(815 ILCS 505/2DDD)
Sec. 2DDD. Alternative gas suppliers.
(a) Definitions.
(1) "Alternative gas supplier" has the same meaning
as in Section 19-105 of the Public Utilities Act.
(2) "Gas utility" has the same meaning as in Section
19-105 of the Public Utilities Act.
(b) It is an unfair or deceptive act or practice within the meaning of Section 2 of this Act for any person to violate any provision of this Section.
(c) Solicitation.
(1) An alternative gas supplier shall not
misrepresent the affiliation of any alternative supplier with the gas utility, governmental bodies, or consumer groups.
(2) If any sales solicitation, agreement, contract,
or verification is translated into another language and provided to a customer, all of the documents must be provided to the customer in that other language.
(3) An alternative gas supplier shall clearly and
conspicuously disclose the following information to all customers:
(A) the prices, terms, and conditions of the
products and services being sold to the customer;
(B) where the solicitation occurs in person,
including through door-to-door solicitation, the salesperson's name;
(C) the alternative gas supplier's contact
information, including the address, phone number, and website;
(D) contact information for the Illinois Commerce
Commission, including the toll-free number for consumer complaints and website;
(E) a statement of the customer's right to
rescind the offer within 10 business days of the date on the utility's notice confirming the customer's decision to switch suppliers, as well as phone numbers for the supplier and utility that the consumer may use to rescind the contract; and
(F) the amount of the early termination fee, if
any.
(4) Except as provided in paragraph (5) of this
subsection (c), an alternative gas supplier shall send the information described in paragraph (3) of this subsection (c) to all customers within one business day of the authorization of a switch.
(5) An alternative gas supplier engaging in
door-to-door solicitation of consumers shall provide the information described in paragraph (3) of this subsection (c) during all door-to-door solicitations that result in a customer deciding to switch their supplier.
(d) Customer Authorization. An alternative gas supplier shall not submit or execute a change in a customer's selection of a natural gas provider unless and until (i) the alternative gas supplier first discloses all material terms and conditions of the offer to the customer; (ii) the alternative gas supplier has obtained the customer's express agreement to accept the offer after the disclosure of all material terms and conditions of the offer; and (iii) the alternative gas supplier has confirmed the request for a change in accordance with one of the following procedures:
(1) The alternative gas supplier has obtained the
customer's written or electronically signed authorization in a form that meets the following requirements:
(A) An alternative gas supplier shall obtain any
necessary written or electronically signed authorization from a customer for a change in natural gas service by using a letter of agency as specified in this Section. Any letter of agency that does not conform with this Section is invalid.
(B) The letter of agency shall be a separate
document (or an easily separable document containing only the authorization language described in item (E) of this paragraph (1)) whose sole purpose is to authorize a natural gas provider change. The letter of agency must be signed and dated by the customer requesting the natural gas provider change.
(C) The letter of agency shall not be combined
with inducements of any kind on the same document.
(D) Notwithstanding items (A) and (B) of this
paragraph (1), the letter of agency may be combined with checks that contain only the required letter of agency language prescribed in item (E) of this paragraph (1) and the necessary information to make the check a negotiable instrument. The letter of agency check shall not contain any promotional language or material. The letter of agency check shall contain in easily readable, bold face type on the face of the check, a notice that the consumer is authorizing a natural gas provider change by signing the check. The letter of agency language also shall be placed near the signature line on the back of the check.
(E) At a minimum, the letter of agency must be
printed with a print of sufficient size to be clearly legible, and must contain clear and unambiguous language that confirms:
(i) the customer's billing name and address;
(ii) the decision to change the natural gas
provider from the current provider to the prospective alternative gas supplier;
(iii) the terms, conditions, and nature of
the service to be provided to the customer, including, but not limited to, the rates for the service contracted for by the customer; and
(iv) that the customer understands that any
natural gas provider selection the customer chooses may involve a charge to the customer for changing the customer's natural gas provider.
(F) Letters of agency shall not suggest or
require that a customer take some action in order to retain the customer's current natural gas provider.
(G) If any portion of a letter of agency is
translated into another language, then all portions of the letter of agency must be translated into that language.
(2) An appropriately qualified independent third
party has obtained, in accordance with the procedures set forth in this paragraph (2), the customer's oral authorization to change natural gas providers that confirms and includes appropriate verification data. The independent third party must (i) not be owned, managed, controlled, or directed by the alternative gas supplier or the alternative gas supplier's marketing agent; (ii) not have any financial incentive to confirm provider change requests for the alternative gas supplier or the alternative gas supplier's marketing agent; and (iii) operate in a location physically separate from the alternative gas supplier or the alternative gas supplier's marketing agent. Automated third-party verification systems and 3-way conference calls may be used for verification purposes so long as the other requirements of this paragraph (2) are satisfied. A alternative gas supplier or alternative gas supplier's sales representative initiating a 3-way conference call or a call through an automated verification system must drop off the call once the 3-way connection has been established. All third-party verification methods shall elicit, at a minimum, the following information:
(A) the identity of the customer;
(B) confirmation that the person on the call is
authorized to make the provider change;
(C) confirmation that the person on the call
wants to make the provider change;
(D) the names of the providers affected by the
change;
(E) the service address of the service to be
switched; and
(F) the price of the service to be provided and
the material terms and conditions of the service being offered, including whether any early termination fees apply.
Third-party verifiers may not market the alternative
gas supplier's services. All third-party verifications shall be conducted in the same language that was used in the underlying sales transaction and shall be recorded in their entirety. Submitting alternative gas suppliers shall maintain and preserve audio records of verification of customer authorization for a minimum period of 2 years after obtaining the verification. Automated systems must provide customers with an option to speak with a live person at any time during the call.
(3) The alternative gas supplier has obtained the
customer's electronic authorization to change natural gas service via telephone. Such authorization must elicit the information in paragraph (2)(A) through (F) of this subsection (d). Alternative gas suppliers electing to confirm sales electronically shall establish one or more toll-free telephone numbers exclusively for that purpose. Calls to the number or numbers shall connect a customer to a voice response unit, or similar mechanism, that makes a date-stamped, time-stamped recording of the required information regarding the alternative gas supplier change.
The alternative gas supplier shall not use such
electronic authorization systems to market its services.
(4) When a consumer initiates the call to the
prospective alternative gas supplier, in order to enroll the consumer as a customer, the prospective alternative gas supplier must, with the consent of the customer, make a date-stamped, time-stamped audio recording that elicits, at a minimum, the following information:
(A) the identity of the customer;
(B) confirmation that the person on the call is
authorized to make the provider change;
(C) confirmation that the person on the call
wants to make the provider change;
(D) the names of the providers affected by the
change;
(E) the service address of the service to be
switched; and
(F) the price of the service to be supplied and
the material terms and conditions of the service being offered, including whether any early termination fees apply.
Submitting alternative gas suppliers shall maintain
and preserve the audio records containing the information set forth above for a minimum period of 2 years.
(5) In the event that a customer enrolls for service
from an alternative gas supplier via an Internet website, the alternative gas supplier shall obtain an electronically signed letter of agency in accordance with paragraph (1) of this subsection (d) and any customer information shall be protected in accordance with all applicable statutes and rules. In addition, an alternative gas supplier shall provide the following when marketing via an Internet website:
(A) The Internet enrollment website shall, at a
minimum, include:
(i) a copy of the alternative gas supplier's
customer contract, which clearly and conspicuously discloses all terms and conditions; and
(ii) a conspicuous prompt for the customer to
print or save a copy of the contract.
(B) Any electronic version of the contract shall
be identified by version number, in order to ensure the ability to verify the particular contract to which the customer assents.
(C) Throughout the duration of the alternative
gas supplier's contract with a customer, the alternative gas supplier shall retain and, within 3 business days of the customer's request, provide to the customer an e-mail, paper, or facsimile of the terms and conditions of the numbered contract version to which the customer assents.
(D) The alternative gas supplier shall provide a
mechanism by which both the submission and receipt of the electronic letter of agency are recorded by time and date.
(E) After the customer completes the electronic
letter of agency, the alternative gas supplier shall disclose conspicuously through its website that the customer has been enrolled and the alternative gas supplier shall provide the customer an enrollment confirmation number.
(6) When a customer is solicited in person by the
alternative gas supplier's sales agent, the alternative gas supplier may only obtain the customer's authorization to change natural gas service through the method provided for in paragraph (2) of this subsection (d).
Alternative gas suppliers must be in compliance with the provisions of this subsection (d) within 90 days after the effective date of this amendatory Act of the 95th General Assembly.
(e) Early Termination.
(1) Any agreement that contains an early termination
clause shall disclose the amount of the early termination fee, provided that any early termination fee or penalty shall not exceed $50 total, regardless of whether or not the agreement is a multiyear agreement.
(2) In any agreement that contains an early
termination clause, an alternative gas supplier shall provide the customer the opportunity to terminate the agreement without any termination fee or penalty within 10 business days after the date of the first bill issued to the customer for products or services provided by the alternative gas supplier. The agreement shall disclose the opportunity and provide a toll-free phone number that the customer may call in order to terminate the agreement.
(f) The alternative gas supplier shall provide each customer the opportunity to rescind its agreement without penalty within 10 business days after the date on the gas utility notice to the customer. The alternative gas supplier shall disclose to the customer all of the following:
(1) that the gas utility shall send a notice
confirming the switch;
(2) that from the date the utility issues the notice
confirming the switch, the customer shall have 10 business days before the switch will become effective;
(3) that the customer may contact the gas utility or
the alternative gas supplier to rescind the switch within 10 business days; and
(4) the contact information for the gas utility and
the alternative gas supplier.
The alternative gas supplier disclosure shall be included in its sales solicitations, contracts, and all applicable sales verification scripts.
(g) The provisions of this Section shall apply only to alternative gas suppliers serving or seeking to serve residential and small commercial customers and only to the extent such alternative gas suppliers provide services to residential and small commercial customers.
(Source: P.A. 97-333, eff. 8-12-11.)
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Last modified: February 18, 2015