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ACMA finds Energy Deal and 1st Energy in breach of telemarketing laws

Two separate Australian Communications and Media Authority (ACMA) investigations have led to action against Energy Deal and 1st Energy for breaching telemarketing rules.

 

One investigation found marketing company, Enxo Energy Pty Ltd (trading as Energy Deal), failed to terminate marketing calls after the recipient had indicated they did not want the call to continue. 

The ACMA has accepted a court-enforceable undertaking from Energy Deal which includes an independent review of its policies and procedures.

ACMA Chair Nerida O’Loughlin said the ACMA had found Energy Deal’s actions were a breach of the Telemarketing Industry Standard, which set out minimum obligations for marketers to provide information to call recipients.

“When someone indicates that they don’t want to continue with a marketing call, the sales agent must terminate the call,” Ms O’Loughlin said.

“Businesses need to know we are monitoring telemarketing activity closely and will act when marketing practices don’t meet acceptable standards.”

1st Energy Pty Ltd also faced regulatory action, paying a $2,100 infringement notice after the ACMA investigation found it had failed to include provisions in its telemarketing contracts that require compliance with Australia’s telemarketing laws.

“The law is clear. Businesses must ensure that outsourced telemarketers are compliant with Australia’s telemarketing rules and this must be included in contractual arrangements,” Ms O’Loughlin said.

“Following this investigation, 1st Energy has amended all its contracts.”

The energy retail supply industry has accounted for almost 7 per cent of telemarketing complaints received by the ACMA this year.

Penalties for businesses in breach of Australia’s telemarketing laws include formal warnings, infringement notices or action in the Federal Court.

Over the last 18 months, businesses have paid a total of $464,100 in infringement notices for breaking spam and telemarketing laws.

To make a complaint about telemarketing or to register your number on the Do Not Call Register, go to donotcall.gov.au or call 1300 792 958.

For media enquiries, please contact:

Alex McGregor:

0438 375 776 

media@acma.gov.au

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