ACCC Investigates Energy Plans That May Mislead Consumers

Published: 19 August 2025

Source: Australian Competition and Consumer Commission (ACCC)

The Australian Competition and Consumer Commission (ACCC) has announced an investigation into whether some energy retailers are misleading consumers with energy plans that promise "savings" or "value" but may actually deliver poor value. This follows a formal complaint lodged by consumer advocacy group CHOICE under the new designated complaints framework.

This is the first designated complaint the ACCC has received from CHOICE and only the second overall since the framework began in 2024.

Why the ACCC is Investigating

According to ACCC Deputy Chair Catriona Lowe, plan names and marketing claims suggesting savings may unfairly influence consumers’ decision-making:

“We are concerned that consumers may be misled or deceived by plan names or descriptions of plans that offer ‘savings’ that are not genuine, or that consumers may be discouraged from switching to cheaper plans that are available to them.”

The ACCC stressed the importance of clear and accurate information from energy retailers so consumers can make informed choices in what is already a complex energy market.

If breaches of the Australian Consumer Law are identified, the ACCC may take enforcement action. Alternatively, the regulator may issue industry guidance or contribute to broader policy and law reform initiatives.

Issues Raised by CHOICE

CHOICE’s complaint went beyond misleading “savings” claims and also raised concerns about:

• Identical plan names with different rates – some retailers use the same plan names for different pricing structures, creating unnecessary confusion.

• Better Offer / Best Offer messages – energy bills must include messages advising if a consumer could save by switching plans. CHOICE argued that in some cases, these recommended plans either weren’t available or weren’t the cheapest option.

The ACCC acknowledged that these issues could significantly confuse consumers, especially when navigating an already complicated energy market.

Regulatory Reform on the Horizon

The Australian Energy Regulator (AER) recently required retailers who re-use plan names to provide extra information alongside Better Offer messages to reduce confusion.

The ACCC has confirmed it will continue to work with both the AER and the Victorian Essential Services Commission (ESC) as they review these consumer protection measures.

What This Means for Businesses

While this particular investigation focuses on energy retailers, it’s a strong reminder for all businesses that:

• Marketing claims must be accurate, transparent and not misleading.

• Plan names, product labels, or service descriptions that create confusion or false impressions can lead to regulatory scrutiny.

• The ACCC is increasingly responsive to complaints from consumer advocacy groups under the new framework — and enforcement action can follow quickly.

How Bane Legal Services Can Help

At Bane Legal Services, we are not a law firm and we do not provide legal advice. Instead, we draw on more than 30 years of business experience to act as your trusted legal matchmaker — connecting you with the right commercial lawyer who understands the ACCC’s compliance expectations and the complexities of consumer law.

If your business operates in a highly regulated sector — whether energy, retail, franchising, or beyond — ensuring your marketing practices and consumer disclosures are legally compliant is essential. The right legal advice can protect your business from costly investigations and enforcement action.

Source: Original media release published by the ACCC on 19 August 2025.