Lumo Energy has paid a penalty of $10,800 ($8,138 USD) to the ACCC for making a “false or misleading” representation of its energy discounts under Australian Consumer Law.
In February this year Lumo stated on its website that consumers could save 33 per cent off their total electricity bill, and 17 per cent off their total gas bill if they switched to Lumo. Despite offering electricity to Victoria, South Australia and Queensland, it turns out this offer was only available to Victorian customers – something Lumo failed to mention.
Maximum discounts for electricity were substantially less in other states. Lumo doesn’t even sell gas to other states.
“Discounted energy plans are very attractive to many Australians who are trying to reduce their energy bills,” ACCC Commissioner Sarah Court said. “It is vitally important that any representations made to consumers about discounts are accurate and relevant to them, so that people can make informed decisions about their choice of energy retailer and feel confident in those choices.”
“Consumer confidence can lead to increased switching between retailers, and better competition within the energy market as a whole,” Court said.
Full Content: ACCC
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