Lumo Energy Australia Pty Ltd - s.87B undertaking

The ACCC has accepted a section 87B Undertaking from Lumo Energy Australia Pty Ltd (Lumo Energy) in respect of conduct by Lumo Energy sales agents during unsolicited visits to residential consumers at their homes for the purpose of selling gas and electricity (energy products).

Lumo Energy is a smaller retail supplier of energy products. In the course of offering energy products for sale at the door the ACCC considers that Lumo Energy sales agents did not on at least four separate occasions:

• clearly advise prospective consumers that the purpose of their visit was to seek the prospective consumer's agreement to purchase energy products from Lumo Energy in contravention of section 74(a) of the ACL;
• clearly advise prospective consumers that the Lumo Energy sales agent was obliged to leave the premises immediately on request in contravention of section 74(b) of the ACL;
• provide to prospective consumers information about the sales agent's identity that is required by section 74(c) of the ACL and regulation 82 of the Competition and Consumer Regulations 2010 (Regulations) (being the sales agents name and Lumo Energy's name and address) in contravention of section 74(c) of the ACL.

Lumo Energy admits that by engaging in the conduct described above, it is likely to have contravened sections 74(a), 74(b) and 74(c) of the ACL.

The ACCC is currently prioritising its activity in relation to energy consumer protection matters and in particular in relation to door to door sales practices. To address the ACCC's concerns Lumo Energy has provided the ACCC with a court-enforceable undertaking that it will comply with the relevant provisions of the ACL.