Alleged consumer protection violations by Vivint Solar have resulted in a $4.3 million settlement with district attorney’s offices in five California counties, including San Diego.
The case stems from allegations the rooftop solar company materially misrepresented certain terms of power purchase agreements or failed to make adequate disclosures that resulted in consumers being misled.
Under the terms of the settlement, Vivint Solar will pay $1.3 million in civil penalties and investigative costs and establish a $3 million restitution fund to compensate eligible California consumers who entered into power purchase agreements with the company between Aug. 3, 2016, and Oct. 8, 2020.
The complaint was filed in Riverside County Superior Court and was jointly prosecuted by district attorneys in Riverside, San Diego, Alameda, Fresno and San Francisco counties.
Vivint Solar has since been acquired by solar, battery storage and energy services company Sunrun, with Vivint becoming a wholly-owned subsidiary.
Sunrun is not a party to the law enforcement action and prosecutors noted in a news release announcing the settlement that “Vivint Solar and Sunrun and its counsel have worked cooperatively with public agencies to resolve the matter.”
The San Diego District Attorney’s Office said the alleged violations included Vivint misrepresenting its relationship between the company and a local power company, such as “wearing clothing branded with a Southern California utility company.” It did not mention which utility.
Other allegations included:
mispresenting the ability of consumers to cancel their contracts or agreements, and
telling customers their bills would be lower, when in many cases they climbed higher.
“When companies use misleading and aggressive tactics to ensnare customers, as in the case of this solar company, they are engaging in unfair competition and other consumer protection violations and will be held responsible under the law,” San Diego District Attorney Summer Stephan said in a statement.
“The timeframe of the allegations is before Sunrun’s acquisition of Vivint Solar,” Sunrun spokesperson Wyatt Semanek said in an email to The San Diego Union-Tribune. “While Vivint Solar denied any wrongdoing, we are pleased to have resolved this matter with a solution that puts customers first.”
Under the terms of the settlement, Vivint Solar will notify eligible consumers how to submit claims to take part in the $3 million restitution fund, as well as deadlines for making submissions. Information will also be posted on the Vivint Solar Inc. and Sunrun websites by March 5.
“We are committed to complying fully with the agreement to provide notice about the claims process ahead of the deadline and promptly addressing any remaining customer concerns, consistent with Sunrun’s industry-leading consumer protections and customer experience,” Semanek said.
“If you believe that you were a victim … we encourage you to take time, gather information and make a claim,” as allowed in the settlement agreement, said San Diego County Deputy District Attorney Colleen Huschke.
With headquarters in downtown San Francisco, Sunrun touts on its website that the company has 10,800 employees in more than 5,000 cities in 22 states and 46 physical locations.