Penalty Amount
$400,000
Connecticut Attorney General and agencies settled with Town Square Energy for deceptive marketing, including misrepresenting rates and enrolling customers without consent. Town Square must pay $400,000 to Operation Fuel and cease in-person marketing for 15 months.
Town Square Energy must pay $400,000 to Operation Fuel and cease all in-person marketing, including door-to-door and tabletop sales, for 15 months.
In-house legal teams should review vendor agreements with third-party energy suppliers, customer enrollment contracts, and marketing services agreements. Key clauses to examine include: (1) consent mechanisms ensuring explicit, documented customer authorization before enrollment; (2) rate representation warranties prohibiting misrepresentation of standard service rates; (3) marketing channel limitations banning in-person/door-to-door solicitation; (4) language access requirements for non-English speakers; and (5) compliance with 'no trespassing' policies. Potential changes may involve adding opt-in consent verbiage, clear rate comparison disclosures, explicit prohibitions on door-to-door/tabletop sales, multilingual notice obligations, and audit rights to monitor marketing practices.
Entity
Town Square Energy
Industry
OtherOfficial Press Release
https://portal.ct.gov/ag/press-releases/2021-press-releases/state-announces-settlement-with-town-square-marketing-over-improper-marketing
10 03 11re03 fully executed avc 072821.pdf?rev=d21b066144074
https://portal.ct.gov/-/media/ag/press_releases/2021/10-03-11re03_fully-executed-avc_072821.pdf?rev=d21b0661440749e6a1cb87a73a3522f1&hash=29BAC08C844F20296E9F3741E89BE18F
Connecticut Attorney General Enforcement Page
https://portal.ct.gov/AG/Privacy/Privacy-Resources
$29.6M
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$29.6M
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