ATTORNEY GENERAL RAOUL SUES ALTERNATIVE RETAIL ELECTRIC SUPPLIER FOR DECEPTIVE AND UNFAIR BUSINESS PRACTICES

ATTORNEY GENERAL RAOUL SUES ALTERNATIVE RETAIL ELECTRIC SUPPLIER FOR DECEPTIVE AND UNFAIR BUSINESS PRACTICES

January 16, 2025

Chicago - Attorney General Kwame Raoul today filed a lawsuit against Spark Energy LLC and Spark Energy Gas (Spark) for allegedly using fraudulent, unfair and deceptive business practices to mislead Illinois consumers into paying millions of dollars more for electricity and gas than consumers who stayed with their default public utility.

Raoul alleges that Spark, an alternative retail electric supplier (ARES) and alternative gas supplier, violated the Illinois Consumer Fraud and Deceptive Business Practices Act by enrolling consumers in Spark services without their knowledge or consent, increasing consumers' electricity rates by more than 20% without providing any advance notice and despite promising lower rates and savings, and taking advantage of older consumers.

"Companies like Spark must be held accountable for taking advantage of consumers with misrepresentations and false promises of lower prices," Raoul said. "My office is committed to protecting Illinois consumers from deceptive practices utilized by some alternative energy suppliers and preventing people from overpaying for the energy they need."

The Attorney General's complaint alleges Spark hired sales agents and vendors who engaged in a wide variety of predatory sales tactics to enroll Illinois consumers in its electric and gas supply services.

Raoul's complaint alleges that Spark's fraudulent conduct includes:

• Enrolling consumers in Spark services without their knowledge or consent.
• Failing to obtain consumers' consent to telemarketing solicitations, as required by the Telephone Solicitations Act.
• Altering telemarketing recordings to hide other deceptive sales tactics.
• Unfairly raising consumers' rates significantly and without providing notification.
• Misrepresenting that consumers would save money.
• Misrepresenting that consumers would receive rebates, refunds and gift cards.
• Misrepresenting an affiliation with the public utility or government.
• Unfairly and deceptively obtaining consumers' account information.
• Defrauding older consumers.

The lawsuit is the latest action Raoul has taken to protect Illinois residents from deceptive practices by alternative energy suppliers and their third-party vendors. In December 2024, Raoul announced a $3.5 million settlement with Palmco Power IL, operating under the name Indra Energy, which provided restitution to Indra customers for deceptive business practices. In September 2024, Raoul announced a $10 million settlement with Teleperformance Colombia SAS, TPUSA Inc., and Teleperformance SE. That settlement resolved allegations that the third-party vendor working on behalf of several ARES, including Indra, deceived customers into switching from their public utility companies to more expensive contracts with ARES.

In May 2024, Raoul sued Southeast Energy Consultants LLC (SEC), alleging the third-party vendor working on behalf of several ARES deceived customers into switching from their public utility companies to more expensive contracts with ARES. In 2023, Raoul sued Residents Energy LLC over allegations that the company's telemarketers and in-person sales agents used deceptive and unfair tactics to switch customers from their public utility companies to more expensive contracts with Residents. In 2020, Raoul's office filed a lawsuit against Liberty Power Holdings LLC alleging the company deceived tens of thousands of Illinois residents into signing contracts based on false promises Liberty would save them money on their electricity bills. The Attorney General's office previously settled lawsuits with, or investigations into 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. The Attorney General's office is also continuing to pursue investigations into other ARES.

Attorney General Raoul also initiated the Home Energy Affordability and Transparency (HEAT) Act, which strengthens oversight of alternative energy suppliers and protects consumers from bad supplier contracts. The HEAT Act went into effect in January 2020 and gave the Attorney General's office stronger tools to shut down suppliers that engage in fraudulent and misleading conduct and return money to consumers who have been harmed.

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