Switchwise.com.au Blog

Archive for the ‘Energy Ombudsmen’ Category

Door knockers curtailed by new Australian Consumer Law

Tuesday, November 30th, 2010

Consumers across Australia should be looking forward to a happier new year. From 1 January 2011, Australia will introduce a single, national consumer law -the Australian Consumer Law (ACL). The ACL makes a number of significant changes to unify and tighten consumer rights across all States and Territories of Australia. Of particular interest to us are the changes relating to door-to-door sales as this is a practice aggressively pursued by many energy retailers.

Under the new law, a sales person will not be permitted to knock on your door on Sundays or public holidays, before 9am or after 6pm on week days or before 9am or after 5pm on Saturdays. This new law will have the greatest impact in NSW where door knockers are currently able to annoy you (or sell to you) up to 8pm seven days per week. In Victoria, South Australia and ACT door knockers can currently visit up to 8pm on weekdays so from 1 January you should be able to enjoy your dinner in peace. Queensland residents have already been benefiting from the most restrictive door selling times in the nation and the new laws reflect the standards set in Qld.

It will be interesting to monitor whether these new laws actually result in less door knocking activity by energy retailers and others or whether it will result in more concentrated activity over a shorter time period. If you are a person usually at home during the day then you might actually be worse-off. However, those of you working 9 to 5 should enjoy a peaceful existence.

Over the 32 days remaining until the ACL takes effect, we expect to see a burst of door knocking activity as companies scramble to get as many new customers as they can. This will likely be most acute for NSW residents given that the selling hours are to be reduced the most.

Unfortunately, telemarketing hours have not been reduced in line with the new door knocking hours – this can still be done until 8pm on weekdays and until 5pm on Saturdays. As a result we might expect to see more calls being made to consumers to make up for any shortfalls from door knocking. At least you have some control here – simply register on the Do Not Call Register to avoid irritating sales calls.

We take this opportunity to give one simple piece of advice to all of you – never make a decision at your front door or on the phone. Always ask for an offer in writing, which you can review at your leisure, before making any decisions to enter into new contracts with energy companies or anyone else for that matter. And don’t agree to something just to get rid of a pesky sales person – it’s not worth the hassle. If you don’t take our advice at least remember that by law you have a 10 business day cooling-off period to cancel.

If you are interested, you can read more about the new law on the Australian Consumer Law Website.

Door knockers creating legal issues for Maribyrnong residents

Tuesday, September 15th, 2009

I recently received a letter from Councillor Michael Clarke, Mayor of Maribyrnong City Council, advising of the legal problems being faced by his residents, particularly recent immigrants, as a result of the door-to-door sales practices being employed by energy companies and/or their sub-contractors.

The legal problems apparently result from the usual promises made about getting a better deal by switching at the doorstep and a failure to clearly communicate important terms such as termination fees. Often, the door knockers are asking the children of non-English speaking parents to act as translators! As a native English speaker I find it is often difficult to understand what is being offered by the person standing on my doorstep; a person with limited or no knowledge of the English language would not stand a chance of understanding what they are getting themselves into.

The Mayor intends to make a formal submission to the Essential Services Commission to stop such practices. I also do not understand why the energy companies persist with door to door sales given all the problems it creates both for their customers and themselves in terms of brand damage. High pressure sales techniques such as door knocking have been quite successful in getting customers to change providers but in my opinion should be outlawed.

Have you had problems with door-knockers? We’d like to hear your story.

AGL to return security deposits to South Australian consumers

Monday, June 1st, 2009

In response to large numbers of complaints from consumers, the Energy Industry Ombudsman of South Australia and the Essential Services Commission of South Australia have pressured AGL to change its security deposit policy and to return all security deposits collected from its customers in South Australia. AGL has also agreed not to collect security deposits in future.

In this day and age the collection of security deposits seems an archaic policy that is not, as far as I am aware, practised in any other industry.