The Federal Court in Sydney has declared that Global Green Plan Ltd breached a court enforceable undertaking given to the ACCC in December 2009. Global Green Plan Ltd had given the undertaking in response to concerns the Australian Competition and Consumer Commission had in relation to its retail 'GreenPower' business, GreenSwitch.
During 2006 to 2008 GreenSwitch was accredited to buy Renewable Energy Certificates (RECS) on behalf of consumers under the National GreenPower Accreditation Program. Whilst operating GreenSwitch, Global Green Plan accepted payments from customers on the proviso that the money would be used to buy the RECS. However, not all of the money provided to Global Green Plan by customers was used to purchase the RECS. The shortfall amounted to 4,137 RECS which Global Green Plan should have purchased, but did not.
Along with declaring that Global Green Plan breached the undertaking, the court also ordered, by consent, that Global Green Plan now buy the outstanding RECS by 30 November 2010 and pay the ACCC's legal costs.
"This outcome demonstrates the importance the ACCC places on monitoring businesses in the 'green' space," ACCC chairman Graeme Samuel said today.
"This conduct affected consumers who wanted to do their part for the environment. The consumers provided money to Global Green Plan on the basis that it would be used to support renewable energy," he said.
According to the undertaking, Global Green Plan was to make up for the shortfall by purchasing the outstanding 4,137 RECS by March 2009. When it failed to do so, the ACCC instituted proceedings in the Federal Court for breach of the undertaking. Global Green Plan admitted that it hadn't bought the RECS and that it had breached the undertaking.
Mr Samuel said that the court's findings maintained the integrity of the undertaking process.
"The acceptance and enforcement of undertakings is an important part of machinery in the administration of the Trade Practices Act. They are a useful tool in resolving matters without the need for costly and lengthy court processes. However, if an undertaking is offered and accepted, it must be complied with. The ACCC will not hesitate to enforce undertakings in court where necessary."