30 June 2021 The Federal Court has declared by consent that Sumo Power Pty Ltd (Sumo) made false or misleading representations in selling electricity plans to Victorian consumers and ordered it to pay $1.2 million in penalties, and to pay consumer redress to affected consumers. Sumo admitted that between June and December 2018, it had misled consumers about how much they would pay for their electricity if they switched to Sumo, in breach of the Australian Consumer Law. The Court declared by consent that Sumo had offered cheap rates and high ‘pay on time’ discounts to entice consumers to sign up to certain electricity plans, when in fact Sumo planned to, and did, materially increase the rates paid by customers who had received one to three monthly bills. In addition, when signing up consumers, Sumo represented that it would maintain the low rates, or not substantially increase them, for 12 months when in fact Sumo increased rates by between 28 and 43 per cent for certain consume...