ComCom charges Contact Energy for alleged ‘misleading’ promotion

Electricity company Contact Energy is facing seven charges brought by the Commerce Commission under the Fair Trading Act for allegedly misleading customers in an advertising promotion which offered fuel discounts with AA Smartfuel alongside electricity plans.

The advertising campaign involved a number of advertising platforms, including emails, TV, radio, newspaper, bus, digital billboard and online advertisements.

It ran from April 4, 2017 when Contact joined the AA Smartfuel rewards scheme as a participating retailer to July 1, 2017, the commission says.

The campaign offered fuel discounts “every month” to new and existing customers who signed up or stayed on certain Contact electricity plans.

The commission alleges Contact Energy made false or misleading representations about the offers, by failing to adequately disclose key information in the advertising, including that the discount was only accessible once per month, and rewards could only be redeemed on one fill, and up to a maximum of 50 litres of fuel.

The case will be called in the Wellington District Court on April 29.

The commission says it will make no further comment at this time as the matter is before the court.

Contact Energy says it is helping the Commerce Commission with the case and hopes this matter can be resolved as soon as possible.

“Contact is not able to make any further comment as the matter is subject to a legal process.”