ATTORNEY GENERAL RAOUL REACHES $10 MILLION SETTLEMENT AGREEMENT WITH ALTERNATIVE RETAIL ELECTRIC SUPPLIER VENDOR OVER ALLEGED DECEPTIVE MARKETING PRACTICES

ATTORNEY GENERAL RAOUL REACHES $10 MILLION SETTLEMENT AGREEMENT WITH ALTERNATIVE RETAIL ELECTRIC SUPPLIER VENDOR OVER ALLEGED DECEPTIVE MARKETING PRACTICES

September 23, 2024

Chicago - Attorney General Kwame Raoul today announced a $10 million settlement with Teleperformance Colombia SAS, TPUSA Inc., and Teleperformance SE (collectively, Teleperformance). The agreement resolves allegations that the third-party vendor working on behalf of several alternative retail electric suppliers (ARES) deceived customers into switching from their public utility companies to more expensive contracts with ARES.

According to Raoul's office, Teleperformance used deceptive online advertisements that caused consumers to believe they were calling public utility companies Ameren or ComEd. Unbeknownst to consumers, the ads had directed them to call 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 Attorney General's complaint alleges that in addition to utilizing deceptive online advertisements, some of the well over 200,000 phone calls Teleperformance had with Illinois consumers between July 2021 and September 2023 violated the Illinois Telephone Solicitations Act. Teleperformance conducted the calls on behalf of three ARES: Rushmore Energy LLC; Palmco Power IL LLC, d/b/a Indra Energy; and Mega Energy of Illinois LLC.

Attorney General Raoul's office obtained critical injunctive relief in the settlement to prevent the use of such deceptive practices going forward. Under the agreement, Teleperformance will not engage in marketing activities on behalf of ARES in Illinois through July 31, 2026.

Even if Teleperformance resumes marketing in Illinois after that period, it shall not, while marketing for an ARES business:

• Use advertising or marketing that misrepresents, obfuscates or would deceive a reasonable consumer regarding an affiliation with a public utility or the source, sponsorship or other material term of the advertising.
• Solicit Illinois consumers through outgoing telephone calls without inquiring at the beginning of the call whether the consumer consents to the solicitation.
• Solicit Illinois consumers by telephone without stating at the beginning of all calls the name of the sales agent, the registered business name of the entity represented, and that the purpose of the solicitation is to offer to change the supplier of the consumer's electricity.
• Represent, expressly or by implication, that they or any of their ARES clients have an affiliation with an Illinois public utility when that is not true.

Should Teleperformance resume marketing on behalf of ARES in Illinois, it also agrees under the settlement to monitoring by an independent monitor, additional reporting requirements and employee training to prevent future violations of the law.

The settlement is the latest action Raoul has taken to protect Illinois residents from deceptive practices by ARES. In 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 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 pursuing investigations into other ARES.

Attorney General Raoul also initiated the Home Energy Affordability and Transparency (HEAT) Act, which strengthens the oversight of alternative energy suppliers and protects consumers from bad supplier contracts. The HEAT Act went into effect Jan. 1, 2020 and gave the Attorney General's office even 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.