GOVERNMENT TURNING UP THE HEAT – FTC & CFPB Increase Scrutiny On Solar Energy Sales Practices
FTC, CFPB Heightens Scrutiny on Solar Energy Sales
The Federal Trade Commission (FTC) and the Consumer Financial Protection Bureau (CFPB) are ramping up their efforts to protect consumers from fraudulent and predatory practices in the rapidly growing solar energy industry. This increased scrutiny underscores the need for consumers to be vigilant when considering solar energy options and to seek legal guidance if they believe they have been misled or defrauded.
The FTC and CFPB’s Focus on Solar Energy Sales
In August 2024, the FTC and CFPB, along with other federal agencies, announced a new partnership to closely monitor the solar energy sector. This initiative was sparked by a significant rise in consumer complaints regarding deceptive sales practices, misleading financing offers, and other unethical behaviors in the industry. As solar energy becomes more popular among homeowners, bad actors are taking advantage of this demand, employing high-pressure sales tactics, misrepresenting tax credits, and failing to deliver promised systems.
FTC Chair Lina Khan emphasized the importance of allowing consumers to choose solar power without fear of being defrauded or exploited. The FTC has a history of targeting unscrupulous companies in the clean energy space, including recent actions against a lead generation firm for making illegal telemarketing calls on behalf of a solar company.
Similarly, the CFPB has highlighted the dangers of predatory lending within the solar energy industry, noting that some companies use manipulative sales techniques to push consumers into expensive loans that jeopardize their financial well-being. CFPB Director Rohit Chopra stressed the need for increased consumer protection to prevent these predatory practices from undermining the growth of residential solar programs.
Available Legal Options for Victims of Solar Energy Fraud
If you’ve been a victim of deceptive solar energy sales practices, you have several legal avenues to pursue justice and compensation. Below are some of the key legal options available to you under California law:
Consumers Legal Remedies Act (CLRA)
The Consumers Legal Remedies Act (CLRA) is a powerful tool for consumers who have been defrauded or deceived by businesses. Under the CLRA, it is unlawful for businesses to engage in a variety of deceptive practices, including misrepresenting the source, quality, or nature of goods or services, such as solar energy systems. If a solar company has misled you about the benefits, costs, or financing of a solar energy system, you may have a claim under the CLRA. Remedies under the CLRA can include actual damages, punitive damages, and attorney’s fees, making it an essential statute for consumer protection.
California Identity Theft Act (CITA)
The California Identity Theft Act (CITA) provides recourse for individuals whose personal information has been misused by fraudulent actors, including those in the solar energy industry.
For example - have you discovered a new solar loan on your credit report that you never signed up for?
If a solar company has unlawfully used your personal information, such as your credit history or identity, in connection with a deceptive sales or financing scheme, you may have a claim under CITA. This act allows victims to recover damages, seek injunctive relief, and even recover attorney’s fees. Given the prevalence of identity theft in fraudulent financing practices, CITA can be a critical statute for holding bad actors accountable.
Home Solicitation Sales Act (HSSA)
The Home Solicitation Sales Act (HSSA) is particularly relevant for consumers who have been pressured into solar energy contracts through aggressive door-to-door sales tactics. The HSSA provides consumers with the right to cancel a contract within a specified period if the sale was made at their home or another non-business location. If you were subjected to high-pressure sales tactics at your doorstep and regretted the decision afterward, the HSSA could allow you to void the contract and seek restitution. This act is especially important in cases where consumers were not given adequate information or were misled about their right to cancel.
Special Legal Protections for Seniors in Solar Energy Fraud Cases
Seniors are often targeted by unscrupulous solar energy companies due to perceived vulnerabilities, making it especially important for older consumers to be aware of their legal rights. California law provides additional protections for seniors, ensuring they have the necessary legal tools to fight back against deceptive and predatory practices. Here are some of the key legal options available for seniors who have been victims of solar energy fraud:
Enhanced Protections Under the Consumers Legal Remedies Act (CLRA)
The Consumers Legal Remedies Act (CLRA) offers heightened protections for seniors aged 65 and older. When a business commits unfair or deceptive practices against a senior, the CLRA allows for additional remedies, including enhanced damages. This is particularly relevant in cases where a solar company has misrepresented the costs, benefits, or financing terms of a solar energy system to a senior consumer. Seniors who have been misled may recover not only the actual damages but also additional penalties designed to deter future misconduct by companies targeting older individuals.
Elder Abuse and Dependent Adult Civil Protection Act (EADACPA)
The Elder Abuse and Dependent Adult Civil Protection Act (EADACPA) is a critical statute that protects seniors from various forms of financial abuse, including fraud and deceptive sales practices. Under EADACPA, seniors who have been subjected to fraudulent solar energy sales tactics can seek legal recourse for financial abuse. This act provides for the recovery of damages, attorney’s fees, and in some cases, punitive damages. EADACPA is an essential tool for seniors who have been taken advantage of by solar companies that prey on their vulnerability.
Home Solicitation Sales Act (HSSA) with Senior-Specific Provisions
While the Home Solicitation Sales Act (HSSA) provides all consumers with the right to cancel a contract signed at their home, seniors may have additional protections under this act. Given that seniors are often targeted by aggressive door-to-door sales tactics, the HSSA can be particularly powerful for older consumers who were pressured into signing a solar contract without fully understanding the terms or were misled about their right to cancel. Seniors may have extended timeframes to cancel contracts under certain conditions, ensuring they are not unfairly bound by contracts signed under duress or deception.
Why Seniors Should Seek Help From A California Solar Fraud Lawyer
Seniors who have been victims of solar fraud face unique challenges, but they also have powerful legal tools at their disposal.
At R23 Law, we understand the specific needs of senior clients and are dedicated to providing them with the strongest possible representation. Our team is experienced in leveraging the protections offered by the CLRA, EADACPA, and HSSA to ensure that senior consumers are protected and compensated for any wrongdoing.
Why You Need a California Solar Fraud Lawyer
Given the federal government’s intensified focus on the solar energy industry, it is more important than ever for consumers to be aware of their rights. If you believe you have been the victim of deceptive solar sales practices or predatory financing, it is crucial to consult with an experienced California Solar Fraud Lawyer. At R23 Law, we specialize in protecting consumers from fraudulent business practices, including those prevalent in the solar industry.
Our California Solar Fraud Lawyers are well-versed in the legal landscape surrounding solar energy sales and financing, and we are committed to holding bad actors accountable. We understand the complexities of these cases and will work tirelessly to ensure you receive the justice and compensation you deserve.
Take Action NOW
The FTC and CFPB’s crackdown on the solar energy industry serves as a critical reminder that consumers must be vigilant when navigating the complexities of solar energy sales. If you suspect that you have been misled, defrauded, or pressured into a bad deal, don’t hesitate to reach out to a skilled California Solar Fraud Lawyer at R23 Law.
We are here to provide you with the legal support you need to protect your rights and your financial future. Contact us today for a consultation and let us help you navigate the path to justice.
