Victoria’s Supreme Court slaps electricity and gas retailer Sumo with $10m in fines

Victoria’s top court has ordered power and gas company Sumo to pay more than $10m for dodgy door-to-door sales in a record penalty for breaches of the state’s energy laws.

Victoria’s top court has ordered power and gas company Sumo to pay a record $10m for dodgy door-to-door sales.

Companies are prohibited from calling on a customer at home to negotiate an electricity or gas contracts without their direct consent, but Sumo admitted to doing so nearly 6000 times between January and August in 2022.

It is the largest penalty ever imposed for breaches of Victoria’s energy laws and codes of practice.

Sumo also admitted to signing up two customers onto energy contracts despite not receiving explicit informed consent, and incorrectly checking best available offers for 60,000 customers and failing to alert them of the best deals.

Sumo also admitted to signing up two customers onto energy contracts despite not receiving explicit informed consent.

The Essential Services Commission launched the Supreme Court action, with Justice Michael Osborne handing down his judgement on Friday.

“The penalty should be sufficient to incentivise Sumo and other retailers to invest in the necessary IT and compliance infrastructure to avoid future contraventions,” he said.

Sumo was also ordered to pay an additional $200,000 to cover the commission’s legal costs.

The company must not engage in any door-to-door marketing of energy products or services for three years, even with customer consent.

The judgement noted Sumo was a small player, with less than 2 per cent of market share, and that it had acknowledged liability from early on.

The commission’s chairperson Gerard Brody said the decision sent a “strong message” to all energy businesses and would deter other retailers from engaging in similar conduct.

“Victoria has banned high-pressure door-to-door sales by energy retailers, protecting consumers from aggressive sales tactics,” he said.

“Strict rules mandating clear ‘best offer’ messages are designed to help Victorians save money.

“With cost-of-living pressures continuing to affect so many, compliance with these laws is not optional — it’s essential.”