Selectra price comparator hit with record fine for energy misconduct

The charges against Selectra, the leader in online comparison of electricity and gas prices, were deemed too serious to risk facing a trial. As a result, the company agreed to pay a fine of 400,000 euros to avoid criminal proceedings. The French company was under suspicion of engaging in deceptive commercial practices, which were uncovered following a two-year investigation by the General Directorate for Competition, Consumer Affairs and Fraud Control (DGCCRF).

During the investigation from 2020 to 2022, it was discovered that Selectra had engaged in various deceptive practices towards consumers. This included highlighting prices of a specific energy supplier on their websites with false discounts and statements suggesting financial attractiveness that did not exist. The company also attempted to conceal the fact that the energy supplier’s prices were actually higher than the regulated rate.

The DGCCRF found that Selectra had also hidden its commercial intentions to obtain the insertion of commercial links on public websites aimed at informing consumers. These actions were seen as maintaining confusion between Selectra and other energy suppliers, network managers, and the national energy mediator. As a company built on the veracity and reliability of its content, these practices were particularly damaging.

In response to the allegations, Selectra stated that corrective measures had been implemented, including controls on communications managers’ emails to prevent individual deviations. They also updated their content monetization rules and implemented internal controls to ensure compliance. The company is also working on technology, such as artificial intelligence, to automatically update energy prices.

Although Selectra avoided a criminal trial by agreeing to the fine, consumer advocates warned that injured consumers could still take action against the company. This case marked the first time an energy price comparator had been convicted, highlighting the need for transparency in the industry. Comparators must provide fair information to consumers, as misleading practices can have harmful effects.

The energy comparison market is closely monitored by regulatory authorities and consumer associations, as it is considered a sector prone to deceptive practices. Suppliers often pay commissions to comparison sites, leading to potential conflicts of interest. The importance of fair and accurate information on comparison sites is emphasized, as consumers must be cautious when using these platforms.