Energy Accreditation Training Module 2

? Marketing Risks 1 Your Legal Obligations 2 Privacy Act 3 4 A. B. C. D. ? 4 Now that you’ve heard about the marketing risks, let’s move onto your legal obligations. We’re going to cover the 2 types of legislation that are impacted.

Consumer Protection Legislation Energy Specific Legislation 1. Consumer Protection Legislation Marketing Risks 3 Unconscionable conduct 1 Misleading and deceptive conduct 5 Full disclosure 2 False or misleading representations 4 High pressure sales 6 Respect customer privacy 2. Energy Specific Legislation The marketing risks that we covered in module 1 impact 2 types of legislation: Consumer Protection Legislation - The Competition and Consumer Act is a national law that protects customers buying goods and services from businesses. Energy Specific Legislation - Under the laws governing the energy industry, Click Energy is obliged to provide their staff and any agents with a broad understanding of the regulatory / legal requirements of selling and supplying energy to consumers.

Consumer Protection Legislation 1. Consumer Protection Legislation The Competition and Consumer Act is a national law that protects customers buying goods and services from businesses. Within the Consumer Protection Legislation there are 2 relevant laws to be aware of: 1. Competition and Consumer Act (CCA) 2010 2. Australian Consumer Law (ACL) 1 January 2011 – which forms part of the CCA.

Energy Specific Legislation 2. Energy Specific Legislation Under the laws governing the energy industry, Click Energy is obliged to provide its staff and any agents with a broad understanding of the regulatory / legal requirements of selling and supplying energy to consumers. The 2nd type of legislation is Energy Specific, which provides the industry benchmark on how energy retailers commence, apply, and terminate contracts with customers. Let’s take a closer look at both…

Australian Consumer Law Energy Retail Codes Australian Consumer Law (ACL) State based energy specific legislation regulates a number of different aspects of the legal relationship between Click Energy and the customer. The ACL came into force on 1 January 2011 and is a single, national consumer law giving consumers the same protections, and businesses the same obligations across Australia. In NSW, QLD & SA it is the National Energy Retail Rules and in VIC, the Energy Retail Code. The ACL regulates the negotiation of unsolicited consumer contracts (i.e. door to door or outbound sales), including contact hours and disclosure requirements. This state based energy specific legislation sets out the MINIMUM standards that apply to the sale / supply of energy to relevant consumers. The ACL includes existing misleading and deceptive conduct and unconscionable conduct provisions and new unfair practices provisions. The Energy Retail Codes are broken out into: The National Energy Retail Law (NERL), Any relevant state-specific Electricity and Gas Acts and regulations or codes - also apply to Click Energy’s sales and marketing activities. 2. the federal Energy Retail Code (ERC), This regulates the supply of energy and provides the industry benchmark on how energy retailers commence, apply and, terminate contracts with customers. This impacts: 1. Connection / Disconnection; and 2. Billing. These state specific regulations & codes set the MINIMUM standards for the sale / supply of energy to relevant consumers. The Competition and Consumer Act (CCA) contains overarching laws that protect consumers buying goods and services from businesses – this includes the Australian Consumer Law. This law is the single, national consumer law giving consumers the same protection and businesses the same obligations across Australia, It regulates the negotiation of consumer contracts; and includes existing misleading and deceptive conduct and unconscionable conduct provisions and new unfair practices provisions.

4 major areas of governance for the Energy Specific legislation Connection Disconnection Credit Management Billing

Explicit Informed Consent (EIC) Explicit Informed Consent (EIC) is a mandatory requirement on ALL sales EIC ensures that your customers are knowingly entering into an agreement with Click Energy and that they understand all obligations. This means that the customer has been told clearly, fully and in plain English all matters relevant to the consent of the customer. Explicit The customer knows exactly what they are consenting to and fully understand all aspects of the agreement. Informed The customer has verbally consented to the terms and all relevant matters as explained by our call centre agent. (or tick EIC check boxes) Consent Finally, it’s important to also understand Explicit Informed Consent, which is mandatory on all sales. There are 3 components: 1. Explicit - This means that the customer has been told clearly, fully and in simple terms matters relevant to the consent of the customer, 2. Informed - The customer knows exactly what they are consenting to and fully understand all aspects of the agreement, 3. Consent – The customer must complete the EIC check boxes during the sign up process or provide verbal EIC when they place a call to one of ACN’s energy partners.

Gaining Explicit Informed Consent 1. IBO provides full disclosure of the agreement the customer has selected. Online Sign Up 2. The Microsite must be followed with all agreement detail discussed and required personal detail captured securely. 3. The Customer must read all required EIC scripts/terms and conditions on the Click Energy Microsite provided by Click Energy. 4. Should the customer understand and accept these terms and conditions, the Customer completes the online sign-up on the Click Energy Microsite by ticking the relevant EIC boxes. There are 2 ways to gain explicit informed consent from your customer: 1. Online Sign Up Customer completes the online sign-up on the Click Energy Microsite by ticking the relevant EIC boxes at the conclusion of the sales process,

Gaining Explicit Informed Consent 2. Telephone Sign Up 1. Click Energy call centre agent speaks with the customer to confirm the details of the contract. 2. Click Energy call centre agent must follow the EIC voice script as provided by Click Energy. 3. For ALL telephone sales, calls are recorded. This will therefore include a voice recording of the customer giving their explicit and informed consent (EIC) to enter into an agreement with Click Energy. 2. Telephone Sign Up Click Energy Call Centre agent speaks with the customer to confirm the details of the contract and obtains EIC in a recorded call. By obtaining their Explicit Informed Consent (EIC), this indicates their agreement to enter into a contract with Click Energy. This concludes the Your Legal Obligations module.