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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.

Pattern of Complaints

Beginning January 2018 up to recently, the BBB of Greater Houston has received multiple complaints and customer reviews that have exhibited the following patterns:

According to consumers’ disputes, it has been alleged that Spark Energy engages in unethical door-to-door sales practices. The sales representatives heavily persuade consumers to sign agreements for a lower rate; however, when they receive their monthly statements, they find that their rates have doubled. In some cases, consumers have stated that the company illegally obtained their account information from previous service providers, and enrolled them in services without a signed agreement. When contacted regarding this issue, consumers report that they were told the cancellation process may take several weeks. Some of these accounts are sent to collection agencies for unpaid bills. Additionally, some consumers report that they were not notified of changes to their account (ex. billing/renewals) as promised.  Complaints state the reps misrepresent which company they work for to obtain a copy of the consumer’s current provider’s bill. They later found out the were switch to Spark Energy without their authorization and their bills have increased.

Consumers also alleged that the company repeatedly calls to solicit them even if they are requested to remove them from their call list. Telemarketers are also verbally misrepresenting they are a supervisor based out of India for the consumer’s current company. When asked to remove the consumer from their call list, they say, “no we will continue to call you until you agree to switch to Spark Energy".

Complaints and reviews were re-reviewed and below are examples of the patterns the company is exhibiting.

Complaints in 2023 stated door to door reps would come to their door stating they were with the consumer’s current REP and needed to see their bill to make sure they were paying the correct amount or if they should be receiving credits. Consumers stated they were dressed in clothes that matched the current company never identifying they were with Spark Energy.

Complaint in 2021 alleged the company "tricked" her 90 year old father with Alzheimer's into switching to their service. When consumer informed company, she has the power of attorney for her father who has been placed in a home and all calls need to come to her, they refused and said the calls would continue.  They would send a bill and continue to call him.

In November 2019, consumers' complaint alleged sales representative standing in front of Kroger switched their carrier without permission based on consumer requesting pricing information.

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The Spark Energy family of brands values each and every customer. We take all complaints received seriously and work diligently to address them all. Spark understands that every situation is different, therefore each requires specific handling and thorough research. Spark has a dedicated team that handles all complaints and the team’s goal is to respond and address them in a timely manner. Sales representatives are expected to adhere to the solicitation laws and regulations of the territory they serve. We encourage consumers to contact us if they have had an interaction with a sales representative that did not meet their expectations or if they have any other account inquiries.

Alert

Spark Energy would like the public to know the following:

Spark Energy has specific requirements for its sales agents, including wearing clothing that clearly identifies the agent as being a Spark Energy representative and that they do not work for any utility. If you believe you have been approached by a sales agent who is misrepresenting their affiliation or have any other issue that needs to be addressed, please contact Spark Energy directly at 877-547-7275 or email at customersuggestions@sparkenergy.com .