Code of Massachusetts Regulations
940 CMR - OFFICE OF THE ATTORNEY GENERAL
Title 940 CMR 19.00 - Retail Marketing And Sale Of Electricity
Section 19.05 - Disclosures Required

Universal Citation: 940 MA Code of Regs 940.19

Current through Register 1531, September 27, 2024

(1) It is an unfair or deceptive act or practice for a retail seller of electricity to fail to disclose material information about its products, services, or business, where such failure has the capacity or tendency to deceive or mislead a reasonable consumer, or has the effect of deceiving or misleading such a consumer, in any material respect.

(2) It is an unfair or deceptive act or practice for a retail seller of electricity to fail to disclose to a consumer any material fact the disclosure of which may have influenced a reasonable consumer not to enter into a transaction.

(3) Except with respect to default generation service, in which case information shall be provided in accordance with 220 CMR l 1.06(3) and (4), it is an unfair or deceptive act or practice for a retail seller of competitive generation service to initiate service to a consumer, or to provide any product or service to a consumer, or in any way obligate a consumer to accept or pay for any product or service, unless and until the retail seller of electricity has provided the consumer with the following information, in writing, in no less than ten point type for textual material and eight point type for footnotes, and in print that contrasts clearly with the material on which it is printed, and the consumer has affirmatively chosen the product or service:

(a) The retail seller of electricity's complete business name, business address, toll-free business telephone number, and license number issued by the Department.

(b) Complete, accurate pricing information, including materials demonstrating the relationship between usage levels or information specific to the consumer's actual electricity usage history; a definition and a complete explanation of each and every charge that the retail seller may bill to a consumer; an explanation of any applicable restriction, geographic or otherwise, on the actual availability of any price to a consumer; and the precise dates on which any offered price is available and ends, where appropriate.

(c) For consumers that are presently on the standard offer generation service, the retail seller of electricity shall disclose:
1. the availability to the consumer, whenever needed, of default generation service.

2. any differences in the time periods over which the price(s) offered by the seller is (are) fixed as compared to the terms governing standard offer generation service.

3. that it makes no representations beyond the expiration date of its contracted price as compared to the standard offer generation service.

4. that the service that the customer is currently receiving is the standard offer generation service, with a full explanation of the conditions under which the customer may or may not return to standard offer generation service if the customer decides to purchase from the retail seller of electricity and thereafter should wish to return to the standard offer generation service or, alternatively, shall provide the following notice as part of the information which must be disclosed prior to the initiation of service:

NOTICE TO CUSTOMERS ON STANDARD OFFER GENERATION SERVICE

"Be aware that the service you are currently receiving from your distribution company is "standard offer generation service, " the rate for which has been approved by the Department of Telecommunications and Energy and which, subject to adjustment for potential developments such as inflation, must result in a 10% discount from the rate in effect during August 1997. You may remain on this service until the end of February 2005. Should you choose to receive service from a competitive supplier rather than your distribution company prior to February 2005, you will not be eligible to return to standard offer generation service unless you qualify as a low-income customer or you have notified your distribution company, prior to February 28, 1999 and within 120 days (180 days if you are receiving service through a public aggregator) of when you first received competitive service, of your desire to return to standard offer generation service."

(d) A complete explanation of any applicable connection, re-connection or termination procedures or fees, including, but not limited to, entry or re-entry fees, off-cycle meter reading fees, exit fees, or early cancellation fees or penalties; any fee charged by a distribution company when a consumer changes to another retail seller of electricity; any fee prescribed by the Department; and any other fee that may be charged to a consumer and which is required to be disclosed pursuant to M.G.L. c. 164, § IF(5)(I).

(e) A complete explanation of the terms on which credit may be extended to a consumer, and of any permissible deposit requirements.

(f) A complete description and explanation of any product or service being provided in connection with the purchase of electricity from the retail seller of electricity.

(g) The period of time for which any agreement will obligate the consumer to accept and pay for any product or service from the retail seller of electricity.

(h) The three-day right of the consumer to rescind its decision to purchase from the retail seller of electricity provided by M.G.L. c. 164, § 1F(8)(a)(v).

(4) Where more than one retail seller of electricity is involved in the marketing and/or sale of a particular competitive generation service to a particular consumer, each such individual retail seller shall not be required to individually provide the disclosure required by 940 CMR 19.05(4) so long as the disclosure provided by at least one of the retail sellers satisfies the requirements of 940 CMR 19.05(4); provided that, irrespective of any agreement to the contrary, each such retail seller will continue to be responsible, jointly and severally, for compliance with 940 CMR 19.00.

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