EnergyAustralia has strengthened its sales compliance processes following breaches by third party suppliers engaged to sell electricity and gas plans.
The company has settled proceedings with the ACCC following six complaints about door-to-door selling involving three marketing and sales companies engaged by EnergyAustralia. The incidents occurred in 2011 and 2012.
As part of the settlement, EnergyAustralia has agreed to pay a $1.2 million penalty as well as the ACCC’s costs of $25,000.
EnergyAustralia ceased doorknocking activities in March 2013.
General Manager – Sales and Marketing, David Hamilton said EnergyAustralia had worked co-operatively with the ACCC to reach an agreement.
“We take our legal obligations and commitment to providing quality customer service very seriously and we apologise for failing to deliver in these cases,” Mr Hamilton said.
“We expect all third-party suppliers to deliver high-quality service and to abide by the industry’s compliance practices.
“We have already improved our sales compliance processes by improving how we monitor, assess and report on sales, and have increased resources to monitor third party vendors.
“We also have a Compliance Program in place and will take further steps to make sure we meet the requirements set out in the orders. This includes ensuring all directors and employees involved with Australian Consumer Laws are provided yearly training.”
EnergyAustralia last year led the industry in banning doorknocking as part of its sales processes.
“EnergyAustralia is committed to listening and acting on customer feedback, and that’s why we have already stopped door-to-door sales,” Mr Hamilton said.