CUB proposal: Videotape door-to-door electricity pitches!

20160104_Videotape_fbToday, we issued a consumer alert urging people to sign CUB’s petition asking the Illinois Commerce Commission (ICC) to require electricity suppliers to videotape their door-to-door electricity pitches.

More than a year ago, CUB and the City of Chicago asked the ICC to investigate the electricity market, to help weed out misleading marketing. This past September, CUB was happy to hear that the ICC initiated a rulemaking proceeding to beef up consumer protections in Illinois’ electricity market.

The staff of the ICC got the ball rolling, proposing several excellent improvements. Some of the reforms CUB would like to see:

  • Require electricity suppliers to videotape and sound-record their own pitches at a consumers’ doorstep. (Note: The sales rep would be videotaped, not the consumer.) Also, CUB is pushing for all telemarketing pitches to be recorded.
  • Add a general provision to the rules that requires suppliers to provide factual information about their offers.
  • Prohibit unregulated suppliers from using the name and logo of the regulated utility to market their products. (There are unregulated sister companies to the utilities that market their offers in Illinois, and once a company actually purchased the name of a utility to market its product.)
  • Prohibit alternative suppliers from automatically renewing customers. If a customer doesn’t respond to a renewal notice, then he or she would be sent back to the regulated utility, under the proposal. A lot of consumer complain about being switched to a high variable rate after being automatically renewed.
  • Require suppliers to clearly notify customers of a variable rate 30 days before the rate takes effect. Unlike a fixed rate, a variable rate changes on a monthly basis, and CUB has gotten many complaints from consumers who received no warning before getting slammed with extremely high variable rates. CUB also wants to require suppliers to give a separate notice if the variable rate is expected to jump by 20 percent or more.

We’ll continue the fight for a better electricity market, but we need your help. Please sign CUB’s petition today.