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03/28/2024 08:13 AM
Pennsylvania State Senate
https://www.legis.state.pa.us/cfdocs/Legis/CSM/showMemoPublic.cfm?chamber=S&SPick=20130&cosponId=14679
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Senate of Pennsylvania
Session of 2013 - 2014 Regular Session

MEMORANDUM

Posted: May 2, 2014 12:54 PM
From: Senator Richard A Kasunic
To: All Senate members
Subject: Electric Generation Supplier Termination/Cancellation Fees
 
In the near future, I plan to introduce legislation that would prohibit the charging of a termination/cancelation fee by an electric generation supplier (supplier) under certain circumstances.

As you aware, consumers are regularly subject to sales techniques by suppliers who upon initial contact provide little detail beyond potential cost savings. Often times, a consumer who agrees to switch suppliers based on the initial sales call, will only later realize the additional terms of the contract. The consumer will then try to terminate or cancel the agreement with the new supplier. Under current law, if this happens beyond a 3-day grace period, the new supplier may then charge the consumer a termination/cancelation fee.

My office has received complaints from constituents regarding the aggressive marketing tactics that suppliers are undertaking through both telemarketing and door-to-door sales techniques. In an effort to enhance consumer protection, this bill would prohibit a supplier who initiates sales contact with a consumer from charging any fee if a contract is terminated or canceled.

If you have any questions regarding this legislation please do not hesitate to contact my office.





Introduced as SB1414