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AG Announces $500,000 Settlements Against Supplier Over Deceptive and Unfair Business Practices

In a press release released today, Attorney General Kwame Raoul announced a $500,000 settlement with Rushmore Energy that resolves allegations the alternative retail electric supplier (ARES) engaged in fraudulent, unfair and deceptive business practices to mislead Illinois consumers into paying more for electricity than consumers who stayed with their default public utility.”

“Once approved by the court, the consent order will require Rushmore Energy to pay restitution to eligible Illinois customers who received at least 30 days of residential electricity supply services from the company between Jan. 1, 2020 and Dec. 31, 2024. The restitution amounts will largely be based upon eligible customers’ electricity usage during that period.”

“The Attorney General’s office filed a complaint alleging that Rushmore Energy violated the Illinois Consumer Fraud and Deceptive Business Practices Act by deceptively enrolling consumers in its services, at times charging them electricity rates nearly double the default public utility rate.”

“In addition to restitution, the settlement includes critical injunctive relief to prevent Rushmore Energy from using such deceptive practices going forward. For instance, Rushmore Energy will be banned from marketing activities in Illinois until Dec. 15, 2029, or until the company makes all required payments under the agreement. Rushmore Energy will also be permanently barred from deceptive practices including:

  • Enrolling consumers in Rushmore Energy services without their knowledge or consent.
  • Failing to obtain consumers’ consent to telemarketing solicitations, as required by the Telephone Solicitations Act.
  • Misrepresenting that consumers would save money.
  • Misrepresenting an affiliation with the public utility or government.
  • Unfairly and deceptively obtaining consumers’ account information.
  • Misrepresenting a “price protection” through a state or utility “program.”
  • Failing to disclose new rates and new terms.