New Jersey Attorney General Gurbir S. Grewal
NEWARK Attorney General Gurbir S. Grewal and the Division of Consumer Affairs today announced that Vivint Solar Developer, LLC has agreed to pay nearly $122,000 in fines and significantly change its business practices to resolve allegations that it engaged in deceptive sales practices, failed to deliver promised energy savings and otherwise violated consumer protection laws in its sales of home solar energy panels in the state.
The Utah-based Vivint, which has entered into more than 16,000 solar contracts with New Jersey consumers since 2011, agreed to uninstall and remove solar panels at no cost from the homes of more than a dozen dissatisfied consumers. The company also agreed to resolve additional consumer complaints, including those received in the future, through binding arbitration if the consumer chooses that option.
Vivint also agreed to develop and implement policies and employee training programs to ensure the company complies with laws protecting consumers from unfair or deceptive conduct in the marketplace.
New Jersey is focused on establishing a path to clean and renewable energy for its residents and securing a sustainable environment for future generations, Grewal said in a release, assuring consumers that the state will crack down on deceptive and fraudulent sales tactics.
The settlement resolves allegations that Vivint falsely represented the savings the customers would realize from solar power, lured them in with low price quotes that later proved to be false, obtained credit reports without their knowledge or consent, required them to sign confusing contracts that violated clearly-established legal rights of consumers, provided poor or inadequate service, and/or performed shoddy installation of the solar panels.
The allegations against Vivint stem from a DCA investigation opened in response to numerous consumer complaints. The investigation sought to determine whether Vivint's conduct in marketing and selling solar energy services in New Jersey violated the state's Consumer Fraud Act, Fair Credit Reporting Act, Plain Language Review Act, Truth-in-Consumer Contract, Notice and Warranty Act, and Contractor Registration Act, and related regulations.
Vivint portrayed itself as an affordable alternative for New Jersey consumers looking to lower their energy bills, but sales reps allegedly misled consumers about solar energy contracts and failed to provide essential information that would have allowed consumers to make informed decisions, DCA Acting Director Paul R. Rodríguez said. This settlement not only holds Vivint accountable for harm suffered by a significant number of New Jersey consumers, it puts measures in place to help ensure that Vivint abides by our consumer protection laws in the future. Just as importantly, it provides an avenue of relief for consumers should the company fall short of these obligations.
Under the terms of a Consent Order, Vivint agreed to make significant changes to its business practices, including revising its advertising and solicitations, general business practices, contracts, customer service practices, monitor sales and revise employee training. It will also employ a full-time compliance officer to ensure adherence to state laws.
Under the terms of the settlement, Vivint has paid the state $121,952.53, of which $69,300 represents civil penalties, with an additional $20,000 of the penalty suspended on the condition that Vivint abides by all the terms of the Consent Order; $35,168.78 represents reimbursement of the division's investigative costs and attorneys' fees, and $17,483.75 represents restitution to two consumers.
Consumers who believe they have been cheated or scammed by a business, or suspect any other form of consumer abuse, can file an online complaint with the State Division of Consumer Affairs by visiting its website or by calling 1-800-242-5846 or 973-504-6200.
