Rules and Regulations for Fair Energy Marketing

To better provide you with a sense of security when enrolling with an electricity and natural gas marketer/retailer, we have outlined the regulated procedures for registering new consumers, and soliciting door to door sales. This article outlines the rules and regulations for energy marketer/retailers in Ontario, to better protect you and your natural gas and electricity bill from marketing scams. This article provides a number of warning signs to help you identify unfair sales practices before signing up to a contract with hidden conditions.

Fair Energy Marketing Practices

The rules and regulations are considered fair sales practices that each and every energy marketer/retailer should abide by when soliciting door to door sales. These guidelines are explained in detail in the Code of Conduct which is regulated by the Ontario Energy Board. This code describes exactly what every sales representative ought to do in order to honestly solicit home and commercial sales in Ontario.

Speak to a Legitimate Home or Business Owner

Sales representatives are told to exercise caution when soliciting home or commercial sales, and should make sure that they are consulting with a legitimate account holder before advancing with any sales presentations.

Who is Qualified to Sign?

Whether the contract is for a brand new fixed price agreement, a renewal or the extension of a pre-existing contract, the contract has to be signed by an appropriate signing authority. Energy marketer/retailers are also advised to use caution when selling to anyone who may have a language barrier, are over 70 years of age or under the age of 18, and does not clearly grasp the Terms and Conditions of the contract.

In residential cases, contracts should always be signed by the account holder, the account holder's spouse or the account holder's common law partner in order to be considered valid.

In commercial selling, contracts have to be signed by the business owner or a representative with permission to enter into contracts with respect to the business.

Provide a Business Card

Sales representatives should always offer every consumer a business card upon arrival. Standards for the business card consist of; the sales representatives name, Ontario Energy Board licence number, the energy marketer/retailer's name and address, toll-free telephone number and website address.

Provide Business and Product Material

Sales representatives should always supply accurate business and product information. They are required to mention to the consumer, that the business they represent is offering a fixed pricing agreement for the supply of natural gas and/or electricity and express that they are not the consumer's utility. Sales representatives are also instructed to inform consumers that they are not affiliated with the Ontario Energy Board or the Government.

Communicate Pricing and Contract Terms and Conditions

Sales representatives need to indicate the rate to be paid per unit under the contract as well as, the terms and conditions of the contract. At this time account holders should have the opportunity to read the contract and examine the terms and conditions, price comparison form and disclosure statement.

Don't Pressure the Consumer

When implementing door to door sales, sales representatives are to abstain from exerting stress on an account holder and are required to permit consumers the chance to look at all paperwork presented before making a decision to sign.

Provide Updated Sales Material

All sales content supplied is required to contain accurate, factual information that will not mislead the consumer, and in addition offer current pricing, an up-to-date disclosure statement, price comparison form and the contract's terms and conditions.

Be Truthful and Consistent with Communication

Sales representatives should always be consistent with all information and facts communicated to the account holder. Inaccurate information or a deceptive portrayal of the products and services offered are considered inappropriate sales tactics and a sales representative's compliance with the code of conduct is imperative.

Display a Legitimate Identification Badge

Every sales representative is provided with an energy marketer/retailer identification badge that should be displayed on external clothing making it recognizable to consumers. The representative's badge is required to contain the sales representatives identify, in addition to photo identification, the marketer/retailer business name, a valid identification number, and the badge expiration date.

Signing a Contract

When opting into to a brand new contract, be certain to request a copy of all sales material, prior to the sales representative exiting. Make sure you have been supplied with the following paperwork;

A signed and dated copy of your contract

A signed and dated disclosure statement for natural gas and/or electricity

A signed and dated price comparison form for natural gas and/or electricity

The energy marketer/retailer's Terms and Conditions

The sales representative's company card

After enrolling with the energy marketer/retailer you should receive a hard copy of any sales document on the spot. Among these sales materials you should have; the contract, price comparison form, contract terms and conditions, disclosure statements and any additional product information available.

3rd Party Affirmation Call

A call center representative will contact the account holder and approve the contract after the 10 day cooling off period, end date. The affirmation call permits the account holder the chance to have any information clarified and questions answered. The affirmation call is digitally recorded, and is initiated as an outbound call from the energy marketer/retailer.

The affirmation call describes the product(s) and service(s) purchased, contract pricing, and the terms and conditions of the contract through several Ontario Energy Board regulated questions. The energy marketer/retailer will keep this affirmation call on file for the course of the contract. Account holders should be able to request a digital copy of the affirmation call throughout the duration of their contract if desired.

10 Day Cooling Period

Under the Energy Consumers Protection Act 2011, otherwise known as the rules and regulations for selling to a consumer, a 10 day cooling off time period is allocated to provide account holders a time line during which they have the option to cancel their contract. Under the Energy Consumers Protection Act, consumers have the opportunity to terminate their contract cost-free, and without penalty, up to 10 days once the account holder has recognized receipt of a text-based copy of the contract.

When You Initiate the Sale

The affirmation call is not mandatory if the contract was entered into over the internet or if the account holder replied to an energy marketer/retailer's direct mail advertising campaign.

Signs of Unfair Sales Practices

Any phony, misguiding or fraudulent statements made to the consumer this includes; The terms and conditions of the agreement. Example: Leaving out significant details about; the contract length, termination of contract, renewal policies, crucial dates, extra charges, etc.

Information regarding the quality or characteristics of the energy source and/or products supplied. Example: Stating that they will provide you with green energy when they don't.

The track record of an energy marketer/retailer, or the businesses association with an alternative electricity supplier or gas marketer. Example: Misleading statements which include misrepresentation, pretending to be from the utility or the government.

The contract pricing and any extra fees are required to be clearly stated in the contract.Example: Not telling consumers that the contract rates will only come into play in the event that the utility cost surpasses the energy marketer/retailer.

Taking an unconscionable action on the part of the account holder. Example: When a sales representative has unfairly exploited an account holder who might not fully grasp the agreement terms and conditions, has a language barrier, elderly, disabled or pressured into entering into onto a contract.

Failure to communicate specifics details on products, services, or the energy marketer/retailer's business. Example: Leaving the account holder with the perception that the sales representative is associated with or represents a local utility, the government or Ontario Energy Board.

Permitting an unqualified individual to sign into a new contract/renew or extend the length of a contract when the individual is not the account holder or an appropriate signing authority for the home or business.