The Australian Competition and Consumer Commission (ACCC) has won a case against energy provider AGL, which has been slapped with a $1.555 million fine for its ‘illegal door-to-door selling practices’ by the Federal Court’.

“These significant penalties send a clear message to businesses that do not adhere to their obligations under the Australian Consumer Law. The ACCC will not hesitate to take action to protect consumers in their homes from unscrupulous sales tactics and enforce compliance with the laws,” ACCC Chairman Rod Sims said.

“The ACCC has previously put energy retailers on notice that it is closely watching their use of door-to-door selling practices and the conduct of their salespeople. In September 2012, Neighbourhood Energy Pty Ltd and Australian Green Credits Pty Ltd were ordered by consent to pay penalties of $1 million for door-to-door sales conduct, highlighting significant concerns regarding these sales practices in Australia.” 

In summary, the Court declared that a salesperson engaged by CPM to sell electricity and gas on behalf of AGL Sales in Victoria made false representations and engaged in misleading and deceptive conduct during uninvited calls on consumers.

The Court also declared that the salespeople breached the Australian Consumer Law (ACL) because they did not clearly advise consumers that the salesperson’s purpose in calling on the consumer was to seek the consumer’s agreement for the supply of electricity and gas or that they would be obliged to leave immediately upon request.