BehindMLM
reviewed Viridian
last December. One of the primary concerns raised was a potential lack of retail viability due to high service costs.

Turns out we were onto something.

Earlier today the Massachusetts Attorney General’s Office announced a $5 million dollar settlement with Viridian.

In reaching the settlement, Viridian acknowledged it had used “deceptive marketing and sales tactics that lured residents into costly contracts with high electricity rates”.

No matter what was promised or pitched to potential retail customers by Viridian affiliates, the AG’s Office alleged

that consumers who switched to Viridian ultimately paid more for electricity than if they had stayed with their utility.

Viridian contracted with independent sales agents and instructed them to tell potential customers, including friends and family members, that signing up with the company would save them money over time.

In fact, customers paid more than they would have if they had remained with their electric utility company’s basic service.

Of the $5 million to be paid by Viridian as per the settlement, $4.6 million will be used ‘
to provide restitution to affected customers
‘.

The remaining $400,000

will go toward: offsetting the cost of the office’s investigation of Viridian; creating a new fund for future enforcement cases the office brings against competitive electric suppliers; and the state’s General Fund.

Of
the settlement
AG Maura Healey stated;

Our settlement requires Viridian to pay back millions of dollars they owe customers for their deceptive tactics and false promises.

Viridian announced last December that it was
terminating MLM business operations nationally
as of this month.

As part of the settlement the company has also agreed to cease selling electricity door-to-door in Massachusetts for two years.

🤖 Quick Answer

What were the main allegations against Viridian in the Massachusetts settlement?
Viridian was accused of employing deceptive marketing and sales tactics that misled consumers into entering costly electricity contracts with rates higher than their original utility providers. The company contracted independent sales agents who presented misleading information to potential customers regarding pricing benefits.

What financial penalty did Viridian face?
The Massachusetts Attorney General's Office announced a $5 million dollar settlement with Viridian following the deceptive marketing investigation. This settlement resolved allegations concerning the company's unfair business practices and consumer protection violations.

How did Viridian's pricing compare to standard utility rates?
Consumers who switched to Viridian ultimately paid significantly more for electricity than they would have retained with their existing utility providers. This pricing disadvantage contradicted the benefits promised by Viridian's affiliated sales representatives during the recruitment process.

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