Tag Archive for: unfair business practices

Photo of a consumer with a credit card and cell phone.

DA Doubles Down on Consumer Protection

San Diego County District Attorney Summer Stephan today recognized National Consumer Protection Week (March 1 – March 7), and said her office is doubling down on its commitment to protecting consumers and is reminding residents that speaking up about scams, fraud, and unfair business practices helps protect the entire community.

“Consumer protection is about standing up for everyday people who were misled, overcharged, or taken advantage of,” said Summer Stephan. “When a company breaks the law, the harm is not abstract — it affects families who trusted what they were told and worked hard for their money. Our Consumer Protection Unit fights to hold companies who sideline the rules to unfairly enrich themselves accountable and to recover money for the people who were harmed. Our team of specialized prosecutors and investigators fights against big companies with armies of lawyers and win the battles for our everyday neighbors.”

“But these cases often begin with one person speaking up. A retiree who feels something isn’t right, a small business owner who notices a deceptive practice, or a neighbor who refuses to stay silent after being misled. During National Consumer Protection Week, I want everyone in San Diego County to know that your voice matters. When you report wrongdoing, you help us uncover patterns of misconduct, stop bad actors, and protect thousands of other consumers from being harmed.”

The District Attorney’s Consumer Protection Unit investigates unlawful business practices, and environmental abuses and pursues both civil and criminal cases against companies and individuals who defraud consumers. These actions can lead to restitution for victims, financial penalties for violators, and criminal charges when appropriate.

Recently, the DA’s Office secured a major consumer protection victory in a multi-county enforcement action involving Vivint Solar. The company agreed to a $4.3 million settlement, including a $3 million restitution fund for eligible consumers who lost money under certain solar power purchase agreements. This case demonstrates how enforcement actions can provide real financial relief for consumers harmed by deceptive practices.

The DA’s Consumer Protection Unit works to safeguard consumers and honest businesses by investigating and prosecuting unlawful business practices. The unit handles cases involving:

  • Scams targeting seniors, investigated through a first of its kind in the nation specialized Elder Justice Task Force
  • False or misleading advertising
  • Cyber scams, handled by the office’s specialized CATCH cybercrime team
  • Unfair pricing or billing practices, including those that occur after natural disasters
  • Deceptive contract terms or sales tactics including automatic renewal charges and scary debt collection tactics
  • Environmental violations, such as illegal disposal of toxic waste

Over the past year, the District Attorney’s Consumer Protection Unit has taken significant action against businesses that violated consumer protection laws, including:

  • More than $13.6 million in consumer protection judgments against multiple companies
  • Criminal fraud charges filed against a business owner who cheated customers
  • A $1 million settlement for overcharging consumers at the point of sale
  • A $3 million consumer restitution fund secured in the Vivint Solar case

These outcomes reflect meaningful consequences for businesses that break the law and real relief for consumers who have suffered financial harm.

Most consumer protection investigations begin with a complaint from a member of the public. When residents report suspicious business practices, it helps investigators identify patterns of misconduct that might otherwise go unnoticed. While the District Attorney’s Office cannot act as a private attorney for individual disputes, consumer complaints frequently form the basis for broader enforcement actions that protect thousands of people.

Residents who believe they have been misled or harmed by a company are encouraged to report it. To file a consumer complaint:

Submit a complaint online:

https://www.sdcda.org/preventing/consumer-protection/

Call: (619) 531-3507

Email: consumer@sdcda.org

Photo of a gavel over law books and scales of justice.

Vivint Solar to Pay $4.3 Million Consumer Settlement for Misleading Customers

San Diego County District Attorney Summer Stephan, along with four other California prosecutors’ offices, has secured a $4.3 million settlement with Vivint Solar, Inc. and its related entities to resolve consumer protection violations involving the company’s solar power purchase agreements (PPAs). The settlement stems from allegations tied to residential solar installation and energy contracts that VivintSolar entered into with California consumers between August 2016 and October 2020.

The complaint, filed in Riverside County Superior Court, alleges that in advertising and promoting its solar energy systems and the terms of the PPAs, Vivint Solar misrepresented the agreements or failed to make adequate disclosures to avoid misleading consumers.

“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,” DA Stephan said. “Many of these companies commit the same violations across the state and being able to leverage our office’s statewide consumer protection partnerships allows us to do more to protect San Diegans. One of the most beneficial aspects of this case is the availability of $3 million for consumers to request reimbursement of losses they suffered. I am grateful to our Consumer Protection Team for holding businesses accountable and obtaining justice for consumers.”

Examples of Vivint Solar’s alleged violations include:

  • Misrepresenting the relationship between Vivint Solar and the local utility company, including wearing clothing branded with a Southern California utility company.
  • Misrepresenting energy or cost savings by telling consumers their bills would be lowered, when in many cases they climbed higher.
  • Misrepresenting consumers’ ability to cancel the contract or agreement in question.

In the final judgment, Vivint Solar is prohibited from engaging in unfair, illegal or fraudulent business practices related to its solar energy systems, including:

    • Making any false statement about the company’s relationship with a local utility, energy savings a customer might expect to receive, or a customer’s ability to cancel the contract.
    • Requesting, ordering, or otherwise obtaining a consumer credit report in connection with a consumer’s application for a loan or credit without first obtaining the consumer’s written consent.
    • Creating accounts related to the purchase, installation, servicing, or lease of any Solar Energy System without first obtaining the consumer’s written consent.
    • Failing to provide translations of written contracts related to the purchase, installation, servicing, or lease of any Solar Energy System in the language in which the contract was negotiated before the execution of such contract; and
    • Enforcing a liquidated damages provision in its agreements or contracts, including but not limited to a Vivint Solar PPA, that does not comply with the provisions of Civil Code section 1671 and California case law interpreting that statute.

Under the terms of the judgment, which was entered without admission of liability, Vivint Solar will pay a total of $1.3 million in civil penalties and investigative costs. It will also establish a restitution fund of $3 million to cover valid requests for restitution from a California consumer regarding solar energy systems sold by VivintSolar or the terms of any Vivint Solar PPA that fall between August 3, 2016, and October 8, 2020. On October 8, 2020, Vivint Solar became a wholly owned subsidiary of Sunrun, Inc. (“Sunrun”). Sunrun is not a party to this law enforcement action.

Notification to California consumers of the provisions of the Stipulated Judgment, including time limitations on making a claim and methods to submit a claim for restitution, will be provided by Vivint Solar and available on the consumer-facing website of VivintSolar, Inc. and Sunrun. Vivint’s other entities included in the settlement are Vivint Solar Holdings, Inc. and Vivint Solar Developer, LLC (“Vivint Solar”).

The case was jointly prosecuted by the District Attorneys of San Diego, Riverside, Alameda, Fresno and San Francisco. The prosecutors noted that Vivint Solar and Sunrun and its counsel have worked cooperatively with the public agencies to resolve the matter.

Deputy District Attorney Colleen Huschke prosecuted this case for the District Attorney’s Office.