Bronze Swan will no longer sell the Enersonic Power Saver device after the Australian Competition and Consumer Commission raised issues about the effectiveness of the device.
From March 2009 to April 2010, Bronze Swan marketed the device, which plugs into a standard electricity outlet and which purports to reduce the user's electricity consumption. Bronze Swan promoted and sold the Power Saver on its website greenpowersaver.com.au, at trade and agricultural shows around Australia and also through its authorised agents. Bronze Swan sold around 2100 devices, each typically costing $139.95.
The ACCC was concerned that claims by Bronze Swan on its website and in its promotional material that the device would reduce consumers' electrical consumption and cut their electricity bills, were misleading and deceptive, or likely to mislead or deceive, in contravention of the Trade Practices Act 1974.
Bronze Swan has been cooperative in resolving this matter and acknowledged the ACCC's concerns by ceasing to distribute the Power Saver.
The ACCC has accepted court enforceable undertakings from Bronze Swan that it will:
- not engage in the retail sale, marketing or distribution of the Power Saver
- display a corrective notice on the Bronze Swan website for three months
- display the corrective notice for a period of 12 months at each trade or agricultural fair or home show that it attends
- send a copy of the corrective notice to all consumers and agents that purchased the Power Saver, and
- implement a trade practices law compliance program.
"Consumers today are very concerned about rising electricity costs and traders should not take advantage of those concerns by making misleading and unsubstantiated representations that their products can reduce consumers' electricity bills," ACCC chairman Graeme Samuel said today.
In July 2010, the ACCC instituted legal proceedings in the Federal Court in Sydney against the distributor of the Power Saver device, Auscha Corporation Pty Ltd and its Products Development Officer, alleging that Auscha made a number of false or misleading representations about the Enersonic Power Saver in breach of the Trade Practices Act 1974. Those proceedings are continuing and a hearing is set down for 15 October 2010.