220 CMR, § 14.05

Current through Register 1536, December 6, 2024
Section 14.05 - Information Disclosure Requirements
(1)Purpose and Scope.
(a)Purpose. The purpose of 220 CMR 14.05 is to ensure that Residential and Non-Residential Customers with an annual load of less than or equal to 7,000 therms are presented with consistent information by which to evaluate services offered by Suppliers and Local Distribution Companies.
(b)Scope. 220 CMR 14.05 applies to all Suppliers and to Local Distribution Companies as specified in 220 CMR 14.05.
(2)Terms of Service Requirement. Each Supplier shall prepare a statement entitled "Terms of Service" as described in 220 CMR 14.05(2). The Terms of Service shall be distributed in accordance with 220 CMR 14.05(3), and shall conform to all applicable rules and regulations of the Attorney General (940 CMR). The Terms of Service shall present the following information:
(a) Actual pricing structure according to which the Retail Customer will be billed, including an explanation of price variability and price level adjustments that can cause the price to vary;
(b) Length and kind of contract;
(c) Due date of Bills and consequences of late payment;
(d) Conditions under which a credit agency is contacted;
(e) Deposit requirements and interest on deposits;
(f) Limits on warranty and damages;
(g) Any and all charges, fees, and penalties;
(h) Information on consumer rights pertaining to third-party billing, deferred payments, and rescission of supplier switch within three days of receipt of confirmation;
(i) A toll-free number for customer service and complaints;
(j) Low-income rate eligibility;
(k) Statement that customers should contact their local distribution company for details on

the availability and terms of default service; and

(l) Method whereby the Retail Customer will be notified of changes to items in the Terms of Service.
(3)Distribution of Terms of Service. The Terms of Service shall be distributed as follows:
(a) At the same time or immediately subsequent to a Retail Customer's affirmative choice of a Supplier, the Supplier shall provide the Retail Customer with the Terms of Service prepared pursuant to 220 CMR 14.05(2). Said document shall accompany written confirmation by the Supplier of the Retail Customer's agreement to take Supplier Service; and the Retail Customer's receipt of said document shall trigger the three-day rescission period required in 220 CMR 14.04(4)(d).
(b)Default Service. With the first bill rendered to a Retail Customer following the initiation of Default Service, the Local Distribution Company shall notify the Retail Customer that the tariff for such service and the Local Distribution Company's terms and conditions for Distribution Service are on file with the Department and are available upon request.
(c)Upon Request. The Terms of Service, or terms and conditions, for any available supply offerings shall be available to any person upon request.
(4)Information Disclosure in Advertising.
(a) All advertisements shall comply with state and federal regulations governing advertising, including the Attorney General's regulations (940 CMR). The Department does not represent that materials prepared pursuant to 940 CMR constitute compliance with state and federal regulations governing advertising.
(b) Any advertising or marketing of natural gas rates shall indicate the rate to be charged in bold print, in the case of printed and Internet materials, or through clear and distinct speech in the case of television or radio advertisements.
(c) A Supplier shall print in a prominent position in all written marketing materials describing Supplier Service, including newspaper, magazine, and other written advertisements; direct mail materials; and electronically-published advertising including Internet materials, that a Retail Customer may obtain the Terms of Service upon request. Where Supplier Service is marketed in non-print media, the marketing materials shall indicate that the Retail Customer may obtain the Terms of Service upon request.
(5)Enforcement. Dissemination of inaccurate information, or failure to comply with the Department's regulations on information disclosure, may result in suspension, revocation, or non-renewal of a Supplier's or Retail Agent's certificate pursuant to 220 CMR 14.04(2)(e).

220 CMR, § 14.05

Amended by Mass Register Issue 1315, eff. 6/17/2016.