Dive Brief:
- Arizona's attorney general has reached settlements with two solar companies which made thousands of telemarketing calls, misrepresented savings and costs associated with the energy systems, and violated the Federal Trade Commission’s National Do Not Call Registry.
- Going Green Solar LLC will potentially pay more than $250,000 to settle claims it conducted high pressure sales presentations in the homes of potential clients, and sold products that did not result in a reduction of energy bills.
- Stealth Solar LLC faces similar fines for making illegal statements and omissions in both telemarketing calls and in-home sales presentations.
Dive Insight:
Arizona Attorney General Mark Brnovich has in the last month reached settlements with two solar companies operating in the state, potentially with fines in excess of half a million.
Going Green has agreed to pay more than $56,000 to consumers who have not already received restitution, and is required to pay up to an additional $65,000 in restitution for eligible consumers who file a complaint within the next six months. The company must also pay over $17,000 in attorneys’ fees and investigative costs. And finally, Going Green may pay up to $120,000 in civil penalties, but $70,000 is suspended contingent upon the company’s full compliance with the injunction provisions.
As part of the settlement, Going Green is also revising its telemarketing scripts and sales presentations. The attorney general's office received approximately 30 complaints against Going Green from consumers who did not receive the benefits promised by the company’s representatives, and many experienced an increase in their total monthly electricity outlay due to equipment costs.
Stealth and its owners must pay $72,000 in consumer restitution for the current complaint pool, up to an additional $20,000 in consumer restitution for eligible consumers who make a complaint within the next six months, $20,000 in attorneys’ fees and investigative costs, and $160,000 in civil penalties.
The Arizona Attorney General’s Office received approximately 50 consumer complaints against Stealth, for similar reasons as Going Green.