Crackdown imminent on aggressive showerhead tactics

THE Victorian government is poised to clamp down on aggressive door-to-door salespeople offering free, and sometimes unwanted and unnecessary, showerhead replacements by May 1.

These salespeople, sometimes presenting themselves in an official capacity similar to a meter reader, have sparked a backlash due to their pushy approach and poor service.

Some in the community have drawn parallels between their actions and the controversial Home Insulation Program.

The Department of Energy, Environment and Climate Action (DEECA) has laid out three policy options to address these aggressive sales practices.

Option A targets “cold-call” telemarketing, proposing an immediate ban for all consumers and energy upgrades starting May 1, 2024, but allows doorknocking to continue under certain conditions.

Option B advocates for a more comprehensive ban, eliminating both telemarketing and doorknocking from the program as of May 1, 2024.

Option C suggests a phased approach to the bans, with telemarketing prohibited from May 1, 2024, and doorknocking cessation delayed until August 1, 2024, allowing for a transitional period for stakeholders to adapt.

Under the Victorian government’s Victorian Energy Upgrades (VEU) program, Victorians are eligible for up to two water-saving showerheads if their existing showerheads have a high flow rate or a low star rating.

The free showerheads have proved lucrative for those giving them away.

Under the existing policy, door-to-door agents earn Victorian Energy Efficiency Certificates (VEECs) for each tonne of greenhouse gas savings from these upgrades.

As of late December 2023, the market value for each VEEC was $90.50.

According to the VEEC website, installing two showerheads can result in earning three VEECs, translating to around $271.50.

To date, 810,397 homes and business have had showerheads replaced resulting in the issuing of 1,964,988 VEECs.

Several companies and individuals have made submissions to the consultation process.

In the Australian Communications and Media Authority (ACMA) submission, general manager of the content and consumer division Cathy Rainsford said the tougher laws couldn’t be implemented fast enough.

“Given the growing evidence indicating harm to consumers in relation to the VEU, the ACMA supports the propose ban on telemarketing coming into effect as soon as possible.”

In June 2023, the Minister for Energy and Resources Lily D’Ambrosio announced her intention to implement a ban high-risk forms of unsolicited marketing under the VEU program.

The present stage, the second round of consultation, opened on February 19, and will close on March 18.

Feedback will be reviewed and a response to the consultation released between March and April.

The implementation of the ban is set for May 1.