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House of Assembly - Fifty-First Parliament, Second Session (51-2)
2007-11-21 Daily Xml
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BUSINESS PRACTICES, ENERGY AND TELECOMMUNICATIONS INDUSTRIES

Ms THOMPSON (Reynell) (15:22): I want to make some remarks today about some new ways of doing business, particularly within the energy and telecommunication industries, that are causing distress to some of my constituents. There is a need, within the community, to be alert to the fact that some of the old rules about how business is done no longer apply, and that the old or young, in particular, or those who are not well at the time, can be vulnerable in dealing with these new methods of doing business.

I think that many people are used to signing a written contract when they want to purchase a service or change a service provider, and many are unaware that providers can now act on verbal conversations over the telephone. These conversations are recorded and the service provider has a copy, but the consumer either does not have a copy or does not have access to one. In the last couple of weeks my office has dealt with two cases that illustrate both the need for more awareness of these new methods and also just how vulnerable people can be.

Mrs E was, at the time she was contacted by the energy provider, undergoing radiotherapy and not feeling at all well. She is also the sole carer of her husband, who suffers from Alzheimer's. She was not really aware, when she was answering a series of questions, that the whole conversation was being taped and that she would find herself receiving two energy bills. Mrs E answered a series of questions such as 'Do you want to save money', and during that time was answering yes almost as a reflex. She discovered that these 'yeses' were being taken as an agreement to switch providers and enter into a new contract.

When she received two lots of bills she was extremely concerned and took the matter up with my office and with the energy ombudsman, who said that it was agreed by the service provider that Mrs E did sound confused and reluctant when she was approached by the new provider but she was signed up in any case. The provider did eventually agreed to discontinue Mrs E's contract without penalty, but dealing with the situation, after she recovered her health, took up much time and energy which she did not really want to spend on this matter.

The case of Mr P is somewhat different. He is a small business operator and is used to dealing with salespeople on a daily basis. But he is in dispute about what was offered to him by a door to door energy provider. He claims he was offered free green energy, a shopping discount card, and a reduction of at least $150 on his current bills if he switched providers. None of these things was delivered. All his attempts to get what he believed he was promised have failed, with a range of excuses being offered by the provider, including the fact that the salesperson should not have made the offer of a shopping card as that offer had expired.

Mr P is extremely unhappy. His case is being investigated by the energy ombudsman, but Mr P just wants what he believes he was promised without a lengthy investigation. While this was a face-to-face situation, there was no real record of what was offered, no guarantee of what was promised, and Mr P, in fact, found that rather than going down $150 his energy bill went up about $150.

These offers often come not only over the phone but on the doorstep at a time when we are not really ready for them. We are not focused on the contract, and things are not recorded very adequately in just a few notes at the door. Often they are followed up with phone calls, which, again, are recorded by the provider, but there is no record by the consumer.

Time expired.

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