Global Marketing Bridge and its executives fined for having misled customers in telemarketing calls involving energy contracts

The Netherlands Authority for Consumers and Markets (ACM) has fined telemarketing firm Global Marketing Bridge B.V. (GMB) 400,000 euros for having misled consumers in telemarketing calls involving energy contracts. Since the two executives of GMB directed their employees that were making the misleading calls, ACM has fined them 50,000 and 65,000 euros, respectively.

ACM’s investigation has shown that consumers were misled by GMB’s telemarketers. Sellers did not clearly state at the start of the conversation that they were calling to sell an energy contract. Instead, they gave other reasons (often false ones). They also failed to say who they were and on behalf of what company they were calling. Instead, they said, for example, that they were working for the system operator or that they were calling on behalf of the current energy supplier.

Here are some examples of what was said in these telemarketing calls:

“Sales representative: Hi, this is [name sales representative] from the Consumer consultancy firm.”

“Sales representative: I’m just calling you on behalf of Enexis, your current system operator for electricity and natural gas with regard to your current energy contract.”

In several conversations, the salesperson is not clear about the fact that they are selling an energy contract:

“Consumer: Okay, but you know what: all of you just want to talk, but I think I’ll just stay where I am right now.
Sales representative: Right, but I didn’t say anything about switching, did I, ma’am? You’ll remain a customer of ours. Again, you’re already a customer with us, right? I’m not some random seller or supplier or something like that. You’re already in our system.
Consumer: I’m not even sure if I’m in your system.”

“Consumer: I’m just gonna switch to Eneco, and that’s it for me.

Sales representative: Eneco is ranked fifth in your area. So, they’re not the most economical option. You’ve automatically been paired with the number-one supplier. They have the rates ready for you. So, I’m just gonna send you the confirmation.”

These types of misleading commercial practices are illegal. That is why ACM takes action against them. In addition to the actions against this intermediary, ACM had previously already fined energy suppliers that offered energy contracts through intermediaries. Energy suppliers are also responsible for ensuring that the sellers of their contracts comply with the rules. That is why suppliers must pay close attention through which intermediaries they offer their contracts.

Manon Leijten, Member of the Board of ACM, explains: “Aggressive and misleading customer-acquisition practices when selling energy contracts results in consumers often being switched to different suppliers against their wishes. That is because they’re being called under false pretenses and because sellers use all kinds of tricks to have consumers say ‘yes’ anyway. During such conversations, consumers are also not able to compare offers with the rates and conditions of other suppliers, and often also don’t know what kind of contract they have entered into. That is why ACM takes action by fining the company and the executives.”

ACM has launched an investigation into customer-acquisition practices over the phone through intermediaries, because ACM’s consumer information portal ACM ConsuWijzer has received many complaints about such practices. GMB and its executives still have the opportunity to file an objection and an appeal against the fines.

Recommendations for consumers

ACM points out to consumers that energy contracts that are offered through unsolicited telemarketing calls are usually not the best choice. Taking out a new energy contract is an important purchase that you need to think about carefully and where you need to properly compare the new contract or the adjusted rates with the offers of other suppliers. That is why ACM advises never to agree with a new energy contract during an unsolicited phone call.

Many people also find it annoying when companies or organizations make unsolicited calls. That is why companies need to comply with telemarketing rules. Companies are only allowed to call consumers to sell something if the consumer has given consent for such calls or if they are or were a customer.