An aggressive Genesis Energy advertising campaign has earned a slap on the wrist from the Advertising Standards Authority (ASA).The campaign, in print and online during April and May this year, targeted Queenstown customers using the phrase “with lo
An aggressive Genesis Energy advertising campaign has earned a slap on the wrist from the Advertising Standards Authority (ASA).
The campaign, in print and online during April and May this year, targeted Queenstown customers using the phrase “with lower electricity rates than Trustpower, we can save you money”.
The ads claimed savings of $220-$290, with fine print declaring that the figures were an “indicative guide only” and based on current Powerswitch plan pricing estimates.
TrustPower laid a complaint with ASA that the ads were misleading on several counts:
- that the ads implied all Genesis rates were lower than TrustPower rates or that all customers would save by switching to Genesis; and
- that the comparisons drawn were ambiguous, or too simplistic for the complexities of the electricity market.
The ASA panel accepted that Genesis had tried to base the advertised savings on “credible and reliable sources as far as they were available to them”.
But it found that the ads nevertheless suggested that the savings offered by Genesis “may be greater than they actually were” and were likely to deceive or mislead consumers.
The offending ads have since been withdrawn or modified.
The ASA panel expressed concern that Powerswitch, a tool to help consumers research the best deal for their individual circumstances, was being used to make broad savings claims.
Powerswitch is run by Consumer NZ with support from the Ministry of Consumer Affairs.
