New Energy Tech (NET) providers are ringing in the new year with a brand new Consumer Code.

The Code is voluntary and sets minimum consumer protection standards for NET providers.

NET includes things like solar panels, energy storage systems and other emerging products and services which sit behind the electricity meter. It includes small-scale products (for inhome or small business), but not simple or off-the-shelf tech.

The Code largely reflects practices which would be required by NET suppliers already in order to meet general legal obligations such as avoiding misleading or deceptive conduct, unconscionable conduct, statutory guarantees and rules around unsolicited agreements in the Australian Consumer Law (ACL). However, being industry specific, it offers clearer guidance on the steps that NET suppliers should take to comply.

Here are some of the highlights from the Code.

  • Advertising and promotions cannot include false or misleading claims.
  • High pressure sales tactics are not allowed and you must provide extra care for vulnerable customers. Retailers must support the customer to make a decision about whether the product is fit for purpose based on their needs.
  • Buy now pay later finance (BNPL) was a big sticking point with Code. Initially banned completely, the final version of the Code allows BNPL subject to specific conditions (although it is still not allowed for any unsolicited sales).
  • There are specific rules for direct marketing and sales, such as explaining the reason for any unsolicited contact, providing specified information and leaving when asked.
  • Quotes and contracts must contain specified information – to allow for the customer to be fully informed and properly understand the product and terms. The Code also outlines specific termination rights for the customer.
  • Retailers must comply with the agreed timeframes for delivery and installation, and provide information about how to operate and maintain products. Products must also meet reasonable expectations (i.e. do what you said it will and meet the needs the customer explained to you).
  • Retailers have to respond promptly to warranty claims, properly train staff, maintain high standards of customer service and implement effective complaint handling processes.

If you breach the Code, the Administrator can require you to take steps to fix the breach (and stop it happening in future) or suspend/expel you. The bigger concern is the likely ACL breaches that flow from the same behaviour. These can result in ACCC enforcement action and multi-million dollar penalties in the worst cases.

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