In ACCC v Neighbourhood Energy Pty Ltd and Australian Green Credits Pty Ltd the Federal Court ordered Neighbourhood Energy Pty Ltd and Australian Green Credits Pty Ltd by consent to pay a total penalty of $1 million for illegal door-to-door selling practices following action by the Australian Competition and Consumer Commission.
Neighbourhood Energy, a wholly owned subsidiary of Alinta Holdings, was ordered by consent to pay a penalty of $850,000. Australian Green Credits, the former door-to-door marketing contractor for Neighbourhood Energy, was ordered by consent to pay $150,000, and both parties contributed towards the ACCC’s costs.
The Court declared that Neighbourhood Energy and Australian Green Credits engaged in multiple breaches of the Unsolicited Consumer Agreement provisions of the Australian Consumer Law (ACL) (sections 74(a), 74(b), 74(c) and 75(1)(a)).
The Court declared that door-to-door salespeople engaged by Australian Green Credits to sell electricity on behalf of Neighbourhood Energy failed to leave the homes of two consumers upon request, in breach of the ACL. In both instances, the initial request was made by a notice that stated ‘do not knock’ and indicated that unsolicited door-to-door selling was unwelcome at that home.
The Court also declared that salespeople representing Neighbourhood Energy made misleading and deceptive statements to consumers, including that the salesperson was not there to sell anything, and that the consumer had been ‘zoned incorrectly’ and was being overcharged by their current supplier.
The Court further declared that Neighbourhood Energy and Australian Green Credits breached the ACL because the salespeople did not clearly advise consumers, at all or before starting to negotiate:
- that the salesperson’s purpose in calling on the consumer was to seek the consumer’s agreement for the supply of electricity
- that the salesperson would be obliged to leave immediately upon request, and
- the name of Australian Green Credits as the marketing company, and the address of the Neighbourhood Energy as the supplier of the services being offered.
The Federal Court also granted injunctions restraining Neighbourhood Energy and Australian Green Credits from engaging in similar conduct for 2 years and ordered corrective advertising and compliance programs.
