Pending the outcome of formal rulemaking proceedings to enhance consumer protection, the New Jersey BPU has directed retail suppliers to immediately begin using a "plain language" contract template developed by the Board.

The BPU ordered all suppliers serving residential customers to complete a Third Party Supplier (TPS) Contract Summary for each residential customer that they sign up or renew for service on or after November 15, 2014.

The Contract Summary addresses pricing, type of product (fixed/variable), a conspicuous statement informing the customer that the TPS rate may not always provide savings (unless guaranteed otherwise), early termination fees

If the rate is variable the TPS must, "state whether or not there are any applicable ranges/ceilings." (emphasis added).

See Page 7 of the BPU's order for the Contract Summary.

The TPSs shall conspicuously display the completed TPS Contract Summary at the front of the proposed residential customer's contract, and provide it to the customer when the customer signs up for service or contracts for a renewal of service, using the delivery method selected by the customer.

The BPU directed that each TPS serving residential customers shall fill out the attached TPS Contract Summary as follows:

1. The TPS shall fill out the Contract Summary using plain language.

2. The TPS shall fill out the Contract Summary with a font size no smaller than 12 point.

3. The TPS shall fill out the sheet in a manner that it will fit on a single 8.5" x 11" page.

4. The TPS shall list the customer's name, address, and local distribution company account number at the top of the Contract Summary as shown.

5. The TPS shall utilize all of the exact headings shown in the boxes on the left side of the Contract Summary, except that the first box shall use the word "electric" or "gas" as appropriate instead of "electric/gas."

6. The TPS shall put the appropriate information in all of the boxes on the right side of the Contract Summary based upon the instructions shown in the boxes on the right side of the Contract Summary.

7. The TPS shall use gas or electric terminology as appropriate when filling out the sheet.

Tags:
New Jersey   Consumer Protection   Sales & Marketing  

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