Trends, Reports & Analyses

Alert Issued on Deceptive Pitches

By Victoria A. Rocha | ECT Staff Writer Published: January 28th, 2011

As more energy companies compete for consumers’ wallets, the Better Business Bureau is warning them to do their homework before agreeing to any energy-saving sales pitches.

The Better Business Bureau serving Montana advises consumers to consult their utilities before agreeing to any energy-saving sales pitches. (Photo By: Jim Maunder)

The Better Business Bureau serving Montana advises consumers to consult their utilities before agreeing to any energy-saving sales pitches. (Photo By: Jim Maunder)

“Don’t Get Burned by Questionable Pitches for Energy-Saving Devices” is the title of an alert issued earlier this month by the BBB in Eastern Washington, Northern Idaho and Montana. The alert urges consumers to be skeptical of groups that promise their products will perform like insulation or will significantly reduce utility bills.

The BBB issued the one-page tip sheet because it anticipates more instances this year of questionable advertising to an unsuspecting public, said Zan Deery, an investigator who’s been working on cases of alleged product deception with two Montana co-ops.

As the economy struggles to regain its footing, “people are digging deeper, trying to see where they can save money,” said Deery, who wrote the tip sheet. “When winter comes, distributors have the stage set, they’ve got a platform. These guys have hit the road running, and they’re pitching it hard.”

The tip sheet urges consumers “to do their homework before they agree to any energy-saving sales pitches.” Among other things, it recommends that consumers contact “local experts” for resources and tools on energy efficiency and conservation.

The document also describes the Federal Trade Commission’s “Cooling-Off Rule,” which “gives you three business days to cancel a contract if you sign it in your home or at a location other than the contractor’s permanent place of business, such as restaurant or hotel/motel room.”

Deery emphasized that concerned consumers should file complaints with one of the 128 BBBs around the country. More complaints on file make it easier for BBBs to investigate, she said. She credited the Montana co-ops for cluing her in on alleged sales fraud in their communities, saying “They gave us information we didn’t have.”


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