Protect Victorians from energy upgrade telemarketers

Submission to the Banning Telemarketing Under the Victorian Energy Upgrades Program consultation

VCOSS supports the proposed ban on telemarketing under the Victorian Energy Upgrades (VEU) program.

Such a ban would represent a strong consumer protection against misconduct by marketing agencies employed by accredited VEU providers, a problem that is increasing in frequency. This would also bring regulation of VEU-related marketing into line with regulation of the energy retail market.

As stated in the consultation paper by the Department of Energy, Environment and Climate (DEECA), reported instances of misconduct such as persistent unwanted calls, abuse and pressure tactics, and misleading and deceptive conduct have been increasing over the 2020-2023 period. There were 1,645 complaints in 2022 alone, and likely many more that went unreported. 

To make matters worse, the Essential Services Commission and Australian Communications and Media Authority have reported that in these cases there are very few avenues for consumers to make a complaint and limited ability for regulators to enforce the VEU Code of Conduct or Australian Consumer Law. Consumers are not getting the proper protections that they are entitled to under the law. 

Markets like that created by the VEU program can be complex for many consumers to navigate. These challenges are heightened for some groups including older Victorians, those from newly arrived communities and those from culturally and linguistically diverse backgrounds, putting them at significant risk of predatory behaviour. 

As the VEU program has been created by the Victorian Government and forms an important pillar of the state’s efforts to reduce greenhouse gas emissions, the government must ensure that consumers are able to participate fairly and safely in the program. We welcome and acknowledge the Victorian Government initiating this consultation as a key step in strengthening consumer protections. 

VCOSS supports a ban on all telemarketing to customers of the VEU program.

We would also urge that the ban include doorknocking. We also call for the ban to include contacting previous customers of the VEU program by telemarketing and doorknocking.

Digital marketing (texts, emails, social media, websites) and direct marketing (stalls, leaflets, brochures, mailers) should be sufficient for accredited providers of the VEU program to advertise their products, as long as these forms of marketing follow the VEU Code of Conduct and conform to Australian Consumer Law.

VCOSS would prefer that this ban be put in place sooner rather than later, to ensure that customers are given greater protection from misconduct as soon as possible.

As noted in the DEECA consultation paper, previous bans of this kind have been put in place with a brief period of notice for providers, a three-month period for the Solar Homes program, and a six-month period for traditional energy retailers. We see no reason that a ban on telemarketing and doorknocking in the VEU program should be preceded by a notice period that exceeds three to six months, and our preference is three months. 

VCOSS supports the suggestion in the consultation paper that the Victorian Government continue or expand its existing marketing of the VEU program, to ensure continued uptake of energy efficient appliances by Victorian consumers.