Illinois Attorney General Kwame Raoul has announced a $10 million settlement with Teleperformance, the collective name for several related entities, over allegations of deceptive marketing tactics used to persuade consumers to switch from their existing public utility providers to alternative retail electric suppliers (ARES). According to details of the settlement, it appears that Teleperformance misled customers through online ads that erroneously depicted an affiliation with established utilities Ameren or ComEd, when in fact, callers were funneled into sales environments pushing ARES contracts.
"These misleading ads targeted Illinois consumers conducting searches using keywords like ‘ComEd customer service’ or ‘Ameren bill pay’," Raoul said, in a statement obtained by the Illinois Attorney General's office. Critically, the settlement also includes injunctive relief that halts Teleperformance from engaging in marketing activities for ARES in Illinois through July 31, 2026.
The Attorney General’s complaint further detailed that Teleperformance inadequately identified itself during over 200,000 phone calls with Illinois consumers, in violation of the Illinois Telephone Solicitations Act. The company performed these calls on behalf of ARES such as Rushmore Energy LLC; Palmco Power IL LLC, doing business as Indra Energy; and Mega Energy of Illinois LLC. Going forward, should the company resume its marketing endeavors for ARES in Illinois, it will be required to adhere to stringent guidelines that include identity disclosure and consumer consent prior to solicitation.
Noteworthy, is the pattern of actions led by Raoul to safeguard Illinois citizens from deceptive ARES tactics. Previous legal skirmishes include lawsuits against Southeast Energy Consultants LLC, Residents Energy LLC, and Liberty Power Holdings LLC for similar deceptive practices. The HEAT Act, initiated by Raoul's office, became enforceable on January 1, 2020, galvanizing the state's position against misleading energy supply contracts and conferring additional authority to the Attorney General to protect consumers and procure refunds for them.
Handling the case for Raoul's office are Consumer Protection Division Chief Susan Ellis, Assistant Chief Deputy Attorney General Thomas J. Verticchio, and Public Interest Counsel Darren Kinkead with the collaboration of several Illinois-based law firms. This settlement with Teleperformance is an extension of the Attorney General's ongoing commitment to impede the spread of misleading marketing strategies within the alternative energy sector and to foster transparency for Illinois energy consumers.
