Energy Watch Pty Ltd has undertaken to the Federal Court that it will not make a number of representations in any media until the ACCC’s proceedings against it are finalised or until further order of the Court. Energy Watch offers an energy price comparison service.
On 26 August 2011 the ACCC commenced proceedings in the Federal Court in Melbourne against Energy Watch and Mr Benjamin Polis, alleging contraventions of the Australian Consumer Law by making false or misleading representations:
- that Energy Watch compares the rates of all or many of the energy retailers in the relevant geographic area of a consumer
- as to the amount consumers have saved, and will save, by using the service provided by Energy Watch.
These representations were made through a range of different media including television, radio and print advertising, on websites and billboards, and advertising displayed at the MCG during AFL games.
In response to the ACCC seeking interlocutory injunctions against the company, Energy Watch has now provided undertakings to the court to the effect that:
- Energy Watch will not represent in any media that Energy Watch compares the rates of all of the energy retailers available in a person’s area unless:
- for a person with an existing energy connection, the comparison will be of their existing energy rates with the rates of all other energy retailers available in the area
- for a person who needs a new energy connection, the comparison will be of the rates of all energy retailers available in the area
- Energy Watch will not represent in any media that Energy Watch compares the rates of many of the energy retailers available in the area of such persons, unless the comparison by Energy Watch will be of the rates of a majority of energy retailers available in the person’s area
- Energy Watch will not represent in any media that Energy watch can save persons a specified monetary amount without also stating the number and type of customers who have achieved the savings and the period over which it has been achieved
- Energy Watch will remove or cover certain statements which include “save” and a monetary amount on billboards, including billboards in metropolitan Melbourne and in regional and rural areas.
The final orders sought by the ACCC in the proceedings include:
- declarations
- final injunctions
- pecuniary penalties, &
- the implementation of a compliance program.