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ACM fines energy supplier HEM 1.1 million euros for misleading telemarketing practices

02.04.2024 | 🇳🇱 Dutch competition authority

The Netherlands Authority for Consumers and Markets (ACM) has fined energy supplier HEM 1.1 million euros for using misleading and aggressive telemarketing tactics to sell expensive energy contracts to consumers.


The Netherlands Authority for Consumers and Markets (ACM) imposed a fine of 1.1 million euros on energy supplier Allround Hollands Energie B.V. (trading as Hollandse Energie Maatschappij, or HEM) for engaging in misleading and aggressive telemarketing practices. ACM's investigation found that sellers acting on behalf of HEM used forceful and deceptive tactics to sell expensive fixed energy contracts to consumers, leading to customers unknowingly switching to costly contracts with high early-termination fees. The sellers failed to clearly disclose key contract terms and rates, and some consumers were falsely led to believe the calls were about existing contracts or price protection. The violations resulted in customers paying significantly more for natural gas and electricity, with some continuing to overpay each month. HEM's actions were deemed serious by ACM, warranting the substantial fine. The investigation was initiated following numerous complaints received by ACM about HEM's telemarketing practices. The affected industry includes energy suppliers and telemarketing companies involved in selling energy contracts. The legal areas concerned are consumer protection and competition law. The competition law issues involved are misleading advertising, aggressive commercial practices, and abuse of a dominant position.

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