Lying salesman costs power company $1.5 million penalty

The door-to-door salesman, engaged by a marketing contractor, made false representations and engaged in misleading and deceptive conduct during uninvited calls in Coburg. He reportedly claimed he was not selling anything and also made false statements about prices while promoting AGL’s gas and electricity services.

The Federal Court ordered a $1.48 million penalty against AGL Sales and a separate $70,000 penalty against AGL South Australia following ACCC legal action. The marketing contractor CPM Australia was also ordered to pay $200,000 for its role in the door‑to‑door marketing.

The Australian Competition and Consumer Commission (ACCC) took legal action in the Federal Court in Melbourne, which resulted in the penalties against AGL entities and the marketing contractor for misleading door‑to‑door sales practices.

Although contractors carried out the sales, the court fined AGL because it was the supplier on behalf of which the negotiations were being conducted — making AGL legally responsible for the conduct of those selling its services.

The court found the salesman made false representations and engaged in misleading and deceptive conduct during uninvited visits, including denying he was selling anything and providing false information about prices.

Yes. AGL stopped using doorknocking to sell its products in March, describing door‑to‑door sales as a "risky sales technique".

CPM Australia was the marketing contractor engaged to sell AGL’s services and the court found it had a role in the contraventions. CPM was ordered to pay $200,000 for its part in the door‑to‑door marketing campaign.

The case shows that misleading door‑to‑door sales practices can lead to significant regulatory action and financial penalties. For consumers it highlights the need for caution with uninvited sales visits; for investors it underlines that consumer‑protection breaches can create legal costs and public scrutiny for a company.