District of Columbia Attorney General, Brian L. Schwalb, has issued a strong warning to local residents regarding a troubling surge of deceptive sales tactics being employed by third-party energy companies operating throughout the District.
These companies are allegedly pressuring residents to switch from their regulated utility providers, such as Pepco and Washington Gas, to their services, often resulting in the imposition of higher rates under misleading or even illegal contracts.
“District residents should be on high alert if someone asks them to switch energy providers, as multiple third-party energy companies are using illegal pressure tactics to get D.C. residents to sign predatory contracts,” Schwalb stated.
“Such scams utilize a range of tricks to entice customers with promises of lower utility bills, only to ensnare them into long-term agreements with exorbitant rates. Residents are urged to report any deceptive or high-pressure sales tactics to our Office of Consumer Protection.”
The Office of the Attorney General (OAG) has reported receiving numerous complaints regarding these dubious practices, which include door-to-door visits, phone solicitations, misleading mailers, and even attempts at community events like farmers’ markets to persuade residents to change providers.
Some salespeople have been known to impersonate representatives from Pepco, Washington Gas, or even the D.C. government — a tactic that the OAG confirms is illegal.
This advisory comes as many households in D.C. continue to grapple with high utility costs.
Pepco and Washington Gas, as the District’s regulated utility providers, offer what is termed a “standard offer of service” rate. This rate is generally much lower than what third-party companies charge after their initial promotional rates lapse. Residents choosing to stay with Pepco or Washington Gas are automatically enrolled in these regulated rates and are under no compulsion to switch providers.
The OAG has highlighted several deceptive sales tactics that have been reported, which include:
– Sales representatives requesting to see residents’ utility bills while falsely claiming to work for Pepco or Washington Gas.
– Urgent-looking mailers that mimic official documents yet are sent by private companies.
– Statements suggesting that residents must switch providers or that such a move will lead to savings without revealing that the lower rates are temporary and will likely rise sharply afterward.
The OAG has advised residents to be cautious of any offers that include incentives like gift cards or “signing bonuses” for switching services. Residents are encouraged to ask pertinent questions before entering into any new energy contracts, including:
– How long is the introductory rate available?
– What happens to the rate after the discount period expires?
– Is there a cancellation fee?
– Is the rate fixed or variable?
According to the law, third-party salespeople must identify themselves and their companies, present a valid photo ID, and obtain the customer’s consent before beginning their pitch. Additionally, they must permit potential customers to complete verification calls independently, without any coercive influences — a requirement that the OAG states is frequently disregarded.
Should residents suspect they have encountered deceptive or illegal sales behavior, they are encouraged to report such incidents to the Office of Consumer Protection at 202-442-9828, via email at [email protected], or by filing a complaint online.
For those who have switched energy suppliers, there is a three-day grace period during which they can cancel without penalties, although fees may apply after this period based on contract terms.
Residents seeking assistance with cancellation or reverting to their previous providers may contact the Office of the People’s Counsel at (202) 727-3071 or the D.C. Public Service Commission at (202) 626-5120.
“Don’t be tricked into paying more,” warned an official. “If it sounds too good to be true, it probably is.”
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