CHOICE has made its first designated complaint to the ACCC alleging energy retailers may be misleading or deceiving consumers in the way that they describe their plans. CHOICE has identified three widespread concerning practices:
- Using identical plan names to represent plans with different prices
- Using names and descriptions that refer to 'savings' for poor-value plans
- Prompts to switch plans (known as 'Better Offer' or 'Best Offer' messages) that refer to plans that do not appear to be available, or the customer is not eligible for.
One result of the widespread practice of reusing identical names for plans with differing prices is customers receiving 'Better Offer' or 'Best Offer' messages that refer to a plan with the same name as their existing plan, but with different prices. Many consumers reading this information were led to believe they were already on the best plan because the names were identical, potentially missing out on savings as a result.
CHOICE is asking the ACCC to investigate whether the energy retailers have breached consumer or competition laws. In our opinion, the systemic nature of these practices means any breach warrants strong, court-based action to deter similar conduct in other complex markets.
Download the statement (PDF)
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