CHICAGO — The state of Illinois and Sperian Energy Corp., (Sperian) have reached a $2.65 million settlement to resolve the state's allegations that the alternative retail electric supplier defrauded residents with deceptive marketing.
According to a lawsuit filed by the Illinois Attorney General's Office, Sperian failed to disclose the price, length and monthly fee that were in customers' contracts. The company gave customers a false impression they were signing up for discounted ComEd rates and would save money through a false "energy choice program," the Attorney General's Office said.
“My settlement with Sperian Energy refunds all Illinois customers deceived by the company’s fraudulent marketing,” Illinois Attorney General Lisa Madigan said in a statement. “Alternative retail electric suppliers have a terrible track record of deceptive marketing tactics and selling overpriced electricity.
"This settlement is another step in reforming the ARES industry that the legislature should ban in the residential market."
The settlement includes more than 60,000 Illinois customers receiving $2.65 million in refund amounts based on the customer's electricity usage, according to Madigan's office. Sperian is also banned from marketing to Illinois customers for an additional two years and charging existing or new customers monthly service fees for five years.
In addition, Sperian must allow customers to cancel their service without penalty, the Attorney General's Office said.