Origin slapped with $2m fine over door-to-door tactics

Origin Energy has been fined $2 million for using illegal door-to-door sales tactics to flog their service to 10 Australian customers.

The sizeable penalty follows the Australian Competition and Consumer Commission filing legal proceedings in the Federal Court against the resource company and its marketing company, SalesForce Australia.

As well as ordering Origin to pay up, the court also fined SalesForce $325,000.

"These are the highest penalties to have been ordered against an energy retailer and an individual marketing company in relation to illegal door-to-door behaviour," ACCC chairman Rod Sims said.

"The message is clear – energy companies must ensure their sales representatives do no use illegal tactics when negotiating with customers at their door."

The court found sales representatives, tied to both companies, had breached the Australian Consumer Law while calling on 10 consumers at their homes in NSW, Victoria, Queensland and South Australia.

"In each case the sales representative practised deceptions on the consumers in order to secure their custom,” Justice Anna Katzmann stated in her judgment. "They preyed on the vulnerable and the ill-informed.

"[The conduct] is serious, not only because of the deliberate deceptions and the exploitation of vulnerable consumers, but also because of the location and context in which the conduct occurred: at private homes to which the respondents were not invited."

These are the fifth proceedings the ACCC has taken against an energy retailer in relation to inappropriate door-to-door marketing activities.