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Consumer Protections Regarding ESCO Marketing | |
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The CPB is taking action to stop overly aggressive and questionable marketing practices preformed by certain energy services companies
(ESCOs) throughout New York State, particularly in New York City and Western New York. These companies provide electricity and natural
gas services at prices and under terms and conditions that are generally not regulated, as alternatives to what is available from
regulated utilities such as Consolidated Edison and National Grid.
The CPB and other State agencies have received a large number of complaints concerning misleading and aggressive marketing practices, particularly resulting from door-to-door and telemarketing sales. We are concerned that the marketing activities of some of these ESCOs do not clearly identify the name of the company that will actually provide the service, the price of the service and other issues of critical importance to consumers. Further, too often, it appears that representatives of these ESCOs target their marketing efforts at some of the most vulnerable consumers, including those for whom English is not the primary language, those in low-income communities and the elderly. To address this situation, the CPB and the New York City Department of Consumer Affairs (DCA) submitted a formal Petition to the New York Public Service Commission on December 19, 2007. We requested that the PSC establish mandatory and enforceable requirements governing marketing practices, to help protect consumers. For example, we proposed that ESCOs and their representatives provide a photo identification and corporate contact information to customers upon contact and that they clearly explain that they are not associated with the regulated utility. We also recommended that in circumstances where marketing is conducted to individuals whose primary language is not English the information provided be in the consumer’s primary language. In addition, we also called for the imposition of penalties against ESCOs that do not abide by these rules. The PSC is expected to address our request in the Spring. CPB/DCA Petition to the PSC Regarding Marketing Practices of ESCOs CPB’s Consumer Tips Regarding Marketing Conducted by ESCOs New York State and City Consumer Protection Agencies Call For Improved Marketing Standards for ESCOs NYS Consumer Protection Board Spotlights ESCO Marketing Practices at 2008 Top Frauds Conference | |
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