Trading Standards team hails "David and Goliath" victory after energy company fined £1.25m

The Trading Standards team at Surrey County Council has hailed a £1.25m fine imposed on Scottish and Southern Energy for misleading potential customers as a victory in a “real David versus Goliath battle”.

The fine came after the Court of Appeal in March upheld the company’s conviction in 2011 on two counts of engaging in a misleading commercial practice contrary to regulation 9 of the Consumer Protection from Unfair Trading Regulations 2008. SSE was acquitted on five other counts. 

The case centred on the company’s use of a sales script for doorstep selling between September 2008 and July 2009.

The prosecution brought by Surrey’s Trading Standards team was the first of its kind against one of the so-called ‘Big Six’ energy firms.

Steve Playle, Surrey County Council Trading Standards investigations and enforcement manager, said: “This was a real David versus Goliath battle which resulted in a victory for consumers everywhere. It should send a message to the energy industry that deceptive, misleading and illegal sales tactics are not acceptable.

“Hopefully this fine will serve as a reminder that no matter how competitive the market, companies cannot lose sight of the law. If they do, trading standards teams will be there to straighten them out.”

Playle suggested that the fine could the biggest ever in this country for a Trading Standards prosecution.

Ron Gainsford, chief executive of the Trading Standards Institute, said: "Surrey County Council Trading Standards have done a fantastic job in bringing one of the Big Six to justice, marking a real milestone in our longstanding fight against doorstep selling that was affecting particularly the more vulnerable in their own homes.

"This is a prime example of local trading standards successfully fighting a case of national interest, proving wrong those who have doubted the profession’s ability to take on responsibilities from central Government and the Office of Fair Trading in the new consumer landscape."

The TSI is campaigning for a ban on energy doorstep selling.

According to the BBC, Scottish and Southern Energy said it was sorry and would not appeal the level of the fine.