The Australian Competition and Consumer Commission (ACCC) has instituted proceedings in the Federal Court in Sydney against Global Green Plan for breaching the Trade Practices Act.
From 2006 to 2008 Global Green Plan operated GreenSwitch, a retailer of GreenPower under the government's national GreenPower accreditation program.
The company accepted payments from customers on the proviso that the money would be used to purchase renewable energy certificates. However, not all of the certificates were purchased as had been promised, according to the ACCC.
In December 2009, Global Green Plan acknowledged its conduct was likely to have breached the Trade Practices Act 1974 and provided court-enforceable undertakings to the ACCC under section 87B of the Act.
As part of the undertakings accepted by the ACCC, Global Green Plan was required to purchase about 4000 renewable energy certificates by March 24, three months after the undertaking came into effect.
The undertakings also required Global Green Plan to write a letter to GreenSwitch customers explaining the situation.
The ACCC alleges that Global Green Plan had not purchased the certificates or sent the letter to GreenSwitch customers by the set date and had not done so at the time of instituting proceedings in the Federal Court in Sydney.