Revised enforcement action against accredited business over alleged misleading social media marketing activity

A commission investigation identified that a business contracted by accredited business Elite Sales Engine Solutions Pty Ltd – trading as Elite Smart Energy Solutions – generated social media marketing advertising that allegedly breached the Victorian Energy Upgrades program code of conduct.

The alleged non-compliant social media advertising implied upgrades are provided by the Victorian Government, rather than Elite Smart Energy Solutions as an accredited business under the program. This may have misled consumers about who was providing upgrades.

This led to the creation of energy efficiency certificates for 214 weather sealing upgrades in residential premises across metropolitan Melbourne and regional Victoria associated with the alleged non-compliant marketing activity.

While a contractor carried out the alleged non-compliant marketing activity, Elite Smart Energy Solutions was responsible as the accredited business for ensuring it complied with program rules.

Accredited persons are reminded that they must have appropriate systems and processes in place to ensure the compliance of installations carried out on their behalf and if they don’t, it may impact on their eligibility to have their accreditation renewed.

Alleged breaches

The alleged breach of the code of conduct related to the creation of 597 non-compliant Victorian energy efficiency certificates (VEEC) for 214 weather sealing (activity 15) upgrades, which were associated with alleged non-compliant lead generation and marketing activity. Elite Smart Energy Solutions voluntarily withdrew five of the certificates prior to the commission’s decision.

The code of conduct requires accredited persons to take reasonable steps to ensure that a person understands the upgrade is not being undertaken by the Victorian Government. This rule is to prevent consumers being misled about who is providing the upgrades.

Our determination

We decided:

• To impose conditions on Elite Smart Energy Solution’s accreditation relating to staff training requirements and its lead generation and marketing practices in connection with the Victorian Energy Upgrades program.
• Require the surrender of 592 non-compliant VEECs valued at over $50,000 (certificate value is based on the current spot price of $87).

On 29 November 2023, we took the following enforcement action against Elite Smart Energy Solutions:

• Suspension from the Victorian Energy Upgrades program for a period of 41 business days in relation to its activities under the program.
• Requirement to surrender non-compliant Victorian energy efficiency certificates associated with the alleged misconduct.

Elite Smart Energy Solutions applied for a review of the decision to suspend its accreditation. The period of suspension did not have effect during the review period.

The above decision reflects the outcome of our review. A copy of the archived news item for the original enforcement action on 29 November 2023 decision is available below.