"Energy Exchange" and Spoofed Numbers: Solar Xchange and Its CEO Sued Over Robocalls

The bottom line: lead generators that mask who they are, and sellers that use them, face TCPA claims together.

What is alleged

Here are the main allegations, as ClassAction.org describes the complaint:

1. Solar Xchange call centers provide leads for residential solar company Vision Solar.
2. Since at least 2020, Solar Xchange allegedly placed hundreds of thousands of unlawful telemarketing calls, often calling itself "Energy Exchange" or suggesting a tie to a state government program or the local utility.
3. In October and November 2020, the plaintiff says he received more than 10 calls from different numbers, from callers claiming to represent different companies. The calls used prerecorded messages and spoofed numbers.
4. The agents never named Solar Xchange or Vision Solar. The plaintiff says he learned about Vision Solar only when its representative arrived at his house for a scheduled consultation.
5. The calls allegedly continued even after he asked them to stop.
6. The suit alleges that more than half of Solar Xchange's calls between August 2021 and June 2022 went to numbers on the Registry.

These are allegations; the court has not ruled on them.

Related federal action

According to ClassAction.org, the Department of Justice (DOJ) filed a lawsuit in July 2023 over the company's telemarketing practices, which ended in a fine of nearly $14 million and a permanent bar on Solar Xchange, Getts and Vision Solar from certain telemarketing.

The law

The TCPA prohibits telephone solicitations to numbers on the Do Not Call Registry without consent, and prerecorded calls without consent. Separately, the Telemarketing Sales Rule (TSR) requires telemarketers to promptly disclose the seller's identity. Misrepresenting an affiliation with a government program or utility is a separate violation.

Why it matters

Hidden identity is a recurring feature of solar telemarketing complaints. A consumer who cannot tell who called cannot opt out effectively, which is one reason regulators require disclosure. Any seller that relies on lead generators should expect to be named when the lead generator fails to identify the seller.

What this means for you

1. Require every caller to identify the seller by name at the beginning of the call.
2. Prohibit references to government programs or utilities unless accurate and authorized.
3. Do not use spoofed or rotating caller ID numbers that cannot be dialed back.
4. Scrub against the National Do Not Call Registry and honor stop requests immediately.
5. Audit lead generators' calls, not only their contracts.

If the consumer cannot tell who is calling, the call is a compliance problem.