ACM: Energy suppliers must stop using fake comparison services

When selling energy contracts, energy suppliers cannot use telemarketers that falsely pose as independent energy comparison service providers. In a letter to all energy suppliers, the Netherlands Authority for Consumers and Markets (ACM) has informed them of this rule. Energy suppliers that use such ‘fake comparison service providers’ must show ACM what measures they take to ensure full compliance with the rules.

For quite some time now, ACM has been conducting an investigation into businesses that engage in telemarketing activities. On the basis of reports received regarding unsolicited phone calls, ACM initially focused its investigation on the telecom sector and the energy sector, as these are the sectors about which it has received the most reports. These practices have come to light in part because of telemarketing calls that were examined.

ACM’s investigation reveals that telemarketers that sell energy contracts often pose as independent advisors who wish to help consumers in choosing the best energy contract. In practice, however, no independent advice is provided because the commission that telemarketers receive from suppliers influences the outcome of the comparison. As a result, it is not the consumers’ interests that come first in this ‘comparison’, but rather the sellers’ interests. It is highly likely that consumers end up taking out contracts that do not meet their specific needs.

ACM's oversight

ACM ensures that energy suppliers and, for example, telecom providers comply with the rules regarding telemarketing. The business that ultimately concludes the contract with the consumer is always responsible for the entire sales process. With regard to energy contracts, that is the energy supplier. Since ACM sees sales with the use of ‘fake comparison service providers’ predominantly in the energy sector, it has reminded all energy suppliers of their responsibility. Suppliers must subsequently show ACM how they will ensure that businesses selling contracts for them or on their behalf comply with the rules.

Repeat warning against telemarketing practices involving energy contracts

ACM has often warned against misleading sales practices involving energy contracts before. Energy contracts are complicated products, which should not be taken out over the phone, including unsolicited phone calls. The contracts that are offered by telemarketers are usually not the best choice. Chances are you will end up paying more than you expected and be stuck with a contract that does not meer your specific needs. That is why ACM advises consumers not to accept an offer made over the phone for a new energy contract just like that. Take your time to compare the offered contract with your current contract as well as with offers from other providers, and do not be pressured into making a quick decision. Consumers that have become victims of these types of ‘fake comparison service providers’ can file reports with ACM’s consumer information portal ACM ConsuWijzer.