AG Henry Reaches Settlement with California-Based Energy Provider that Allegedly Misled Pennsylvanians into Service Agreements

Attorney General Michelle Henry announced a settlement with Inspire Clean Energy that will require the California-based energy provider to pay restitution for misleading consumers into service agreements, in addition to other monetary relief.

The Office of Attorney General’s investigation revealed that Inspire representatives allegedly told consumers they were merely participating in a survey or signing up for a mailing list to receive information about clean energy, when in fact they were being enrolled in Inspire’s energy services. Some consumers were promised savings but then typically faced higher energy costs from Inspire.

The settlement requires Inspire to pay $250,000 — with $150,000 to go toward consumer restitution — and to make clear disclosures when contacting potential customers.

“This settlement protects Pennsylvanians from being duped by Inspire representatives who try to sell service packages disguised as surveys and mailing lists,” Attorney General Henry said. “Any company that misleads Pennsylvania consumers about essential services, such as electricity, will be held accountable.”

According to the investigation, some consumers even reported that Inspire’s representatives told them they were affiliated with the government or with a different utility company and that Inspire representatives photographed consumers’ electric bills without consent.

The settlement, in the form of an Assurance of Voluntary Compliance that has been submitted for filing, requires Inspire to, among other things:

• Obtain express informed consent from a consumer prior to enrolling the consumer in any of Inspire’s electric services.
• Clearly and conspicuously disclose all material terms of Inspire’s services to consumers including, but not limited to, terms pertaining to cancellation policies, pricing and rates, and the presence, purpose, and effect of trial periods.
• Create and implement training and oversight reasonably necessary to ensure that its representatives comply with the settlement and with applicable consumer protection laws.

This investigation was handled by Senior Deputy Attorney General Jim Wise resulting in the settlement being filed in the Philadelphia County Court of Common Pleas.

Original source can be found here.