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Spark Energy Facing Allegations of 'Bait-and-Switch' Scheme

A New Jersey woman has filed a proposed class action lawsuit against defendant Spark Energy, LLC claiming the energy provider uses a “bait-and-switch” scheme to persuade consumers into doing business with it and then charging them “exorbitant” rates for electricity. The plaintiff argues that she switched from her local utility to Spark because it was offering a lower fixed rate. She was informed that she would be paying a “variable market rate” after one year, meaning the rate would change based on competitors’ pricing and wholesale costs, according to the complaint. However, the plaintiff found that Spark’s prices after one year were allegedly much higher than its competitors’ and did not fluctuate based on market changes. The suit claims Spark charged an average of 105% more for electricity than local utility companies. According to the complaint, the plaintiff and proposed class members “suffered ascertainable loss” as a result of the defendant’s “false, deceptive, and misleading statements.”

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