Advertisment
The advertisement was a direct marketing email. The subject line stated,
‘Stay with us on a new discounted rate.’
The body of the direct marketing email stated:
“Your contract is soon coming to an end.
We do our best to deliver value to all our customers. That is why we’re inviting you to stay with us for another year on an EnergySaver plan and a new discounted rate of 18%*.
Moving to an EnergySaver plan is simple
If you are happy to continue on the EnergySaver Price Plan, simply click the ‘sign up now’ button. We’ll do the rest.
Sign up for another 12 months on a discount of 18%*”
A link was included in the advertisement that was titled ‘Sign up now.’
The advertisement ends with the line: ‘If you are an Electricity customer, see full details of the EnergySaver Electricity 18%.
Complaint
The complainant said that on enquiring about their current and the new discounted rate, they discovered that the discounted rate was higher than their current rate. They considered that the advertising was misleading.
Response
The advertisers stated that once customers completed their 12-month contract, they were transitioned from a discounted promotional electricity rate to the “ValueReward” plan, which was their standard pricing plan. The advertisers added that the reason for the email was to encourage customers nearing the end of their contract to sign up for a new 12-month term in return for a discounted electricity rate. If they chose not to renew, they would move onto the “ValueReward” plan.
The advertisers further stated that the advertisement included a link to a price schedule outlining both the standard EnergySaver rates and the effective discounted promotional rates. The advertisers asserted that the 18% discount was not misleading, as they believed all relevant details were clearly outlined in the terms and conditions, as well as in the linked PDF document.
Conclusion
Complaint Upheld:
The Independent Complaints Council considered the detail of the complaint and the advertisers’ response.
The Council noted that the advertisement had included a headline claim stating ‘stay with us on a new discounted rate’ together with the statements ‘we’re inviting you to stay with us for another year on an EnergySaver plan’ and ‘If you are happy to continue on the EnergySaver Price Plan’ within the body of the email which they considered created the impression that the advertised discount applied to the complainant’s current rate, rather than the rate in the new contract. The Council was of the opinion that the claim could be interpreted as meaning continuity of the existing plan and price structure.
The Council acknowledged that consumers exiting a contract with the advertisers may revert to a standard default rate, but this was not clearly stated in the advertisement.
The Council considered that the overall impression of the advertisement could mislead and therefore was in breach of Sections 4.01 and 5.05 of the Code.
Action Required:
The advertisement must not reappear in its current form.
