HARRISBURG, PA — Pennsylvania Attorney General Michelle Henry announced a recent settlement with Inspire Clean Energy, a California-based energy provider accused of misleading practices. The settlement culminates an investigation by the Office of Attorney General into allegations that Inspire representatives deceptively enrolled consumers into service agreements under the guise of participating in surveys or signing up for mailing lists.
The investigation uncovered troubling practices where consumers were led to believe they were engaging with Inspire for informational purposes about clean energy. Contrary to these representations, they were unwittingly enrolled in energy services, often under the pretext of promised savings. However, many consumers experienced increased energy costs instead. Such deceptive marketing tactics prompted action from the Attorney General’s office, emphasizing the need for transparency and accountability in consumer interactions.
As part of the settlement, Inspire Clean Energy has agreed to a total monetary obligation of $250,000, which includes $150,000 earmarked for consumer restitution. This financial remedy aims to compensate those affected by the misleading practices and ensure future conduct aligns with consumer protection standards.
Attorney General Henry underscored the importance of the settlement, stating, “This settlement protects Pennsylvanians from being duped by Inspire representatives who try to sell service packages disguised as surveys and mailing lists. Any company that misleads Pennsylvania consumers about essential services, such as electricity, will be held accountable.” This statement reflects the office’s commitment to safeguarding consumer interests against deceptive business practices.
Further findings from the investigation revealed that some Inspire representatives allegedly misrepresented affiliations, claiming ties to government entities or other utility companies, and engaged in unauthorized actions such as photographing consumers’ electric bills without consent. These actions prompted a need for stringent corrective measures within the settlement framework.
The terms of the settlement, formalized in an Assurance of Voluntary Compliance, mandate several key provisions to enhance consumer protection. Inspire is required to secure express informed consent before enrolling any consumer in its electric services. Additionally, Inspire must transparently disclose all material terms relating to its services, including cancellation policies, pricing, and the terms of any trial periods. To ensure compliance, the company must also develop and implement comprehensive training and oversight mechanisms for its representatives.
This settlement was filed in the Philadelphia County Court of Common Pleas and overseen by Senior Deputy Attorney General Jim Wise.
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