Click Energy accused by ACCC of false and misleading advertising
A BUDGET energy retailer has been whacked by the consumer watchdog for allegedly false and misleading advertising.
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A BUDGET energy retailer has been whacked by the consumer watchdog for allegedly false and misleading advertising.
The company behind Click Energy will be hauled before the Federal Court accused of using dodgy discount rates to lure in customers.
The Australian Competition and Consumer Commission accused Amaysim Energy Pty Ltd, which trades as Click Energy, of false and misleading marketing to Victorian and Queensland customers.
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The ACCC claims that from October, 2017 to March this year, Click Energy told customers they could get discounts of up to 29 per cent for paying on time.
But the offer applied to the company’s market offer rates, which were higher than standard rates, reducing the overall discount, it is claimed.
ACCC chair Rod Sims said that “in some cases, there was no discount at all”.
“We believe that Click Energy’s conduct is among the worst practices we see in retail electricity marketing,” he said.
The company also faces allegations it falsely claimed consumers could save money by switching from rival retailers.
“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,” Mr Sims said.
It’s understood the ACCC is seeking fines as well as an order to allow affected customers to ditch their Click Energy plans without penalty.
Mr Sims said the alleged misconduct highlighted the need for reform of the “opaque, complex” electricity market.
“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,” he said.
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