Amaysim shares beaten up after consumer watchdog launches court proceedings
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Shares in junior telco Amaysim fell hard after the mobile phone and broadband player confirmed in an ASX announcement that the consumer watchdog has started proceedings against it in the Federal Court.
At Tuesday’s close, the shares were down 10.3 per cent to 91.5c. They have traded between 70c and $2.25 in the past year.
Amaysim told investors in a Tuesday ASX announcement that the ACCC alleged its Amaysim Energy subsidiary — trading as Click Energy — made statements about discounts and savings that the watchdog believed had contravened false or misleading conduct provisions.
“The company rejects the claims being made by the ACCC and believes it has acted lawfully, ethically and in accordance with industry practice,” Amaysim said.
Click Energy, between October 2017 and March this year, allegedly represented to consumers in Victoria and Queensland that they could get discounts of between 7% and 29% if they paid their bills on time.
Here are the advertisements by Click Energy, according to the ACCC:
The mobile sim card company last year launched itself as a energy utility with no lock-in contracts and discounts which don’t expire, buying Click Energy, an online pure-play energy seller, for $120 million.
Amaysim said it took its obligations under Australian Consumer Law seriously and had appropriate processes in place to ensure compliance.
“The ACCC’s allegations relate to legacy Click Energy products which are no longer offered to the public.”
Click Energy has since reviewed and improved its statements regarding discounts and savings and amended its product descriptions.
Amaysim is forecasting net revenue in the full 2018 year of between $573 million and $583 million.