Christina Spicer  |  August 21, 2014

Category: Consumer News

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Ambit Energy class action lawsuitOn Tuesday, an energy customer filed a class action lawsuit against Ambit Energy LP, a Texas-based power reseller and marketer, alleging that the power company deceived customers by falsely promising low electricity rates and free energy in its marketing and then overcharging for services.

Lead plaintiff Michael Urbino filed the class action lawsuit in New Jersey federal court. Urbino alleged that the Texas energy company used deceptive marketing ploys currently permitted by deregulated retail electricity markets in New Jersey and other states to offer customers “life-changing rewards,” “free travel, cruises and getaways,” and “free energy” to get them to switch energy suppliers.

The class action lawsuit alleges that Ambit claims it is able to do this by offering to charge competitive electric rates based on prevailing marketing conditions, but, in reality, rates based on prevailing marketing provisions actually increases the cost of electricity for Ambit’s customers. Urbino also alleges that Ambit deceptively markets its electricity sales by offering either rewards or “free energy,” but in truth, argues Urbino, the rewards are worth much less than the savings and benefits Ambit allegedly promised.

“In fact,” argues the plaintiff in his deceptive marketing class action lawsuit, “Ambit Energy’s pitch is in reality a false and misleading scheme, in which the rates actually charged to consumers are not competitive and bear little relation to prevailing market conditions.” Further, Urbino argues, “As a consequence of this scheme, consumers in New Jersey and across the nation are essentially being scammed out of millions of dollars in exorbitant charges for electricity.”

Urbino alleges that he switched his energy company from another New Jersey based utility company, PSE&G, to Ambit Energy in 2012 based on Ambit’s allegedly deceptive marketing promising substantial savings. However, Urbino claims in his class action lawsuit that his Ambit electricity bill was more than 60 percent more than his PSE&G bill would have been. “No reasonable consumer who knows the truth about the Ambit Energy’s exorbitant rates would choose Ambit Energy as an electricity supplier,” the deceptive marketing class action lawsuit says.

The class action lawsuit alleges that Ambit Energy’s marketing constituted breach of covenant of good faith and fair dealing and unjust enrichment, as well as violated New Jersey’s Consumer Fraud Act. Urbino seeks to represent a Class of current and former Ambit Energy customers with his class action lawsuit. “Plaintiff brings this action to redress the deceptive marketing and billing practices of Ambit Energy,” Urbino says in his class action lawsuit, “which have resulted in thousands of consumers across the nation to pay substantially more for their electricity than they should have paid in the absence of Defendant’s unlawful and misleading scheme.”

Lead plaintiff Michael Urbino is represented by Jonathan Minkove and Lawrence J. Friscia of Friscia & Associates LLC, and Charles J. LaDuca, Bonnie Prober and Michael J. Flannery of Cuneo Gilbert & LaDuca LLP.

The Ambit Energy Deceptive Marketing Class Action Lawsuit is Urbino v. Ambit Energy LP, et al., Case No. 3:14-cv-05184, in the U.S. District Court for the District of New Jersey.

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39 thoughts onAmbit Energy Hit with Deceptive Marketing Class Action Lawsuit

  1. David says:

    Funny they have won the coveted J.D. powers customer service award in numerous years. Satisfied customers have already voted for Ambit. Sorry folks do your home work. You do not build a business that lasts 10 years built on a scam. Ambit Energy is listed in” Direct Selling News Global “as the 12th. largest direct marketing company in the world. It is the largest direct seller of energy. Oh, did I tell Ya that J.D. powers says Ambit is NO.1 in customer satisfaction. Two number 1s wow!

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