Simply Energy pays $20,400 penalty for alleged misleading door-to-door sales

An electricity supplier has paid a penalty of $20,400 following the issue of two infringement notices by the ACCC for alleged misleading door-to-door sales conduct.

In separate instances in 2014, sales representatives selling Simply Energy electricity products visited the homes of two consumers in Victoria for the purpose of switching them from their existing electricity supplier to Simply Energy. It is alleged that the sales representatives told the consumers that there was an ‘urgent problem’ or ‘something wrong’ with their existing electricity supply, when this was not the case.

The infringement notices were issued because the ACCC had reasonable grounds to believe that IPower made false or misleading representations about the standard or quality of goods in contravention of the Australian Consumer Law.

“Consumers have a right to expect that door-to-door sales representatives will not make false or misleading representations, or otherwise engage in unlawful sales tactics,” ACCC Chairman Rod Sims said.

“The ACCC will continue to take appropriate enforcement action against retailers who do not comply with their obligations under the Australian Consumer Law.”

The payment of a penalty specified in an infringement notice is not an admission of a contravention of the Australia Consumer Law. The ACCC can issue an infringement notice where it has reasonable grounds to believe a person has contravened certain consumer protection laws.

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