Utility company Just Energy, who tried to sign up Jamaica Plain customers in 2010, has agreed to pay $4 million to settle allegations of deceptive marketing.
Attorney General Martha Coakley announced last week that Just Energy will pay a total of $4 million, including $3.8 million to an independent trust fund for purposes of making payments of restitution to certain consumers, and $200,000 to the Commonwealth.
The AG’s Office alleges that Just Energy, through a third-party telemarketing vendor and door-to-door agents, engaged in deceptive marketing and sales that misled consumers into signing contracts based on low introductory pricing, only to later increase their costs.
Stonybrook-area resident Bill Mitchell received a knock from Just Energy’s representatives back in 2010.
“It seemed to be enough of a scam that I didn’t want to sign up anytime soon,” Mitchell told the Gazette at the time.
He told the Gazette last week that he reported the incident to Coakley’s office, but was met with “complete lack of interest.”
“They were not proactive about it,” he said. “They said that if they got enough complaints, they would look into it. They could’ve saved a lot of people a lot of trouble.”
But, Mitchell said, he’s glad Coakley got the result she did all the same.
Asked for comment, Coakley’s office only directed the Gazette to its website.
“We allege this competitive supplier engaged in widespread and misleading conduct that lured consumers into costly contracts in the form of high electricity rates and termination fees,” Coakley said in a release.
According to the settlement, Just Energy sales representatives allegedly failed to disclose complete and accurate pricing information to its customers by promising savings or representing that they could help consumers keep their electricity bills low. Instead, consumers were charged rates that were higher than the rates for the electricity supply provided by NSTAR and National Grid. Just Energy also allegedly induced elderly and non-native-English-speaking consumers by continuing to offer electricity supply services even after it became clear that they did not understand the terms of the proposed contract.
Consumers were allegedly switched from their distribution company to Just Energy without their authorization. Termination fees worth tens of thousands of dollars were allegedly charged to small business owners, even though they were never previously advised of the charges.
According to that release, the AG’s Office has received more than 100 consumer complaints about Just Energy.
A Gazette call to Just Energy was not immediately returned.