Molly Ayala
Deceptive business practices by energy providers can take many forms, from misleading advertising to outright scams. While most retail energy providers (REPs) are reliable and honest, there are a few bad apples in the bunch, and it's important to know how to report them. If you believe you have been the victim of a scam or deceptive practice by an electric company, there are several avenues you can take to report it, depending on your location and the specifics of your situation. For example, in Texas, you can contact the Public Utility Commission (PUC) or the Office of the Public Utility Counsel (OPC) for assistance with private electricity providers or municipal electric companies and co-ops, respectively. Additionally, the Federal Trade Commission's (FTC) Bureau of Consumer Protection works to stop deceptive business practices by collecting reports, conducting investigations, and suing companies that make deceptive claims.
| Characteristics | Values |
|---|---|
| Scams | Door-to-door salespeople claiming you're being overcharged for energy and asking to see your bill; pressuring you to sign immediately; asking for sensitive information; demanding immediate payment; threatening to disconnect your energy supply |
| Deceptive business practices | Slamming (signing you up for services without your consent); impersonating a utility company or government representative; misleading advertising |
| How to protect yourself | Ask door-to-door salespeople for a permit and/or business card; confirm the status of your account before believing unsolicited calls; don't give out sensitive information; be aware of common scams |
| Where to report | The FTC's Bureau of Consumer Protection; a provincial or territorial consumer affairs office; a Better Business Bureau; the Public Utility Commission (PUC); the Office of the Public Utility Counsel (OPC); the Office of the Attorney General (OAG) |
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What You'll Learn
Report to the Federal Trade Commission's Bureau of Consumer Protection
Deceptive business practices by electric companies can be reported to the Federal Trade Commission's Bureau of Consumer Protection. The FTC's Bureau of Consumer Protection works to stop unfair, deceptive, and fraudulent business practices. They do this by collecting reports from consumers, conducting investigations, suing companies and people that break the law, developing rules to maintain a fair marketplace, and educating consumers and businesses about their rights and responsibilities.
The FTC sues companies that make deceptive claims about their products or services, and these lawsuits can result in refunds for affected consumers. The FTC collects fraud reports about companies, business practices, identity theft, and violations of the National Do Not Call Registry. They share these reports with their law enforcement partners and use them to investigate fraud and eliminate unfair business practices. Each year, the FTC releases a report with information about the number and types of reports they have received.
You can report deceptive business practices by electric companies to the FTC by visiting their website, ReportFraud.ftc.gov. In addition to their offices in DC, the FTC also has eight regional offices in Atlanta, Chicago, Cleveland, Dallas, Los Angeles, New York, San Francisco, and Seattle.
It is important to note that most retail energy providers (REPs) are reliable, hardworking, and honest companies, and deceptive business practices are rare. However, it is always good to be aware of potential scams and to know how to report them if they do occur.
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File a complaint with the Public Utility Commission
If you have a problem with a utility company and have already contacted the company, filing a complaint with the Public Utility Commission (PUC) may be the next step to get the issue resolved. The PUC oversees electric companies and may be able to assist you with your issue.
The PUC accepts both informal and formal complaints. Common informal complaints include residential billing issues, service quality, and payment arrangement requests. Informal complaints do not involve a legal proceeding and are recommended as the first course of action, as many issues can be resolved sooner through this simpler process.
Common formal complaints include rate protests and begin a legal proceeding where the complainant presents evidence and a judge issues a decision. Formal complaints can be filed if you cannot resolve the problem after talking with the utility's customer service. Through the formal complaint procedure, the PUC can order your utility to take corrective action on various formal complaints.
If you are unsure whether your issue is regulated by the PUC, you can search for previously filed formal complaints against utilities on the PUC website. This will help you determine if your concern falls under the jurisdiction of the PUC or if you need to contact a different organization.
In addition to the PUC, other organizations can assist with complaints against utility companies. For example, in Texas, the Texas Railroad Commission (TRC) oversees the natural gas industry and accepts complaints about billing, purchasing, selling, shipping, transportation, or gathering practices of natural gas providers. The Federal Communications Commission also accepts consumer complaints about telephone service.
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Contact a provincial or territorial consumer affairs office
If you are experiencing deceptive business practices from electric companies, you can contact a provincial or territorial consumer affairs office to file a complaint and seek assistance. These offices are responsible for handling consumer complaints and providing consumer protection information.
Service Alberta and Red Tape Reduction:
- Address: 3rd Floor 10155 102nd St Edmonton AB T5J 4L4
- Telephone: 780-427-4088
- Toll-Free: 1-877-427-4088
- Email: [email protected]
- Website: www.alberta.ca/service-alberta.aspx
Consumer Protection BC:
- Address: 321-3600 Uptown Blvd PO Box 9244 Victoria BC V8W 9J2
- Telephone: 604-320-1667
- Toll-Free: 1-888-564-9963
- Fax: 250-920-7181
- Email: [email protected]
- Website: www.consumerprotectionbc.ca
Consumer Protection Office Manitoba Justice:
- Address: 302-258 Portage Ave Winnipeg MB R3C 0B6
- Telephone: 204-945-3800
- Toll-Free: 1-800-782-0067
- Fax: 204-945-0728
- Email: [email protected]
- Website: www.gov.mb.ca/consumerinfo
Consumer Protection Division, Financial and Consumer Affairs Authority of Saskatchewan:
- Address: 500–1919 Saskatchewan Dr Regina SK S4P 4H2
- Telephone: 306-787-5550
- Toll-Free: 1-877-880-5550
- Fax: 306-787-9779
- Email: [email protected]
- Website: fcaa.gov.sk.ca
Consumer Services Department of Community Services, Yukon:
- Address: 307 Black St Whitehorse YT Y1A 2N1
- Telephone: 867-667-5111
- Toll-Free: 1-800-661-0408 ext. 5111
- Fax: 867-667-3609
- Email: [email protected]
- Website: Contact the government
Consumer Affairs Department of Municipal and Community Affairs, Northwest Territories:
- Address: 600-5201 50th Ave Yellowknife NT X1A 3S9
- Telephone: 867-767-9161 ext. 21022
- Fax: 867-873-0309
- Email: [email protected]
- Website: www.gov.nt.ca/dgsnl/consumer/consumer-affairs
Service Nova Scotia and Internal Services:
- Address: 7 North, Maritime Centre 1505 Barrington Street PO Box 1003 Halifax, Nova Scotia B3J 2X1
- Telephone: 902-424-5200
- Toll-Free: 1-800-670-4357
- Fax: 902-424-0720
- Email: [email protected]
- Website: NovaScotia.ca/programs-and-services/consumer-protection
Consumer Affairs Department of Community and Government Services, Nunavut:
- Address: 3090 6th St PO Box 440 Baker Lake NU X0C 0A0
- Telephone: 867-793-3303
- Toll-Free: 1-866-223-8139
- Fax: 867-793-3321
- Email: [email protected]
- Website: www.gov.nu.ca/en/services/consumer-affairs
These offices can provide assistance and guidance on a range of consumer issues, including deceptive business practices. It is important to note that most provinces and territories have laws in place to protect consumers from unfair or deceptive practices.
Additionally, if you are in Texas, you can contact the Public Utility Commission (PUC) for concerns about private electricity providers. The PUC oversees electric companies and can assist with billing disputes. You can also file a consumer complaint with their office if needed.
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Recognise common scams, e.g. door-to-door sales
Door-to-door sales is a common practice among electricity and gas marketers throughout the US, with sales representatives promising big savings. However, this sales tactic has also been used by some companies to scam unsuspecting customers. Here are some ways to recognise and protect yourself from potential door-to-door sales scams:
- Ask for identification: Always ask for identification from anyone knocking on your door and claiming to be an energy salesperson. Verify their credentials and the company they represent before proceeding further.
- Be cautious of your energy bill: Some scammers may ask to see your energy bill, claiming that they can offer you lower rates. Do not show your bill to strangers, as they can use your account number to sign you up for unwanted services without your consent.
- Recognise high-pressure sales tactics: If a salesperson pressures you to sign a contract immediately, it is likely a scam. They may use phrases like "We have a sale/special price on our energy rates that ends tomorrow" to create a sense of urgency and rush your decision-making process.
- Verify their claims: If a salesperson claims to be working with your utility company or the government, contact your utility company directly to confirm their affiliation. Do not rely solely on their words, as some scammers may impersonate or falsely represent themselves to gain your trust.
- Know your rights: Familiarise yourself with the rules and regulations regarding door-to-door sales in your local area. Many states have outlined specific hours during which door-to-door salespeople are allowed to contact potential customers. If a salesperson violates these rules, you can report them to the appropriate authorities.
- Ask questions: When speaking to a door-to-door salesperson, ask clear and specific questions about the contract, such as cancellation fees, base charges, and minimum usage fees. A legitimate salesperson should be able to provide you with transparent and accurate information.
- Protect your personal information: If you suspect a scammer, do not provide any personal information, and ask them to leave your property immediately. Scammers may try to obtain your personal information to steal your identity or sign you up for services without your consent.
Remember, while most energy providers are trustworthy, it is important to stay vigilant and informed to protect yourself from potential scams and deceptive business practices.
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Identify deceptive advertising and misleading claims
Deceptive advertising and misleading claims are common unfair business practices. These claims can range from false product specifications to misleading price comparisons, or even false testimonials from fake customers. Deceptive advertising is not only illegal but also unethical. It violates the trust of consumers and undermines the integrity of the business.
- Misleading advertising occurs when a claim about a product or service is materially false, in an attempt to persuade the consumer to buy it. For example, a company may claim that its product can cure all types of diseases when, in reality, it only treats a specific type of illness.
- Businesses may compare their products to those of their competitors in a way that makes their products seem cheaper, even though the price difference is minimal.
- Many advertisements include some information in fine print. Information in fine print must not conflict with the overall message of the advertisement. For example, an advertisement that states that a product is "free" but mentions an extra payment in the fine print is likely to be misleading.
- Companies may use fake testimonials from "satisfied customers" to promote their products. These testimonials can be misleading as they may not reflect the experiences of real customers.
- Deceptive door-to-door sales are also common. Salespeople may claim that you are being charged too much for energy and ask to see your energy bill. They may then sign you up for their services without your consent, resulting in an increased bill.
If you believe you have encountered deceptive advertising or misleading claims, you can take the following steps:
- Contact the business to explain the problem.
- Report it to the relevant authorities, such as the Competition Bureau or a provincial or territorial consumer affairs office.
- File a complaint with the Public Utility Commission (PUC) or the Office of the Public Utility Counsel (OPC), which oversee electric companies and provide information about taxes, charges, and fees on utility bills.
- Reach out to consumer advocacy groups, such as the Consumer Federation of America (CFA) or Public Citizen, which advocate for consumer rights and protections.
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Frequently asked questions
Some common deceptive business practices include slamming, where companies sign you up for their services without your consent, and impersonation, where they pretend to be associated with your local utility or Public Utilities Commission. Scammers may also employ aggressive and intimidating tactics, claiming you owe them money and threatening to disconnect your energy service if you don't pay up. They may even spoof the phone number of your energy provider to make the call seem legitimate.
It's important to be vigilant and aware of potential scams. Know the basic details about your energy bill, such as your energy provider, the type and length of your plan, and the services you pay for. Be cautious when dealing with door-to-door salespeople or unsolicited calls, and always ask for identification and permits. Legitimate company representatives will be happy to let you confirm your account details and will not pressure you to make rushed decisions or provide sensitive information on the spot.
If you believe you have been a victim of a scam or deceptive business practice, you can report it to the relevant authorities. In the United States, you can contact the Federal Trade Commission's (FTC) Bureau of Consumer Protection, which takes reports about deceptive and fraudulent business practices. You can also contact your local or state consumer affairs office, the Better Business Bureau, or the Public Utility Commission (PUC) for assistance and to file complaints.
Reporting deceptive business practices helps protect others from falling victim to scams and exploitation. Authorities, such as the FTC, collect these reports to investigate fraud, take legal action against scammers, and eliminate unfair business practices. They may also provide refunds to affected individuals and educate consumers and businesses about their rights and responsibilities.
