Kleenheat in hot water with the ACCC

Wesfarmers-owned Kleenheat Gas has paid $25,200 in penalties, after the Australian Competition and Consumer Commission issued two infringement notices for alleged false and misleading discount gas campaign.

Launched in April last year, Western Australia’s second largest gas retailer advertised that new customers in WA could save 35 per cent on gas charges by switching to its monthly energiser plan.

The Competition regulator alleged that this representation was false and misleading because the discount only applied to a customer’s gas usage charges, and did not include other expenses, such as the gas supply charge or account fee.

The ACCC also alleged that the overall impression created by the advertisements was that the discount would apply while the consumer remained a customer, when in fact the discount only applied for 12 months, after which it dropped to 25 per cent.

These advertisements appeared on television, radio, Facebook, Spotify, billboards, bus panels and email.

The monthly energiser plan has since been withdrawn.

ACCC acting chairman Roger Featherston said it was likely that thousands of WA customers took up the plan because of the advertisement.

“The ACCC alleges that Kleenheat made representations to potential customers which were false and may have caused some people to switch their account to Kleenheat from other gas suppliers,” Mr Featherston said.

“WA gas customers who saw the Kleenheat advertisements could easily have assumed the discount was permanent and applied to the entire bill.

“Qualifications which explain the terms and conditions of a deal must be prominent and not only in fine print, so that consumers understand what the deal involves.”