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Sitting Ducks: Now Class Action Suits Targeting Retail Suppliers Over Alleged Do Not Call Violations

December 3, 2014

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Copyright 2010-14 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

It appears that the polar vortex has made the trial lawyer community aware of the competitive retail energy supplier industry, and the industry now serves as a perpetual target for class action lawsuits, as the latest development is similar suits filed against multiple retail suppliers over alleged Do Not Call violations.

Prior to the polar vortex, most civil actions involving retail suppliers involved specific contractual disputes with a single customer. Class action suits were rare, though there were a few, with most stemming from plaintiffs challenging the MLM business model, though there was one notable class action suit over market pricing prior to the polar vortex.

Since the polar vortex, however, there has been an explosion in suits filed against retail suppliers. As previously reported, the initial suits dealt with specific marketing claims alleged to have been made by certain suppliers, versus the rates ultimately charged to customers. Due to the cavalier nature with which some suppliers used terms such as "low" [rate] and "save", these suits have legs, though suppliers' ultimate culpability rests with the courts.

After this initial spate of suits related to marketing terms, plaintiffs more broadly filed suit against retail supplier pricing in cases where suppliers promote pricing as "market based," with the suits alleging that since pricing deviated from a narrow and unrealistic definition of the market price (utility SOS rate or non-load following/all requirements spot wholesale pricing), customers were defrauded.

The latest target for plaintiffs is Do Not Call violations, with at least two suits seeking class action status filed against retail suppliers in U.S. District Court For The Northern District Of Illinois concerning alleged Do Not Call violations.

In each suit, one filed against Starion Energy and a separate suit filed against Santanna Energy Services, the initial complaint includes a single plaintiff that alleges that the supplier violated the federal Telephone Consumer Protection Act by conducting a telemarketing call to the plaintiff's landline, which was on the Do Not Call Registry.

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