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Friday, September 27, 2024

Illinois AG reaches $10 million settlement over alleged deceptive marketing practices

State AG
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Illinois Attorney General Kwame Raoul | Facebook Website

Attorney General Kwame Raoul has announced a $10 million settlement with Teleperformance Colombia SAS, TPUSA Inc., and Teleperformance SE. This agreement addresses allegations that the third-party vendor misled customers into switching from their public utility companies to more expensive contracts with alternative retail electric suppliers (ARES).

Raoul's office claims that Teleperformance used deceptive online advertisements, causing consumers to believe they were contacting public utility companies Ameren or ComEd. Instead, these ads directed them to Teleperformance sales agents.

“These misleading ads targeted Illinois consumers conducting searches using keywords like ‘ComEd customer service’ or ‘Ameren bill pay.’ Instead of reaching those public utilities, individuals were unwittingly walking into a sales pitch for alternative retail electric suppliers,” Raoul said. “My office is committed to protecting Illinois consumers from deceptive practices utilized by some alternative retail electric suppliers, and preventing them from overpaying for the energy they need.”

The complaint alleges that more than 200,000 phone calls made by Teleperformance between July 2021 and September 2023 violated the Illinois Telephone Solicitations Act. These calls were conducted on behalf of three ARES: Rushmore Energy LLC; Palmco Power IL LLC, d/b/a Indra Energy; and Mega Energy of Illinois LLC.

As part of the settlement, Teleperformance will not engage in marketing activities on behalf of ARES in Illinois through July 31, 2026. If it resumes marketing after this period, it must adhere to several conditions:

- Avoid advertising or marketing that misrepresents an affiliation with a public utility.

- Inquire at the beginning of calls whether the consumer consents to solicitation.

- State at the beginning of all calls the name of the sales agent, the registered business name represented, and that the purpose is to offer a change in electricity supplier.

- Not imply any affiliation with an Illinois public utility when it is not true.

Teleperformance also agrees to monitoring by an independent monitor, additional reporting requirements, and employee training if it resumes marketing for ARES in Illinois.

This settlement follows other actions taken by Raoul against deceptive practices by ARES. In 2024, he sued Southeast Energy Consultants LLC (SEC) for similar allegations. In 2023, he sued Residents Energy LLC over accusations of unfair tactics. In 2020, his office filed a lawsuit against Liberty Power Holdings LLC for allegedly deceiving residents about potential savings on electricity bills. Previous settlements have been reached with Major Energy Electric Services LLC, Eligo Energy IL LLC, Realgy LLC, Atlantic Energy MD LLC, Palmco Power IL LLC, IDT Energy INC., Sperian Energy Corp., and Mega Energy of Illinois.

Raoul also initiated the Home Energy Affordability and Transparency (HEAT) Act to strengthen oversight of alternative energy suppliers and protect consumers from bad contracts. The HEAT Act went into effect on January 1, 2020.

Consumer Protection Division Chief Susan Ellis, Assistant Chief Deputy Attorney General Thomas J. Verticchio, and Public Interest Counsel Darren Kinkead are handling this case for Raoul’s office. They are assisted by Illinois-based law firms Edelson PC; Hughes Socol Piers Resnick & Dym Ltd.; and Miner Barnhill & Galland P.C.

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