LAWS & REGULATIONS
State Advisory on Energy Company and Do Not Call List
Illinois Attorney General Cracks Down on Deceptive Electric Supplier: Residents Energy Faces $15 Million Lawsuit October 8, 2023
Illinois residents may have been swindled out of $15 million due to allegedly deceptive tactics by alternative electric supplier Residents Energy, according to a 50-page complaint filed on September 29. The lawsuit, announced by Illinois Attorney General Kwame Raoul’s office, accuses the company of engaging in deceptive practices, potentially causing some customers’ energy costs to triple.
The complaint alleges that Residents Energy’s sales force promised customers “historically low” first-month rates without adequately disclosing that these were temporary deals. Some recorded phone calls reveal salespeople claiming that their rates were consistently lower than those of the utility company. However, the suit asserts that, on average, the company’s rates were nearly double those offered by ComEd in 2020.
From 2018 to 2020, the complaint alleges that Residents Energy customers paid 55% more than they would have with the public utility company. The state also accuses the company of violating Illinois’ Telephone Solicitations Act by providing third-party salespeople with a script that fails to promptly state the purpose of the call. Instead, the script reportedly begins with a rebate offer and can mislead customers into thinking they are affiliated with the public utility.
Additionally, salespeople allegedly told falsehoods during recorded phone calls, including discussing rebates through a non-existent program called the “Illinois Energy Choice Program.” Some customers were misled into believing that the public utility company charged them every time they opened their fridge.
The state’s complaint also references numerous complaints filed by residents with the Illinois Commerce Commission. These complaints claim that they weren’t informed when their bills increased by more than 20% from one month to the next, which is illegal in Illinois. Some residents also alleged that they were enrolled in Residents Energy programs without their consent through manipulated audio recordings, which the state characterizes as a “widespread company practice.”
Residents Energy LLC, headquartered in New York, has been operating in Illinois since 2016 and is active in nine other states, including Indiana and Michigan.
The company faces 12 charges in total from Illinois, each carrying a potential $50,000 penalty, which doubles if the violation affects someone with a disability or who is 60 years or older.
Illinois is also seeking an injunction to halt the company’s business practices during the litigation. The state aims to provide relief to those who were deceived by the company and cover investigation costs. A hearing is scheduled for January 30, 2024.
Residents Energy LLC was sued last year by an Elmhurst man who received numerous unsolicited calls soliciting energy services, even after registering his phone on the National Do Not Call Registry. The suit also alleged the use of illegal “automatic telephone dialing systems” and automated voice systems. The plaintiff sought $1,500 per call, among other damages.
Deceptive practices by energy suppliers can affect residents nationwide. If you believe you’ve been a victim of such tactics, it’s crucial to take action. Document your experiences, seek guidance from consumer protection agencies, and stay informed about legal actions against these companies.
For personalized advice and a free consultation, don’t hesitate to call our law office. We’re here to help you understand your rights and explore potential legal remedies. By standing up against deceptive practices, you not only protect your rights but also contribute to a fair marketplace for everyone. Don’t let deceptive energy suppliers go unchecked—take action today by contacting our team.
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Source: Illinois sues alternative electric supplier for ‘deceptive’ tactics that may have cost residents $15 million | Chicago Sun Times
Have you ever received endless robocalls selling solar panels, with promises of huge savings and eco-friendly living? You’re not alone.
A New Jersey-based telemarketing company, Solar Xchange LLC, also known as Energy Exchange, recently faced fines for making ‘tens of millions’ of robocalls to individuals who had signed up for the Federal Do Not Call Registry. The Federal Trade Commission (FTC) revealed that thousands of customers reported receiving numerous calls from the company, with some receiving over 100 calls each.
These Solar Xchange telemarketers went as far as lying about their affiliations with utility companies or government agencies and misleading customers about potential savings from installing solar panels on their homes. But there’s hope for the victims seeking justice, and this article aims to guide you on how to protect yourself from such illegal robocall schemes.
The Deception Schemes of Solar Xchange Telemarketers
Solar Xchange telemarketers, in partnership with Vision Solar, engaged in deceptive practices to generate leads for their solar panel sales. They sourced consumers’ telephone numbers from third-party lead generators and initiated outbound calls, falsely identifying themselves as “Energy Exchange” to avoid immediate hang-ups from wary recipients.
Their scripts misled people into believing they were affiliated with government entities or electric utility companies, exploiting their trust to schedule in-home consultations with Vision Solar salespeople. False claims of substantial savings on energy bills and the promise of hassle-free installations were used to lure unsuspecting consumers.
The Federal Trade Commission’s Crackdown
The Federal Trade Commission took decisive action against Solar Xchange and Vision Solar to protect consumers from illegal robocalls and deceptive telemarketing practices. The complaint filed by the federal Department of Justice revealed that Solar Xchange telemarketers placed over 150,000 calls to different phone numbers at least 50 times each, and over 12,000 phone numbers were called over 100 times each.
This relentless barrage of calls, despite consumers being on the Do Not Call Registry, led to the imposition of $13.8 million in civil penalties. While most of the fines were suspended, the companies were still required to pay a substantial amount as a settlement.
Holding the Violators Accountable
The defendants in this case include Solar Xchange LLC, Vision Solar, and the owner of Solar Xchange, Mark Getts. The complaint alleges that Mark Getts played a pivotal role in formulating scripts, purchasing phone numbers, and overseeing contracts with telephone service providers.
Vision Solar was also named as a defendant, accused of using Solar Xchange’s robocalls to engage in abusive telemarketing practices. Despite denying any liability, Solar Xchange and Mr. Getts accepted a nominal settlement to avoid prolonged legal battles against a well-resourced government agency.
Empowering Robocall Victims
If you’re among the victims of Solar Xchange’s deceptive robocall campaigns, you have the right to seek justice. The law prohibits telemarketers from calling numbers registered on the Do Not Call Registry, and engaging in abusive or harassing telemarketing practices. By standing up against these violations, you not only protect yourself but also help prevent others from falling prey to such scams.
Seeking Legal Assistance and Free Consultation
Our law firm understands the frustration and annoyance caused by robocalls from Solar Xchange telemarketers. If you have received multiple unsolicited calls despite being on the Do Not Call Registry, or if you believe you have been deceived by false claims from Solar Xchange and Vision Solar, we are here to help. Our experienced team of attorneys is dedicated to fighting for the rights of robocall victims and seeking justice on your behalf.
Contact us today for a free consultation to discuss your situation. We’ll assess your case, answer your questions, and guide you through the process of seeking compensation for the damages caused by these illegal robocalls. Together, we can put an end to the deceptive practices of Solar Xchange telemarketers and ensure a safer environment for consumers. Don’t suffer in silence – take action and protect your rights.
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Sources:
N.J. company fined for making ‘tens of millions’ of robocalls selling solar panels | NJ.com
COMPLAINT | FTC
By: Kevin E. McCarthy, Principal Analyst
“You asked (1) whether telemarketers for competitive electric suppliers are subject to state and federal laws governing solicitations of people on “do-not-call” lists and (2) what remedies are available to people who are on such lists who contacted by suppliers.
SUMMARY
Telemarketers for competitive electric suppliers are subject to state and federal laws governing solicitations of people on “do-not-call” lists. Among the remedies available for people on the list who are called by telemarketers in violation of the law are various Department of Consumer Protection (DCP) enforcement actions, including injunctive relief and civil penalties and suing for damages for violations under the federal law.
APPLICABILITY OF TELEMARKETING LAWS
Electric suppliers and their telemarketers are subject to state and federal laws that generally prohibit businesses from making unsolicited calls to individuals who have placed their names on the state and federal do-not-call lists. State law (CGS § 42-288a) requires DCP to establish and maintain a listing of consumers who do not wish to receive unsolicited telephone sales calls from firms offering goods or services. In practice, the state list is integrated with the national do-not-call list maintained by the Federal Trade Commission (FTC).
Another state law, CGS § 16-245, specifically requires electric suppliers to comply with the federal telemarketing regulations adopted pursuant to 15 USC § 6102. This federal law requires the FTC to adopt regulations prohibiting abusive and deceptive telemarketing practices. Under these regulations, abusive practices include, among other things, calling someone (1) who has stated that he or she does not wish to receive calls made by or on behalf of the seller whose goods or services are being offered or (2) whose telephone number is on FTC’s do-not-call list (16 CFR Part 310).
There are a number of exceptions to the prohibitions on calling people on the do-not-call lists. For example, state law permits businesses to call people whose name is on the state list if the call is:
to an existing customer, unless he or she has informed the business that he or she no longer wishes to receive its calls;
primarily in connection with an existing debt or contract that has not been paid or performed; or
from a business that has operated in Connecticut for less than one year. OLR Report 2003-R-0500 describes other exceptions.
Similarly, federal law permits calls to people on the list in several circumstances. For example, federal law allows businesses to call consumers with whom they have an established business relationship. FTC regulations define “established business relationship” in a way that allows a business to call for up to 18 months after a consumer’s last purchase, payment, or delivery of goods or services.
In addition, federal law (47 U.S.C. § 227) prohibits:
making a call using any automatic telephone dialing system or an artificial or prerecorded voice to a cellphone, other than a call made for emergency purposes or made with the prior express consent of the called party or
calling a residential telephone line using an artificial or prerecorded voice to deliver a message without the prior express consent of the called party. Telemarketers often use automated dialing system or an artificial or prerecorded voice as part of their marketing calls.
REMEDIES
There are a variety of remedies open to consumers who believe that a telemarketer has violated the state or federal law. For complaints regarding telemarketers in general, consumers can contact DCP or FTC. In addition, consumers in Connecticut can file complaints regarding electric suppliers, including complaints about their telemarketing, with the Public Utilities Regulatory Authority (PURA).
State
DCP’s website, http://www.ct.gov/dcp, has a complaint form for people on the national do-not-call list who have complaint regarding calls from Connecticut companies. It recommends that people with complaints regarding out-of-state companies use the complaint form for the national list, and has a link to this form on its website.
Subject to the exceptions described above, calling someone on the state do-not-call list is a violation of the Connecticut Unfair Trade Practices Act (CUTPA). Under CUTPA, the DCP commissioner may investigate complaints, issue cease and desist orders, order restitution in cases involving less than $5,000, enter into consent agreements, ask the attorney general to seek injunctive relief, and accept voluntary statements of compliance.
CUTPA also allows individuals to sue. Courts may issue restraining orders; award actual and punitive damages, costs, and reasonable attorneys fees; and impose civil penalties of up to $5,000 for willful violations and $25,000 for violating a restraining order. Violators also must be fined up to $11,000 for each violation. However, under CGS § 42-288a, these penalties do not apply if a telephone solicitor (the telemarketer or the firm that hired it) demonstrates that (1) it established and implemented written procedures and trained its employees to follow the law; (2) it deleted from its call list any consumer on the current do-not-call list; and (3) the call was made inadvertently. OLR Report 2011-R-0494 has additional information upon CUTPA and enforcement actions under it.
In addition, under CGS § 16-245o, electric suppliers that violate federal telemarketing regulations are subject CUTPA penalties. Suppliers must obtain licenses from PURA and as a condition of continued licensure they must comply with CUTPA. Any supplier that fails to comply with a license condition is subject to (1) a civil penalty of up to $10,000, (2) the suspension or revocation of its license or (3) a prohibition on accepting new customers following a hearing.
CGS § 16-245t requires PURA to receive and act on customer inquiries and complaints regarding suppliers and to establish a toll-free telephone number for this purpose. Under CGS § 16-245u, upon complaint or upon its own motion, for cause shown, PURA must investigate any unfair or deceptive trade practices. If it finds a violation of state or federal law, it must transmit its findings along with supporting information to DCP or other appropriate enforcement officials. The referral may recommend that further investigation be made or that immediate enforcement procedures be initiated. The results of the PURA investigations may also serve as a basis for sanctions, after notice and hearing.
Federal
Individuals on the national list can file complaints on a form available at https://www.donotcall.gov/. Complaints made to FTC are entered into its Consumer Sentinel system, an online database available to more than 1,000 civil and criminal law enforcement agencies. While the FTC does not resolve individual consumer problems, complaints help it investigate the companies that are the subject of complaints and can lead to law enforcement action. For example, FTC has imposed multi-million dollar fines on Craftmatic (a bed manufacturer) and ADT (an alarm services company) for violations of the federal do-not-call law and other telemarketing violations.
In addition, people who believe that a telemarketer has violated 47 U.S.C. § 227 regarding the use of automatic dialers or pre-recorded or artificial voices can file a suit in state court for injunctive relief, damages, or both. The damages are the greater of $500 per violation or the actual monetary loss due to the violation. If the court finds that the defendant willfully or knowingly violated this law or its implementing regulations, the court can increase the amount of the award to up to three times these amounts.
Individuals can bring actions regarding alleged violations of 15 USC § 6101 et seq. in federal court, but only if the actual damages exceed $50,000. Moreover, if the FTC or the Bureau of Consumer Financial Protection initiates an action for such violations, individuals cannot sue while that action is pending.” Ct Do Not Call Opinion Letter
Compensation
You can stop the calls and in many cases secure compensation at no cost to you. Call (973) 598-1980 for a Free Consultation.