The Federal Court has ruled that Energy Watch breached consumer law over 80 times, misleading consumers in relation to its energy price comparison service and the savings that could be achieved through the service.

 

The Australian Competition and Consumer Commission (ACCC) pursued action against the company in the High Court, which found that former CEO, Benjamin Polis, was personally culpable through his role as the voice-over in the radio advertisements.

 

The High Court found that the advertisements mislead consumers in contravention of of sections 18(1), 29(1) and 34 of the ACL. They comprised of:

  • 8 television advertisements broadcast in Melbourne and/or Brisbane,
  • 9 radio advertisements broadcast in Brisbane,
  • 33 print advertisements in The Age and Herald Sun newspapers,
  • A wrap around to an issue of the AFL Record,
  • Statements made on an Energy Watch website and other websites,
  • 11 billboards in or around Melbourne; and
  • Advertisements on a scoreboard at the MCG during 3 AFL games in the 2011 AFL season.

 

Energy Watch had also falsely represented that:

  • It had an adequate basis to claim that it had saved residential customers $386 and business customers $1,878 in the 12 months following switching their energy retailer through Energy Watch;
  • It would save residential and business customers those amounts in the 12 months following switching their energy retailer through Energy Watch.

 

“Energy Watch blatantly misled consumers about the service it provides and the savings they could obtain, as Energy Watch was earning commissions from its preferred suppliers for each customer who switched to them using the Energy Watch service,” ACCC chairman Rod Sims said.