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ACM: energy supplier HEM fined 1.1 million euros for having seriously misled customers in telemarketing calls

The Netherlands Authority for Consumers and Markets (ACM) has imposed a fine of 1.1 million euros on energy supplier Allround Hollands Energie B.V. (trading under the name Hollandse Energie Maatschappij, or HEM) for having misled consumers in telemarketing calls involving energy contracts. An ACM investigation has revealed that sellers that sold energy contracts over the phone on behalf of HEM often acted so forcefully that their actions can be qualified as aggressive commercial practices.

On numerous occasions, ACM issued warnings about HEM’s high rates as the Monitor on the consumer energy market revealed that the prices of HEM’s fixed contracts were much higher than the price cap. These expensive fixed contracts were offered to customers using misleading and often aggressive sales techniques, who consequently lost their existing contracts (which were often more economical). Sellers were not clear about the conditions and rates of the contracts. As a result, customers realized only later that they had been transferred to an expensive contract with HEM under false pretenses. Customers that wished to leave HEM often faced high early-termination fees.

Manon Leijten, Member of the Board of ACM, adds: “With its misleading and aggressive telemarketing calls, as well as with its high rates and early-termination fees, HEM seriously harmed its customers. As a result, some customers even today continue to wrongfully pay hundreds of euros more each month for natural gas and electricity. ACM considers these violations to be very serious, and has therefore imposed a fine of 1.1 million euros on HEM.”

HEM hires other companies to call consumers and other small-scale users and to sell energy contracts to them. These sellers failed to say that they were calling on behalf of energy supplier HEM, and, in the calls, they also failed to give clear information about the conditions and the rates of the contracts that they were selling. For example, sellers said that they were calling about the current contract or that they were calling offering a ‘price protection’. In addition, some consumers were told that they were being called to make sure that they would no longer be bothered by unsolicited phone calls about energy contracts. Sellers often kept pushing persistently, even if consumers had already said multiple times that they were not interested.

ACM launched the investigation into HEM because many complaints are filed about HEM’s telemarketing efforts with ACM’s consumer information portal ACM ConsuWijzer. New energy contracts are complex products. You need to be able to think about it carefully, and you need to take the time to compare different suppliers with each other. That is why ACM advises never to agree with a new energy contract during an unsolicited phone call. More tips for consumers can be found on ACM’s consumer information portal ACM ConsuWijzer.

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