Xoom Energy Class Action Lawsuit Alleges Bait-and-Switch Marketing

A Xoom Energy class action lawsuit has been filed by Maryland and New Jersey consumers who claim the energy retailer used bait-and-switch tactics to entice them into subscription. The Xoom Energy class action lawsuit alleges the company falsely advertised low rates to attract customers, and suddenly increase the prices on the consumer after they sign up.

Plaintiffs Oladipupo Adesina and Michael Todd are leading this Xoom Energy class action lawsuit, and filed this claim in behalf of themselves and other similarly situated consumers. Both Adensina and Todd say they were subject to unfair bait-and-switch sales practices when the company presented attractive low rates in the Simpleflex plan.

After discovering other consumers in their respective states may have experienced similar circumstances, they opted to file the Xoom Energy class action lawsuit.

Overview of Xoom Energy Class Action Lawsuit

Adesina is the Maryland plaintiff, who reportedly switched to Xoom Energy from his local energy company Baltimore Gas and Electric (BGE) in June 2014. Adesina made this decision based on the marketing materials presented by Xoom Energy sales representatives.

At the time, Adesina was promised low rates for two months, but then he allegedly saw a sudden price surge immediately after. These prices were reportedly higher than BGE rates, with three months of Xoom payments 35% higher than he would have paid BGE within the same span of time.

Todd is the New Jersey plaintiff, who had switched to Xoom Energy from Public Service Electric and Gas (PSE&G) in May 2013. Todd opted to sign up for Xoom Energy after sales representatives promised lower rates than PSE&G.

However Todd allegedly experienced significant price increases soon after switching over, paying Xoom 86% higher in January 2014 and 128% higher in February 2014 compared to what he would have paid PSE&G.

In addition to the high price energy bills, Xoom Energy allegedly makes it very difficult for consumers to cancel their subscriptions. The cancellation process reportedly takes up to two billing cycles, which the customer has to wait out in order to switch energy companies. It did not take long for Adesina and Todd to discover by reading online reviews that other customers also allegedly experienced these circumstances.

“My bill increased by thirty to fifty percent. Then ZOOM refused to terminate my services when requested to do so. ZOOM rents from the primary Utility Company and the consumer ends up paying twice. Please do not fall for this scam. Stay with your original energy provider. I am more than disappointed with this company. They are making money at our expense with nothing to provide in terms of service or saving money. I did not sign a contract, I signed with a friend. Please don’t sign any contracts on the strength of friendship where money is involved,” said one online review cited in the Xoom Energy class action lawsuit.

This Xoom Energy class action lawsuit is seeking damages of over $5 million in damages, claiming Xoom Energy and other alternative energy providers tricked consumers into signing up for their services and making it unreasonably dangerous to switch back to their previous providers.

This Xoom Energy Class Action Lawsuit is Case No. 8:15-cv-00154-GJH, in the U.S. District Court for the District of Maryland.

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