The U.S. Department of the Treasury, the Consumer Financial Protection Bureau (CFPB), and the Federal Trade Commission (FTC) have announced actions to address unfair and deceptive consumer acts and practices in the residential solar industry. The Treasury Department, the CFPB and the FTC have issued consumer advisories alerting the public to spot potential unfair and deceptive practices and encouraging consumers to file complaints of suspicious conduct with the FTC, CFPB and state consumer protection agencies. The Treasury Department, the CFPB and the FTC, along with the U.S. Department of Energy (DOE) and the U.S. Department of Housing and Urban Development (HUD), also announced an interagency partnership aimed at strengthening efforts to prevent predatory practices coordinate. The new partnership will promote better communication and collaboration between the agencies and better protect consumers from bad actors.
Over the past decade, regulators have seen an increase in consumer complaints about some unscrupulous companies that pressure consumers into predatory contracts or purchases, including with unfair financing, and/or fail to install or activate residential solar systems as promised. While regulators have already taken action against bad actors, the Biden-Harris administration is committed to further addressing unfair and deceptive practices and empowering consumers to make informed decisions.
The Treasury Department, the CFPB and the FTC encourage consumers who believe they have been victims of unfair or deceptive practices to file a complaint with the CFPB, the FTC or their relevant state consumer protection agency. These consumer complaints help enable a whole-of-government response to root out unfair and deceptive practices and hold bad actors accountable.
“While the skyrocketing growth of the residential solar industry is driving down costs for consumers across the country, a small number of bad actors are taking advantage of the opportunity to defraud customers,” said Deputy Secretary of the Treasury Wally Adeyemo. “By providing new information to consumers interested in solar power for their homes and coordinating across federal agencies to prevent scams, the Biden-Harris Administration is helping ensure that consumers who want to lower their energy bills do so with can do successfully.”
“With the sweltering heat across America this summer, many families are installing solar panels to save on energy costs to cool their homes,” said Rohit Chopra, director of the Consumer Financial Protection Bureau. “The CFPB will be scrutinizing solar lenders to ensure Americans don’t get burned.”
Expanded access to affordable, reliable residential solar energy is critical to lowering energy costs and providing meaningful benefits to Americans. Residential solar can save households tens of thousands of dollars in electricity costs over the life of the solar installation. All Americans should be able to take advantage of various federal and state incentives to access solar energy at home, without fear of unfair or deceptive practices.
The consumer solar advisories from the Treasury Department, CFPB and FTC will serve as educational tools that consumers can use at the beginning of their solar purchasing process to make informed decisions. They describe different types of solar energy options, warn about common unfair or deceptive practices, provide important questions to ask before making purchases or signing agreements, and provide instructions on how consumers can file complaints.
These consumer advisory and educational materials are published to supplement the ongoing efforts within the federal government to protect consumers. The partnership announced today between the Treasury Department, CFPB, FTC, DOE and HUD will establish a forum for sharing information that will be critical to monitoring fraudulent behavior.
View the Ministry of Finance’s consumer advice and educational resources here:
Check out the FTC resources here:
News item from the Ministry of Finance
