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Illinois AG Reaches $10M Settlement With Teleperformance
A Vendor To Retail Suppliers For Alleged Deceptive Marketing Practices
The Illinois Attorney General announces in an IL AG Press Release that a $10 million settlement Agreement has been reached with Teleperformance Colombia SAS, TPUSA Inc., and Teleperformance SE (collectively, Teleperformance). The agreement resolves allegations that the third-party vendor working on behalf of several alternative retail electric suppliers (ARES) deceived customers into switching from their public utility companies to more expensive contracts with ARES. See Case No. 2024 CH 08323, Cook County, IL Circuit Court.
“These misleading ads targeted Illinois consumers conducting searches using keywords like ‘ComEd customer service’ or ‘Ameren bill pay.’ Instead of reaching those public utilities, individuals were unwittingly walking into a sales pitch for alternative retail electric suppliers,” Raoul said. “My office is committed to protecting Illinois consumers from deceptive practices utilized by some alternative retail electric suppliers and preventing them from overpaying for the energy they need.”
Teleperformance agrees to pay a $10 million judgment to resolve alleged violations arising from advertisements on Google, and sales calls, related to retail energy.
In a news release, the AG’s office alleged, “Teleperformance conducted the calls on behalf of three ARES [retail suppliers]: Rushmore Energy LLC; Palmco Power IL LLC, d/b/a Indra Energy; and Mega Energy of Illinois LLC.”
Note that the news release and the consent decree does not allege any violations tied to specific calls on behalf of, or committed by, any of the suppliers named above.
According to Raoul’s office, Teleperformance used deceptive online advertisements that caused consumers to believe they were calling public utility companies Ameren or ComEd.
Unbeknownst to consumers, the ads had directed them to call Teleperformance sales agents.
Among other things, the Illinois Attorney General alleged that Teleperformance created advertisements on google using terms such as “ComEd customer service” or “Ameren bill pay” which the AG alleged, “obfuscate[d] the source of the ads and … trick[ed] consumers into believing they were calling their public electric utility.”
Calls made in response to such ads were, the AG alleged, connected to Teleperformance for purposes of marketing retail energy supply to the caller.
The AG also alleged violations of the Illinois Telephone Solicitations Act in so far as Teleperformance failed to state the purpose of the call (e.g. a retail energy sales call), or the business being represented on the call, at the beginning of the call.
The AG alleged that TP Colombia engaged in nearly 300,000 telephone solicitations in Illinois on behalf of retail suppliers.
Under the consent decree, Teleperformance also agrees:
- Not market in Illinois through July 31, 2026;
- To the extent it resumes marketing in Illinois, it shall put in place training, record keeping, and auditing practices enumerated in the consent decree; and
- For two years after any resumption of marketing in Illinois, Teleperformance agrees to be monitored by an independent third-party for compliance, who shall report to the AG, with Teleperformance agreeing to pay $250,000 for the costs of such.
