Earlier this month, the Federal Trade Commission (FTC), Consumer Financial Protection Bureau (CFPB), and other agencies including the U.S. Department of the Treasury announced an interagency partnership stepping up efforts to police solar energy sales and financing practices. This initiative comes in response to a significant rise in consumer complaints about deceptive and high-pressure sales tactics, misleading financing offers, and other unethical behaviors in the industry.
In a briefing call, FTC Chair Lina Khan emphasized the importance of allowing consumers to choose solar power without fear of being defrauded or exploited.
The growing enforcement focus builds on previous action by the FTC concerning energy regulation. In October 2023, it partnered with the California attorney general to obtain a settlement that required a clean energy lender to pay $3 million to resolve claims it deceived homeowners about financing home improvements. Additionally, last year, the FTC fined lead generation firm Solar Xchange $13.8 million for sending out pestering calls to people on the National Do Not Call Registry on behalf of a solar panel company.
The FTC published a blog post offering guidance to consumers on how to recognize, avoid and report scams related to clean energy. They also warned businesses that their claims must comply with established consumer protection laws, including unfair and deceptive practices prohibited under the FTC Act and the commission’s new expanded rule to combat government and business impersonation schemes using AI.
Solar lenders and contractors should closely review their business policies, practices, and agreements to ensure compliance with federal and state laws. Because consumer touch points can occur during telephone solicitations, door-to-door sales, or other in-person contact with a business’s employees, contractors, or vendors, it is also of the utmost importance to utilize robust quality control practices to ensure that consumer interactions are consistent with implemented policies and procedures.
Questions on this new enforcement initiative or your business’s marketing practices? We can help. Let’s talk.
* Tori Geller contributed to this article.
A Partner at M&S, Chris advises clients on telemarketing and privacy matters, helping them develop proactive compliance programs and successfully defending them in government enforcement actions, litigation, and class action lawsuits.