Business ProfileforMajor Energy Services, LLC

The parent company for Major Energy Services LLC is Spark Energy L.P., which was the subject of a pattern of complaint for misrepresentation in selling practices. BBB has a separate Business Profile on Spark Energy L.P.:   https://www.bbb.org/houston/business-reviews/electric-companies/spark-energy-l-p-in-houston-tx-16001992

Illnois AG Files Lawsuit Against Alternative Retail Electic Supplier, Major Energy Services LLC, for Luring Customers into Expensive Contracts

The following describes a pending government action that has been formally brought by a government agency but has not yet been resolved. We are providing a summary of the governments allegations, which have not yet been proven.

On April 9, 2018, Illinois Attorney General Lisa Madigan announced the filing of a lawsuit against Major Energy Electric Services LLC (Major Energy), an alternative retail electric supplier (ARES), for misleading thousands of Illinois customers about the company’s costly electricity contracts using high-pressure sales tactics to push people to enroll without explaining the service or the costs. Madigan was joined by consumer advocates with AARP, the Better Business Bureau and U.S. PIRG to announce her lawsuit.

The deceptive sales pitches have resulted in nearly all Major Energy customers consistently paying higher rates for electricity. Since April 2012, Major Energy customers have paid nearly $2.5 million more in rates and extra fees than they would have paid if they had remained with the regulated utility.

Madigan’s lawsuit, filed in Cook County Circuit Court, alleges that Major Energy and its sales representatives used aggressive and deceptive sales tactics to enroll customers in the ComEd territory into expensive contracts for electricity. Major Energy sales agents failed to tell customers critical information, including the price and length of the contracts and that customers would be charged a monthly fee. Madigan alleged many customers were given the false impression they were signing up for a discounted rate from ComEd when in reality, they were switched to Major Energy, where they routinely paid higher prices for their electricity.

Madigan’s lawsuit stems from Major Energy’s sales pitches, delivered mainly through telemarketing calls and door-to-door sales, which misinformed customers that the company would give them a lower rate because of changes to the law due to deregulation. Madigan’s suit alleges that company sales representatives made no effort to accurately describe the product in the sales pitch. Instead, Major Energy sales representatives offered to apply a “rate reduction” and spoke in ambiguities to confuse consumers into thinking that Major Energy is somehow affiliated with ComEd. The sales representatives employed the deceptive tactics in order to obtain the customer’s account number and then push them into an automated third-party verification to complete the transaction—at times without the consumer even knowing that they had been sold anything.

Madigan’s lawsuit also alleges Major Energy sales agents aggressively contacted consumers who had previously canceled Major Energy’s service through “win-back” calls in which sales representatives tell people they have been “illegally switched” to a different supplier and then switch them back to Major Energy without fully explaining the terms and conditions. Madigan also alleges that Major Energy sales representatives misrepresented the applicable ComEd rate and failed to inform customers that fixed rates only applied for a certain period of time, after which the customer would be switched to a month-to-month variable rate plan that was far more expensive.

Madigan’s office is asking the court to provide full restitution of nearly $2.5 million to impacted consumers and to revoke Major Energy’s license to do business in the state of Illinois.