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Enersonic Power Saver device marketing ‘misleading’ court rules

Enersonic Power Saver Device, marketing by Auscha Corporation Pty Ltd and its former marketing manager Nagarajah Rajkumar was marketed in a misleading way, the Federal Court has found.

Enersonic Power SaverAuscha marketed and sold the Enersonic Power Saver in 2008 and 2009, the device plugs into a standard electricity outlet and was purportedly designed to reduce the user’s electricity consumption.

The Australian Competition and Consumer Commission alleged in court proceedings instituted in July 2010, that Auscha had made a number of false or misleading representations about the Power Saver in breach of the Trade Practices Act 1974.

The court declared by consent that Auscha contravened sections 52 and 53(c) of the Act, by representing in promotional material to customers that by using the Enersonic Power Saver, domestic consumers could save up to 24% on their electrical power consumption, when no saving would be measured by electricity suppliers. In addition Auscha represented that by using the Enersonic Power Saver, domestic electricity consumers would save money, when none would be realised and promoting that the Enersonic Power Saver was designed and engineered in Australia, when in fact, it was not.

The court also declared by consent that Mr Rajkumar was knowingly concerned in each of the contraventions.

ACCC Chairman Graeme Samuel said the ACCC undertakes legal action against businesses to ensure consumers are not misled.

“These actions demonstrate the ACCC’s concern to ensure that consumers are not misled into believing that products will save them money on energy costs when this is untrue. Suppliers of these types of devices are on notice that the ACCC is on the look-out for those who want to make spurious energy saving claims and should take immediate steps to review their marketing material or they may face similar action.” he said.

Earlier this month the ACCC accepted a court enforceable undertaking from Bronze Swan Pty Ltd, a reseller of the Power Saver, in relation to similar misrepresentations made by Bronze Swan about the Power Saver device.

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David Olsen

David Olsen

An undercover economist and a not so undercover geek. Politics, business and psychology nerd and anti-bandwagon jumper. Can be found on Twitter: <a href="http://www.twitter.com/DDsD">David Olsen - DDsD</a>

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