A door-to-door salesman spruiking AGL's electricity and gas services in Coburg in late 2011 has cost the company nearly $1.5 million in penalties for lying to consumers.
The $1.48 million penalty against AGL Sales and another $70,000 penalty against AGL South Australia follow legal action by the Australian Competition and Consumer Commission in the Federal Court in Melbourne. CPM Australia, was ordered to pay $200,000 for its role in marketing on behalf of the AGL companies.
AGL stopped using doorknocking its products in March, saying it was a "risky sales technique".
Although contractors were responsible for the contraventions, AGL was fined because it was the supplier on behalf of which negotiations were being conducted.
The court found that the salesman engaged by CPM to sell gas and electricity in Victoria made "false representations and engaged in misleading and deceptive conduct, during uninvited calls".
The doorknocker claimed he was not selling anything, and made false statements about prices.