Section 40. Aggregators

A. Each person seeking to act as an aggregator shall obtain a license from the State Corporation Commission prior to conducting business as an aggregator within the Commonwealth.

B. An aggregator shall abide by the following requirements as applicable:

1. An aggregator that is also the competitive service provider or acting as an agent of a competitive service provider for two or more customers shall comply with all of the provisions of this chapter applicable to competitive service providers with respect to such customers.

2. An aggregator that does not meet the conditions in subdivision 1 of this subsection in arranging to provide service to a customer, shall:

a. In any advertisements, solicitations, marketing materials, or customer service contracts provide accurate, understandable information, in a manner that is not misleading;

b. Disclose in writing to prospective customers, and include in each written contract: (i) the nature of the service to be provided; (ii) the length of the contract; (iii) the fees or prices that will be charged for such service, provisions for termination of the contract by the customer and the aggregator; (iv) any other terms that are necessary for the prospective customer to make an informed choice in selecting an aggregator; and (v) following a clear and conspicuous caption: "Customer's Right to Cancel" appearing on the front side of the contract, or immediately above the customer's signature, in bold face type of a minimum size of 10 points, a statement that any customer may cancel its contract with an aggregator by notifying the aggregator, without penalty, at any time, prior to midnight of the third business day following receipt of the contract;

c. Provide to each customer a written contract, which may be hand delivered, mailed, or electronically transmitted, and which shall be deemed to have been received on the date such contract is hand delivered or electronically transmitted or three calendar days after the date the contract was mailed; and

d. Provide a period of three business days, commencing with the customer's receipt of a written contract, during which time the customer may withdraw from the contract without incurring any penalty or other obligations.

3. An aggregator expecting to receive compensation from a retail customer shall, prior to contracting with customers, provide written notice to the customers or prospective customers if the aggregator is, or expects to be, compensated by one or more competitive service providers. Such notice shall identify such competitive service providers.

Historical Notes

Derived from Volume 16, Issue 20, eff. May 26, 2000.

Statutory Authority

§ 12.1-13 of the Code of Virginia.