Case studies

Marketing complaints

Increased competitive marketing activity in the energy industry has meant opportunities and challenges for consumers and retailers alike. EWON is receiving growing numbers of marketing complaints as customers report problems of misleading and pressured marketing as well as poor follow-up customer service. The following case studies demonstrate some common complaints.

Householder misled by door-to-door marketer

Kimberley was approached at home by a door-to-door marketer from Retailer A who advised her that her current retailer was no longer issuing bills to customers and that she would have to sign an agreement with Retailer A to issue her bills now. Kimberley believed the story and signed the papers.

Soon after, she was contacted by her previous provider to ask why she was transferring. Kimberley explained what the marketer had told her  and, realising now that she had been misled, she decided she did not want to go ahead with the transfer. When Kimberley called Retailer A to cancel the contract, she was told she would have to pay a significant amount in termination fees. Kimberley came to EWON for assistance.

When we spoke to Retailer A, they maintained they hadn’t received a cancellation call from Kimberley, but agreed nonetheless to transfer the  account back to her previous retailer at no charge and to investigate the marketer.

Vision impaired pensioner signs contract under pressure

Ronald is an aged pensioner with impaired vision. When he was visited by a door-to-door marketer from an energy retailer, he felt he wasn’t given enough time to think through the offer. Under pressure, he signed a contract and agreed to transfer his account to this retailer.

Ronald wanted the transfer cancelled and to stay with his existing energy retailer. He called the new retailer, but the cooling off period had passed and he felt he did not fully understand all the questions that were asked of him. He came to EWON for help.

We spoke with the new retailer who agreed to transfer Ronald’s account back to his previous retailer and waive any early termination fee.

Marketer signs up 16 year old non-account holder

Hayley was alone at her sister’s home when a door-to-door marketer arrived. Hayley took down the details of the offer to pass onto her brother-in-law, Tim, who was the account holder. Tim did not want to take up the offer. He was then contacted by his existing retailer about the transfer and he explained that he did not want the transfer to go ahead.

Some months later, a bill for $412 arrived for Hayley from the retailer that the door-to-door marketer had been promoting. As Hayley’s advocate, Tim contacted EWON for assistance to get the account transferred back into his name and returned to his preferred retailer.

We spoke to the new retailer who said that while they were able to do a retrospective transfer to the previous retailer, their records showed that Hayley was 19, that she had agreed to the contract and that she provided her Medicare card to the marketer. They confirmed that the company could not sign up a 16 year old.

The account was transferred back to Tim with his preferred provider. We established that Hayley was in fact 16 years old and reported this to the retailer, who advised that they would be following up the matter with the marketer who signed Hayley up. 

Retailer doesn't action cancellation within the cooling off period

87 year old pensioner Aphra was approached by a door-to-door marketer one night and felt pressured into signing a contract to transfer over  to the electricity retailer represented by the marketer. She was uncomfortable with the situation, so decided to cancel the contract.

Two days after the marketer’s visit an advocate at Aphra’s local council contacted the retailer on her behalf to request the cancellation. Aphra also posted a letter to the retailer requesting the cancellation of her contract.

Some weeks later, Aphra was advised that her account had been transferred, despite the letter and phone call made within the cooling off period to cancel the transfer. The retailer advised that they hadn’t received Aphra’s letter, but she had retained a registered post slip confirming the letter she sent had been received and signed for.

Aphra considered that her account should never have been transferred and wanted it returned to her previous retailer at no cost. EWON spoke with the retailer, who agreed to transfer Aphra back to her previous retailer without charge or penalty.