ACCC to investigate energy retailers over alleged misleading sales practices

The ACCC has been called to investigate Australian energy retailers after complaints over alleged misleading advertising and sales offers.

It comes after CHOICE, a consumer advocacy organisation, raised the alarm on the practices in May.

The complaints aired at retailers include identical plan names being used for plans with different rates, and use of plan names that referred to 'savings' even though they were more expensive than the standard plan offered.

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ACCC Deputy Chair Catroina Lowe said the measures had a strong impact on the plans customers eventually selected.

"Energy plans that promote 'savings' or value may entice many consumers to a particular plan and influence their decision making," she said.

"We are concerned that consumers may be misled or deceived by plan names or descriptions of plans that offer 'savings' that are not genuine, or that consumers may be discouraged from switching to cheaper plans that are available to them."

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The ACCC said issues also came about when 'better offer' and 'best offer' messages were included on customers' energy bills; retailers are required to regularly include a message on bills to residential customers to alert them if they can save money by switching to a different plan with the retailer.

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