Alleged Deceptive Conduct Sparks Illinois Suit Against Residents Energy

  • Illinois AG Kwame Raoul filed a lawsuit against Residents Energy, LLC, alleging that the alternative retail electric supplier violated the Illinois Consumer Fraud and Deceptive Business Practices Act, as well as the Illinois Telephone Solicitations Act, by using deceptive and unfair tactics to switch consumers from public utility companies to more expensive contracts with Residents Energy.
  • According to the complaint, Residents Energy’s sales representatives made false promises of low rates and savings, when in fact customers who switched to Residents Energy almost always paid higher rates than those offered by public utility companies. The sales agents allegedly concealed the fact that quoted low rates were only first-month, introductory rates, and some of Residents Energy’s customers allegedly paid more than twice their public utility company’s rate after the end of the first month. In addition, some consumers allege that they were switched to Residents Energy without consent, despite never having any contact with Residents Energy’s representatives.
  • AG Raoul seeks a permanent injunction preventing any future violations of the Consumer Fraud Act, restitution, and civil penalties.