New laws crack down on dodgy energy operator tactics

Dodgy marketing tactics tricking vulnerable Victorians will be outlawed from Friday.

A new law will ban energy operators from door-to-door sales and cold calling to promote “misleading advertising”.

Under the new legislation, cheap deals for customers who threaten to switch providers will also be banned.

CEO of the Consumer Action Law Centre, Gerard Brody, says the changes will encourage energy companies to make their best offers upfront.

“What tends to happen is companies target those that are more likely to switch and give them a better deal and then those who are disengaged or less able to switch may end up paying a penalty, or effectively a loyalty tax, if you like,” he told 3AW Breakfast.

Mr Brody applauded the new law, which he says will protect the vulnerable.

“Not only are these tactics annoying, they can be really abusive practices that harm people experiencing vulnerability,” he said.

Press PLAY below to hear more about the new law