Stealth Solar, LLC, reached a settlement with Arizona Attorney General Mark Brnovich, who accused the company of violating the Arizona Consumer Fraud Act, the Arizona Attorney General’s Office said last week.
The energy company, which sells solar-panel systems, will pay $72,000 to customers in the general pool, plus $20,000 to customers who file complaints in the next six months; $160,000 for civil fees; and $20,000 for attorney fees and the cost of the investigation.
Stealth allegedly bombarded customers with telemarketing calls, which aimed to convince consumers to allow salespeople to come to their homes and make pitches. The company would mislead customers by getting them to believe they would save money on energy costs, and would use deceptive language to portray these savings, However, it was found that customers didn’t save money, and in some cases, solar panels led to increased costs due to the cost of the solar gear.
“We thank those customers who came forward to voice their concerns about this company,” Brnovich said. “Our attorneys want to know about false advertising. With that information, we can hold companies accountable for deceiving consumers.”
The company operated from 2010 to 2014 in California, Arizona and Hawaii. The Arizona attorney general's office received approximately 50 complaints about the company, with most customers saying they never received the promised savings.