Breaking News: Selectra Fined 400,000 Euros for Deceptive Energy Price Comparison Practices
In recent news, Selectra, a leading online platform for comparing electricity and gas prices, agreed to pay a fine of 400,000 euros instead of facing a criminal trial for suspected deceptive commercial practices. Over the course of a two-year investigation between 2020 and 2022, agents from the General Directorate for Competition, Consumer Affairs and Fraud Control (DGCCRF) discovered that Selectra had engaged in multiple fraudulent practices towards consumers.
One of the key findings by consumer police was that Selectra had highlighted prices from a specific energy supplier on its French websites with non-existent discounts, false statements suggesting high financial attractiveness, and ambiguous language concealing the fact that the supplier’s kWh price was actually higher than the regulated rate. Additionally, Selectra was accused of hiding its commercial intentions to insert links on public bodies’ websites aimed at informing consumers.
In response to these allegations, Selectra stated in writing that they had rectified errors and updated rules for monetizing content. They also claimed to have implemented controls to prevent individual deviations in communication. Furthermore, they were developing technology such as artificial intelligence to automatically update energy prices. Despite being founded in 2007 as an energy price comparator and expanding into other markets like insurance and banking with a turnover of 96 million euros worldwide in 2023, this case marks the first time an energy price comparator has faced conviction due to close scrutiny by the DGCCRF and consumer associations.
If Selectra had not accepted the transactional fine, it could have faced criminal charges with penalties up to 10% of its annual turnover potential prison sentences for managers and fines. However, consumer protection associations are warning injured consumers may still take legal action against Selectra indicating group actions are possible. Comparators in the energy market are seen as particularly risky due to competition and financial motivations of suppliers to appear on comparison sites. However, consumer advocates emphasize fairness is crucial on such platforms to protect consumers from misleading practices
