Federal Court rules in favour of ACCC in Power Saver dispute

By Keri Algar

SYDNEY, NSW: The Federal Court has declared that the maker and the former marketer of the Enersonic Power Saver device knowingly mislead consumers about the ability of the device to reduce power consumption or to save money on electricity bills.

The makers of the device, Auscha Corporation and its former marketing manager Nagarajah Rajkumar were found to have breached the Trade Practices Act 1974 when they promoted that the device could save up to 24 per cent on a domestic consumer’s electricity bill and that it had been engineered and made in Australia.

As a result of the inquiry, Auscha and Rajkumar have been ordered by the court to publish a corrective notice on its website, to send a letter to customers affected by the conduct, and to pay a contribution towards the ACCC's (Australian Competition and Consumer Commission) court costs.

ACCC chairman Graeme Samuel said, "These actions demonstrate the ACCC's concern to ensure that consumers are not misled into believing that products will save them money on energy costs when this is untrue. Suppliers of these types of devices are on notice that the ACCC is on the look-out for those who want to make spurious energy saving claims and should take immediate steps to review their marketing material or they may face similar action."

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