The Australian Competition and Consumer Commission (ACCC) has won its Federal Court action against Neighbourhood Energy and Australian Green Credits, with both companies consenting to pay $1 million for illegal door-to-door electricity selling.

 

The Court ruled that both companies had breached provisions under the Australian Consumer Law (ACL) on multiple occasions. The breaches included failure to leave the homes of consumers when requested, including by way of ‘do not knock’ signs.

 

“These orders are hugely significant and represents three ‘firsts’,” said ACCC Chairman Rod Sims.

 

“This is the first court outcome arising from the ACCC’s focus on door-to-door sales activity; it is the first ACCC case to be brought under the Unsolicited Consumer Agreement Provisions of the ACL, and it provides the first guidance as to the importance of ‘do not knock’ stickers.”

 

The Court ruled that Neighbourhood Energy is to pay $850,000, while Australian Green Credits, Neighbourhood Energy’s former door-to-door marketing contractor, is to pay $150,000 for its breaches of the ACL.

 

In addition to failing to leave a property on request, the Court found that both companies had engaged in misleading and deceptive conduct, finding that salespeople representing Neighbourhood Energy made misleading and deceptive statements to consumers, including that the salesperson was not there to sell anything, and that the consumer had been ‘zoned incorrectly’ and was being wrongly billed by their supplier.