Articles Tagged with Chicago consumer protection class action attorneys

Luring customers in with low rates, only to raise those rates once the customer has been acquired, is a common tactic known as bait-and-switch. It is particularly effective in hooking low-income and elderly customers who have a fixed budget because they are most often the people who are on the lookout for the best deal. Unfortunately, when a deal seems like it might be too good to be true, the sad fact is that it usually is.

When ComEd announced earlier this year that it would be raising its rates by 21 percent, the number of people looking for a deal jumped dramatically. Unfortunately, many companies took advantage of this jump by promising low rates. However, because many of these companies are unregulated, they can raise their rates later by as much as they want, when they want. They don’t even have to provide their customers with an explanation for the raise in rates.

ComEd’s rates recently went up from 5.5 cents per kilowatt-hour to 7.6 cents per kilowatt-hour. A kilowatt-hour is the amount of energy required to power a medium-sized window AC unit for one hour. The average ComEd customer uses 655 kilowatt-hours per month. Despite Starion’s claims that customers can save money by switching to Starion Energy, Starion’s average rate is allegedly 13 cents per kilowatt-hour, almost double ComEd’s price. Continue reading ›

Companies know the importance of advertising. Many people are attracted by a particular label or claims that a product is associated with a certain time in history or perceived social standing. This is especially true of alcohol where, aside from the taste, many people make their purchasing decisions based on a sense of prestige. Breweries and distilleries often try to given their brand a pretigious image and use that image in their advertising, including the producers of Templeton Rye Whiskey.

According to a recent class action lawsuit against the company, Templeton Rye allegedly violated consumer protection laws by allegedly misleading consumers with stories of the whiskey’s origins. Marketing material released by the company claims that its founders were inspired by the Prohibition-era recipe of Alphonse Kerkhoff, which was handed down through his family on a scrap of paper. The label on the whiskey bottle also bears an old black-and-white photo, which is reminiscent of America in the 1920s when Prohibition was in effect. The label matches the whiskey maker’s claims to a recipe that has been handed down through the generations, and reinforces the belief that the whiskey is made using a recipe that is almost 100 years old. Continue reading ›

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