[co-author: Stephanie Kozol]*
On October 5, Arkansas Attorney General (AG) Tim Griffin issued an enforcement advisory to Arkansas solar installation companies. The letter outlines solar installation companies’ legal obligations under the Arkansas Deceptive Trade Practices Act. Specifically, Griffin expresses concern over companies’ “predatory sales tactics” and deficient contracts.
Griffin highlights several examples of these companies’ sales practices that consumers have reported to his office. According to the letter, solar companies have improperly engaged in the following:
- Issuing false information regarding a consumer’s eligibility for tax rebates.
- Leading customers to believe the solar panel installation will be covered by government-funded grants, when in fact a customer may not qualify.
- Alluding to nonexistent partnerships with electric utilities.
- Implying consumers will no longer receive an electric bill.
- Providing insufficient or nonexistent customer service.
Griffin also outlines deficiencies his office has seen in these companies’ contracts. Many customers have reported not receiving copies of contracts or cancellation forms. Furthermore, Spanish-speaking customers have allegedly not received contracts and accompanying documentation in the Home Solicitation Sales Act.
Why It Matters
Griffin is just one of many state AGs who have raised concern regarding solar installation companies’ business practices. Last year, the AGs for Missouri, Idaho, New Mexico, and Washington, D.C. each took some sort of action related to solar installation companies’ business practices. As consumers increasingly turn toward solar energy, these companies will need to ensure that they are complying with states’ unfair and deceptive practice laws in order to avoid state AG scrutiny.
*Senior Government Relations Manager
