What is the North American Power scam?


Quick Answer

The North American Power scam refers to the Norwalk, Connecticut-based energy supplier under fire for deceptive sales practices. Common complaints include representatives pretending to be employees of other utility companies, misleading price quotes and neglecting to fully inform customers that their quoted rates include limited-time promotional discounts that expire quickly.

Continue Reading

Full Answer

Founded in 2009, North American Power sells electricity and natural gas to customers in deregulated energy states, while providing renewable energy credits to customers across the country through its certified 'American' Wind program.

A common complaint about North American Power is that the rates quoted in their promotional material are not the rates customers ultimately end up paying for their electricity. While limited-time discounts are common practice in business, many customers have complained that their quoted prices changed almost immediately after service began and they ultimately ended up paying more than they would have with their original provider. It was also found that North American Power failed to provide a “complete and accurate” price description under the 'terms' and 'conditions' sections viewed by customers.

In 2011, the company was fined $100,000 by the Maryland Public Service Commission for 19 counts of deceptive advertising practices, including employees impersonating members of the Public Service Commission to persuade customers to switch providers. As of 2015, the retail energy supplier resumes operations with a reported annual revenue of $256 million.

Learn more about Corporations

Related Questions