The ACCC will investigate whether energy retailers are misleading consumers by promoting energy plans that promise savings or value to consumers when they actually offer poor value for the customer, following CHOICE making a designated complaint to the ACCC.
This is the first designated complaint received by the ACCC from CHOICE and the second complaint received under the new designated complaints framework.
The ACCC is satisfied that the designated complaint made by CHOICE relates to a significant or systemic market issue that affects consumers.
"Energy plans that promote 'savings' or value may entice many consumers to a particular plan and influence their decision making," ACCC Deputy Chair Catriona Lowe said.
"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."
"It is essential that energy retailers provide clear and accurate information about their energy plans so that consumers can make informed decisions when choosing an energy provider and plan," Ms Lowe said.
If the ACCC identifies conduct that may contravene the Australian Consumer Law following its investigation of the issues raised by this complaint, it may take enforcement action where appropriate. The ACCC may also prepare industry guidance or contribute to policy or law reform initiatives.
CHOICE's designated complaint to the ACCC also raises issues in relation to consumer confusion from retailers' use of identical names for plans with different rates and energy retailers prompting consumers to change plans when the recommended plan is not available to them.
These additional issues arise particularly in the context of 'Better Offer' and 'Best Offer' messages included on consumers' energy bills. Energy retailers are required to regularly include a message on bills to residential customers to alert them if they can save money by switching to a different plan with the retailer. These messages are referred to as Better or Best Offer messages.
"The issues raised by CHOICE exacerbate the challenges and confusion that consumers may face when navigating the often complex energy market," Ms Lowe said.
A recent decision by the Australian Energy Regulator (AER) requires retailers that elect to re-use plan names, to provide additional information below certain "Better Offer" messages. This aims to address any customer confusion from some retailers creating newer (and differently priced) versions of existing plans using identical plan names.
The ACCC will continue to engage with the AER and Victorian Essential Services Commission (ESC) on their upcoming review and law reform processes including on their consideration of the issues raised in CHOICE's complaint.
After careful consideration, the ACCC considers that the issues raised by CHOICE relating to the use of identical plan names in Better or Best Offer messaging with different rates, and Better or Best Offer messages with plans that consumers may not be eligible for, are most effectively addressed through the review and law reform processes currently underway by the AER and the ESC.
"The upcoming reviews by the Australian Energy Regulatory and Victorian Essential Services will provide the opportunity to consider some of the issues raised by CHOICE while reflecting on the broader issues facing consumers in the energy market."
"We thank CHOICE for the work that has gone into submitting this designated complaint. CHOICE is an important member of the ACCC's Consumer Consultative Committee and we value its insights as a leading consumer advocate group. The designated complaints framework is one of several avenues for highlighting important issues that cause consumer harm," Ms Lowe said.
The ACCC's response to CHOICE's designated complaint is available on our website
Background
A new designated complaints framework in the Competition and Consumer Act 2010 (CCA) came into effect on 1 May 2024.
Under the law, 3 bodies can be designated by the Minister as designated complainants. Currently these are Australian Consumers' Association (CHOICE), Consumer Action Law Centre, and the Council of Small Business Organisations Australia (COSBOA).
In March 2025 the Consumer Action Law Centre submitted the first designated complaint to the ACCC under the new framework. The ACCC responded to this complaint in June 2025
In May 2025 CHOICE submitted a designated complaint to the ACCC under the new framework.
A designated complainant may only make one designated complaint within a 12-month period.
Under the framework, designated complaints must meet certain criteria, including that they relate to a significant or systemic market issue affecting consumers or small business in Australia, and that they relate to a potential breach of the CCA, which includes the Australian Consumer Law, or the ACCC's powers or functions under the CCA.
The ACCC is required to assess and publicly respond to the designated complaint within 90 days. The ACCC's response must state what further action, if any, will be taken in response to the complaint.
ACCC's response to further designated complaints
In general, the ACCC may take a broad range of actions in response to a designated complaint. This may include conducting in-depth investigations into specific businesses' practices, reviews into a specific sector or issue, advocacy activities, and/or undertaking research, education or engagement.
The ACCC's response to a designated complaint may also include advising that we won't take any further action. We may do this when:
- the designated complaint doesn't meet the necessary criteria;
- we consider the subject matter of the designated complaint is already the focus of certain types of existing inquiries, reviews, investigations or legal proceedings, and has been or is likely to be adequately addressed through those other processes; or
- we consider no further action would be appropriate, having regard to the nature of the issue, the nature and extent of the harm or potential harm, and the likely impact ACCC action may have.
