Amaysim Energy Under Investigation For Misleading Consumers
Amaysim Energy could be in breach of Australia Consumer Law with the ACCC taking action against the company for allegedly making false and misleading claims over its discount savings for its Victorian and Queensland customers.
Between October last year and March Amaysim Energy (trading as Click Energy) told consumers in Victoria and Queensland they could get discounts of between 7 and 29 per cent off Click Energy’s energy charges if they paid their bills on time.
The ACCC claims these representations were false or misleading as the discounts offered applied to Click Energy’s market offer rates, which varied and were higher than Click Energy’s standing offer rates.
Since October 2017, Click Energy also represented that consumers would save an estimated amount if they switched, which we allege is false or misleading as they had no proper basis for these representations.
Rod Sims, ACCC chair says, “When compared with Click Energy’s standing offer rates, the discounts were much lower than advertised. In some cases, there was no discount at all.
“The advertised savings were based on the amount a consumer could save with Click Energy by paying on time, and not on any estimate of savings a consumer switching from another retailer would obtain.
“We believe that Click Energy’s conduct is among the worst practices we see in retail electricity marketing. We allege that consumers were misled about discounts and savings, with some consumers not getting any discount or savings at all.”
“The retail electricity market is too complex and opaque. Customers need to trust that discounts and savings advertised by retailers are accurate so they can make informed choices about which products are best for them.
Amaysim, launched in 2010 began as a telco selling SIM plans and grey imported smartphones from companies like Samsung and Alcatel. It now offers plans for energy and home internet.