The country's third-biggest energy retailer EnergyAustralia has been slugged with $1.5 million of fines after being caught out duping householders into new electricity and gas contracts.
The fines extend the crackdown by the competition watchdog and the energy regulator on electricity and gas retailers for misleading sales tactics, which have involved all the major suppliers in recent years, including AGL Energy and Origin Energy.
"Whether selling door to door or telemarketing, the ACCC will take action to ensure compliance with the Australian Consumer Law," said Australian Competition and Consumer Commission chairman Rod Sims. Consumers shouldn't feel worried about saying no to telemarketing calls or just hanging up, he said.
Of the fines ordered by the Federal Court, $1 million related to telemarketing calls by EA's agent, Bright Choice, between August 2012 and April 2013 when consumers were told they would be sent information on EA's offers allowing them to decide whether to sign up.
But the consumers were recorded by Bright Choice as having already agreed to a new contract, and were sent a welcome pack with contract documents as if they had already agreed to switch to EA, which is owned by Hong Kong-listed CLP Holdings. Bright Choice was fined $100,000 for its part in the deception.
EA and Bright Choice, which must also pay some of the ACCC's costs, consented to other orders made by the court against them.
Lessons learnt
EA's head of regulation and compliance Angela Jaric apologised on behalf of the company to the consumers involved. She said EA wasn't aware of what Bright Choice was doing and terminated its contract in September 2013 after an internal investigation. The customers affected were allowed to transfer to another retailer.
Ms Jaric said EA had "learnt valuable lessons" and improved training, reporting and assessment of third-party agents.
"We expect the highest standards from employees and contractors, and we acknowledge we should have had better processes in place so that this issue did not occur," she said.
The court case followed an investigation by the ACCC and the Australian Energy Regulator (AER).
The second fine on EA, of $500,000, was imposed after the AER brought a case against the utility for failing to get explicit consent from householders in South Australia and the ACT before locking them into a new contract.
EA was also fined $1.2 million last April for unlawful door-to-door sales. The utility has since ceased door-to-door marketing, as have Origin and AGL.
