Minister for Fair Trading Stuart Ayres and NSW Energy & Water Ombudsman (EWON) Clare Petre issued a joint warning to all consumers to be on the look-out for cold callers and online traders claiming to sell energy saving devices for domestic use.
Mr Ayres said NSW Fair Trading had investigated a number of consumer complaints about the devices, which can cost up to $2,000 each.
“We have proved under stringent testing conditions that these devices are a complete con,” he said.
“These power correcting units, which traders are claiming can decrease energy bills by up to 25 per cent, simply do not work under domestic conditions.
“The device itself consumes power and will increase your energy bill when connected.”
Mr Ayres said Fair Trading had confiscated 216 of the devices and is preparing enforceable undertakings for the signature of the director of Earthwise Power Savers Pty Ltd.
“This company has now agreed to immediately cease supply, remove its website, deregister the company name and hand over all remaining stock to Fair Trading,” he said.
“We are also demanding this former company director inform their supply network to similarly cease all promotion and supply.”
Fair Trading began its investigation into Earthwise Power Savers after EWON was alerted to the Belmont company’s in-home marketing and high pressure sales tactics by the concerned neighbour of an elderly Mayfield resident.
“The sales tactics were particularly reprehensible, as they appealed to vulnerable consumers including people on pensions or benefits,” Ms Petre said.
“These are the people who are really struggling to pay high energy bills, yet like this Mayfield resident, faced further financial burden after being pressured to part with $1,398 for a worthless device.”
Mr Ayres said under a deed of release Fair Trading has donated the devices with a commercial value of $250,000 to the University of Wollongong, TAFE NSW and EWON to be used for educational purposes.
To watch a video of the power saving devices being tested, go to Fair Trading’s YouTube channel at https://www.youtube.com/watch?v=ky1MotsVLGU
