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Kansas AG Schmidt Fines Evergy For Misleading Electrical Warranties

  • Kansas AG Derek Schmidt and Sedgwick County District Attorney Marc Bennett reached a settlement with Evergy Kansas Central, Inc., (formerly known as Westar Energy, Inc.), a subsidiary of Evergy, Inc., to resolve allegations that it violated the Kansas Consumer Protection Act.
  • The consent judgment alleges that Evergy Kansas sponsored and approved electrical home warranties that failed to provide a material benefit to consumers, and made material misrepresentations. The consent judgment also alleges deliberate use of ambiguity as to a material fact, and taking advantage of the inability of the consumer reasonably to protect the consumer’s interests because of the consumer’s physical infirmity, ignorance, illiteracy, inability to understand the language of an agreement, or similar factor.
  • Under the terms of the settlement, Evergy Kansas will pay $480,000 to the state of Kansas, as well as $20,000 to reimburse investigation fees. In addition, Evergy Kansas cannot share customer information with a third party, must disclose if it is compensated for the use of its logo, and will not permit third parties to solicit business in a manner that appeared to be from or by Evergy Kansas.