ACCC has instituted court proceedings against Click Energy

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The Australian Competition and Consumer Commission has instituted proceedings in the Federal Court of Australia against Click Energy alleging it made false and misleading marketing claims about discounts and savings that customers in Victoria and Queensland could obtain.

Click Energy - Federal Court of AustraliaPhoto of the Oar Mace of Admiralty from the Federal Court of Australia website.

By Anne Wardell, Regulatory Specialist, Compliance Quarter.

The breaches are alleged to have occurred from around October 2017 to March 2018 and involve a representation by Click Energy that customers could obtain discounts of between 7 and 29 per cent off Click Energy’s bill if they paid their bills on time. The problem with the offer was that the discounts offered applied to market offer rates which varied and were higher than the standing offer prices. Allegations were also made in relation to savings which would be available if the customers switched.

In announcing the action Mr Rod Sims, ACCC Chair said:

‘When compared with Click Energy’s standing offer rates, the discounts were much lower than advertised. In some cases, there was no discount at all.

The advertised savings were based on the amount a consumer could save with Click Energy by paying on time, and not on any estimate of savings a consumer switching from another retailer would obtain.

We believe that Click Energy’s conduct is among the worst practices we see in retail electricity marketing. We allege that consumers were misled about discounts and savings, with some consumers not getting any discount or savings at all.

The retail electricity market is too complex and opaque. Customers need to trust that discounts and savings advertised by retailers are accurate so they can make informed choices about which products are best for them’.

Further information is available on the ACCC Media releases page, ACCC takes action against Click Energy for misleading savings claims.

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