An electric generation supplier is facing legal action from the state of Pennsylvania over allegations that they misled customers, said state Attorney General Kathleen Kane.
Kane filed an assurance of voluntary compliance on Thursday against Ethical Electric, which will require the company to state clearly to consumers that if they sign on with the company they will be switching from their default utility service.
Kane said her office's Bureau of Consumer Protection has received numerous complaints from customers claiming the solicitation and marketing pieces mailed by Ethical Electric are confusing. The company is an electric distributor and supplies electricity to commercial and residential consumers throughout the state.
The marketing pieces listed main utility companies such as West Penn Power, PPL or PECO on the top of the letter making it seem like the letter was from the companies directly. Kane said it made consumers believe they were joining a program that was through one of the default companies.
The letters were also marked with terms such as “Second Notice” and “Important” giving consumers a sense of urgency and causing more confusion. After an investigation, the consumer protection bureau determined Ethical Electric should have stated clearly that the solicitation pieces were from them and not from another utility service.
Under the terms of the voluntary compliance with Ethical Electric, the company will have to pay the attorney general's office $6,000.