Just Energy’s ‘Deceptive’ Business Practices Spark Lawsuit in New York

New to ClassAction.org? Read our Newswire Disclaimer

Just Energy Group Inc. and Just Energy New York Corp. are the defendants in a proposed class action lawsuit that claims they use deceptive marketing tactics and low introductory “teaser” rates to convince customers to switch to their services before significantly raising their rates without notice. The two named plaintiffs say they signed contracts with Just Energy after they were promised savings on their energy bills, but instead were overcharged for the defendants’ services, with one plaintiff claiming she spent at least $2,000 more than she would have paid with her former utility providers.

The suit centers around claims that the defendants promise false and deceptive initial prices to prospective customers without disclosing that the rates are variable or when they will expire. Once the introductory period is over, the complaint claims, customers’ rates are raised to be “consistently higher” than the prices charged by their previous utility providers.

The complaint references at least six other lawsuits and/or fines that the defendants have faced since 2003, including a settlement with the Massachusetts Attorney General in December 2014 that put to rest allegations the suit says were “strikingly similar” to the claims at issue in this complaint. The settlement reportedly required the defendants to pay $4,000,000 to Massachusetts customers and correct their allegedly deceptive business practices.