Sumo court proceedings 2024

The Supreme Court of Victoria has ordered energy retailers Sumo Power Pty Ltd and Sumo Gas Pty Ltd (together, Sumo) to pay penalties totalling $10 million for unlawful door-to-door marketing and failures related to its best offer messaging.

The Essential Services Commission also received other orders from the Supreme Court, including contravention orders, adverse publicity orders, the order for the implementation of a quality assurance system, an injunction and an enforceable undertaking.

The court noted that the civil penalty and other relief granted by the court 'will have a significant and appropriate deterrent effect both to Sumo and to others'.

In particular, the Supreme Court orders require Sumo to:

• Pay $10 million in pecuniary penalties and $200,000 of the commission’s legal costs.
• Not engage in any door-to-door marketing of energy products or services for three years.
• Publish public notices in The Age and Herald Sun newspapers and on its website about the outcome of the proceedings and consumer rights under Victoria’s energy laws.
• Set up and maintain for a period of three years a ‘best offer messaging’ quality assurance process.

Under the enforceable undertaking, Sumo will:

• Pay $800,000 to the Consumer Action Law Centre in Victoria to fund a three-year consumer education campaign about consumer rights under Victoria’s energy laws.
• Set up and maintain for a period of five years a new compliance management system consistent with relevant Australian Standards in respect of Victoria’s energy laws.