Selectra Faces 400,000 Euro Fine for Deceptive Commercial Practices in Energy Price Comparison

In recent news, Selectra, a well-known online platform for comparing electricity and gas prices, has agreed to pay a fine of 400,000 euros instead of facing a criminal trial for suspected deceptive commercial practices. Over the course of a two-year investigation, between 2020 and 2022, consumer police found that Selectra had engaged in multiple fraudulent activities towards its customers.

One of the main issues discovered by investigators was the highlighting of prices from a specific energy supplier on Selectra’s French websites. These offers were presented with non-existent discounts, false statements suggesting high financial attractiveness, and ambiguous language concealing the fact that the supplier’s kWh price was actually higher than the regulated rate. Additionally, Selectra was accused of hiding its commercial intentions to insert links on public bodies’ websites that aimed to inform consumers.

In response to these allegations, Selectra stated in writing that they had rectified errors and implemented controls to prevent individual deviations in communication. The company also claimed to be developing technology such as artificial intelligence to automatically update energy prices. Originally founded in 2007 to specialize in comparing electricity and gas prices, Selectra has diversified its services to include comparisons in internet and telephone markets, insurance, and banking offers. In 2023, they achieved a turnover of 96 million euros worldwide.

If Selectra had not accepted the transactional fine, it could have faced a criminal trial with penalties of up to 10% of its annual turnover, potential prison sentences for managers, and fines. Consumer protection associations are warning that injured consumers may still take legal action against Selectra. This case marks the first time an energy price comparator has faced conviction, highlighting the close scrutiny of this sector by the DGCCRF and consumer associations.

Comparators in the energy market are seen as particularly risky due to competition and the financial motivations of suppliers to appear on comparison sites. However, consumer advocates like François Carlier of the CLCV association emphasize