AGL fined for illegal door-to-door sales practices

The Federal Court has ordered by consent that AGL Sales Pty Ltd and AGL South Australia Pty Ltd pay combined penalties of $1.555 million for illegal door-to-door selling practices, following action by the Australian Competition and Consumer Commission (ACCC). CPM Australia Pty Ltd, the marketing company used by the AGL companies, was also ordered to pay $200,000 for its role in the conduct, according to an ACCC Media Release.

ACCC Chairman Rod Sims said:

“These significant penalties send a clear message to businesses that do not adhere to their obligations under the Australian Consumer Law. The ACCC will not hesitate to take action to protect consumers in their homes from unscrupulous sales tactics and enforce compliance with the laws.

“The ACCC has previously put energy retailers on notice that it is closely watching their use of door-to-door selling practices and the conduct of their salespeople. In September 2012, Neighbourhood Energy Pty Ltd and Australian Green Credits Pty Ltd were ordered by consent to pay penalties of $1 million for door-to-door sales conduct, highlighting significant concerns regarding these sales practices in Australia.”

In summary, the Court declared that a salesperson engaged by CPM to sell electricity and gas on behalf of AGL Sales in Victoria made false representations and engaged in misleading and deceptive conduct during uninvited calls on consumers - see sch 2, s 18 of the Australian Consumer Law.

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