Texas AG Launches Solar Panel Fraud Investigation Initiative
Summary
Texas Attorney General Ken Paxton has launched a major initiative to combat fraud by solar panel companies, issuing Civil Investigative Demands (CIDs) to Freedom Forever, SunRun, Lone Star Solar, and CAM Solar. The investigation involves over 100 complaints and targets potential violations of the Deceptive Trade Practices-Consumer Protection Act, including misrepresentations about energy savings, system efficacy, and contract terms.
What changed
The Texas AG has initiated enforcement action against four major solar panel companies (Freedom Forever, SunRun, Lone Star Solar, and CAM Solar) by issuing legally binding Civil Investigative Demands. The investigation focuses on violations of the Texas Deceptive Trade Practices Act, specifically concerning alleged misrepresentations about consumer energy bill savings, solar system efficacy, equipment implementations, and company policies. Over 100 complaints have been filed with the OAG against these companies.
The named companies must respond to the CIDs by disclosing documents related to consumer electricity bill tracking, warranties, service plans, marketing materials, and contract information. Companies engaged in solar panel sales in Texas should review their marketing practices and compliance programs for potential deceptive trade violations. The AG has warned that legal action will be taken against corporations found breaking the law.
What to do next
- Respond to Civil Investigative Demands by disclosing requested documents on savings tracking, warranties, and marketing
- Review marketing materials for potential misrepresentations regarding energy savings and system efficacy
- Audit contract terms and policies for compliance with the Deceptive Trade Practices Act
Source document (simplified)
Attorney General Ken Paxton has launched a major initiative to crack down on companies who sell solar panel systems and are engaging in fraudulent and deceptive practices.
As part of the initiative, Attorney General Paxton has issued Civil Investigative Demands (“CIDs”) to a number of companies such as Freedom Forever, LLC. (“Freedom Solar”), SunRun, Inc. (“Sunrun”), Lone Star Solar Services LLC (“Lone Star Solar”), and CAM Solar Inc. (“CAM Solar”). Collectively, there are over 100 complaints that have been filed with the OAG against these companies, along with thousands more online.
The companies are largely being investigated for violations of the Deceptive Trade Practices-Consumer Protection Act. Some of the companies’ actions being investigated involve misrepresentations regarding savings for consumers on their energy bills, the efficacy of their solar panel systems, equipment implementations, as well as the companies’ terms and policies.
The CIDs require the companies to disclose, among other information, documents regarding how they track changes to electricity bills for consumers using their systems to determine savings, warranties, service plans, marketing materials, and contract information.
“Thousands of Texans have been targeted by companies selling solar panel systems, and it’s imperative that these companies are held responsible for any lies or deceptive marketing they use,” said Attorney General Paxton. “This initiative to stop widespread fraudulent activity in the solar panel industry is only beginning, and my office will take legal action against any corporations breaking the law and scamming Texans.”
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