a request for such transfer

Regarding renewals, the bill provides that the contract may only be renewed if the residential customer affirmatively and expressly consents to the renewal by providing either a written or electronic signature, provided no fee pursuant to subdivision (7) of this subsection [termination fee] shall be charged to a residential customer who terminates or cancels such renewal within the first two billing cycles of the renewed contract. If the residential customer does not affirmatively and expressly consent to the renewal by providing either a written or electronic signature, the residential customer shall be placed on the standard service provided pursuant to section 16-244c at the expiration of the residential customer's current contract with an electric supplier for the provision of electric generation services.

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Connecticut   Sales & Marketing  

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