NEWARK, N.J. (Legal Newsline) — New Jersey acting attorney general Christopher S. Porrino has announced Palmco Power NJ LLC and Palmco Energy NJ LLC will pay $5.28 million and revise business practices after allegations of deceptive marketing and failing to provide promised energy rates.
“Palmco portrayed itself as an affordable alternative for New Jersey consumers looking to lower their energy bills, but failed to deliver on its promises,” Porrino said. “Through this settlement, Palmco has agreed to significant revisions in its marketing and sales practices that are intended to ensure that consumers are provided with accurate disclosures as to pricing and not misled.”
Palmco allegedly violated the Electric Discount and Energy Competition Act, the Consumer Fraud Act and multiple regulations when it conducted aggressive door-to-door and telephone solicitations. Additionally, Palmco promised monthly savings but instead delivered monthly charges for gas and electric that were far in excess of what consumers had paid their previous suppliers.
“The Board of Public Utilities is pleased with Palmco’s settlement providing restitution to impacted customers,” said Richard S. Mroz, president of the New Jersey Board of Public Utilities. “The settlement sends consumers the clear message that predatory practices are not tolerated and that a robust market of alternative energy suppliers still exists to provide savings on electric and gas bills.”
Palmco representatives added in later statement that the decision to settle had more to do with the welfare of its customers than on its agreement with the allegations.
"We made a strategic decision to settle this claim, despite our position on it, so that we may move forward and continue to focus our efforts on delivering quality products and services to our customers," a company statement read. "We will continue to adhere to all regulations, and stand by our customers’ legal right to choose their supplier for natural gas and electricity.”