Yet Another Class Action Suit Brought Against Different Retail Supplier

A lawsuit, seeking class action status, has been filed in United States District Court for the Western District of North Carolina against Xoom Energy, LLC and ACN, Inc., and similar to other recent suits against competitors, focuses on the supplier's pricing as compared to its marketing and disclosures.

Citing several statements alleged to be from Xoom's marketing materials, the suit alleges that, "Defendants represent to potential customers, that if they switch to XOOM from their local utilities or other energy suppliers, they will receive a low introductory rate on their energy bill, followed by competitive market-based rates and savings on their energy bills. However, these representations are a bait-and-switch scheme. Following the low introductory rate, Defendants’ energy rates increase dramatically, causing XOOM customers’ electricity bills to rise."

"Defendants’ sales pitch is in reality false and misleading in that the rates actually charged to consumers are not competitive and bear little relation to prevailing market conditions," the suit alleges.

Alleged statements made in Xoom marketing materials cited by the suit include:

• "The power to choose means you can find a company that is willing to provide great customer service and better rates from day one"

• "Competition means you can pay less on your utility bills, and companies now have to earn your business"

"In a short video on their website, Defendants assert that the Simpleflex variable rate has many advantages, including that it 'never be more than the market will bear,' allows 'flexibility to switch,' is 'well worth the reward,' and demands '“no long-term commitment,'" the suit alleges.

The suit further alleges that: "Defendants also advise their IBOs [Independent Business Owners] to advertise to their customers that by switching to XOOM, they will enjoy energy costs savings."

Specific alleged counts in the suit include violation of North Carolina’s Unfair and Deceptive Trade Practices Act; breach of contract; breach of covenant of good faith and fair dealing; common law fraud, including fraudulent inducment, and fraudulent concealment; negligent misrepresentation; and unjust enrichment

Case 3:14-cv-00562-GCM

Xoom Energy said that its policy is not to comment on litigation