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Attorney General Raoul sues Spark Energy over alleged deceptive business practices

LEGAL NEWSLINE

Wednesday, January 22, 2025

Attorney General Raoul sues Spark Energy over alleged deceptive business practices

State AG
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Illinois Attorney General Kwame Raoul | Facebook Website

Attorney General Kwame Raoul has initiated legal action against Spark Energy LLC and Spark Energy Gas, accusing the company of deceptive business practices that allegedly misled Illinois consumers. The lawsuit claims Spark enrolled customers in their services without consent, raised electricity rates by over 20% without prior notice, and targeted older consumers with false promises of savings.

Raoul stated, "Companies like Spark must be held accountable for taking advantage of consumers with misrepresentations and false promises of lower prices." He emphasized his office's commitment to safeguarding Illinois residents from such practices.

The complaint outlines several alleged violations by Spark, including unauthorized enrollment in services, failure to obtain consent for telemarketing as per the Telephone Solicitations Act, and altering recordings to obscure deceptive tactics. Other accusations involve significant rate increases without notification and misrepresentation about savings and affiliations with public utilities or government entities.

This lawsuit follows a series of actions by Raoul aimed at protecting consumers from alternative energy suppliers' deceptive practices. In December 2024, a $3.5 million settlement was reached with Palmco Power IL (Indra Energy) for similar allegations. Additionally, a $10 million settlement was achieved in September 2024 with Teleperformance Colombia SAS and others for deceiving customers into switching to costly contracts.

In previous years, Raoul has taken legal steps against other companies like Southeast Energy Consultants LLC and Residents Energy LLC for comparable conduct. His office also filed a lawsuit against Liberty Power Holdings LLC in 2020 for misleading thousands into signing unfavorable contracts.

Raoul's efforts include the introduction of the Home Energy Affordability and Transparency (HEAT) Act, effective January 2020. This act enhances oversight on alternative energy suppliers and equips the Attorney General’s office with tools to combat fraudulent activities.

The case is being managed by Consumer Protection Division Chief Susan Ellis along with Assistant Chief Deputy Attorney General Thomas J. Verticchio and Public Interest Counsel Darren Kinkead. Law firms Edelson PC; Hughes Socol Piers Resnick & Dym Ltd.; and Miner Barnhill & Galland P.C., are assisting in this legal pursuit.

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