A company involved in poor water heater sales tactics has agreed to pay $7-million in penalties. National Energy Corporation, which operates as National Home Service, agreed to penalties over its door-to-door water heater marketing practices in Quebec and Ontario, including here in Parry Sound. The federal Competition Bureau were found that sales staff were misleading customers about their identity and the purpose of their visits while trying to sell their products. During the investigation, the bureau said it became aware of thousands of complaints received by other organizations, including the Ontario Ministry of Consumer Services and the Better Business Bureau.
National will pay $1.5 million in restitution to all current National customers obtained through door-to-door marketing since July 2008 in the form of a credit on their water heater rental bills as well as a $5 million administrative penalty and an additional $500,000 towards the bureau’s investigative costs. The agreement also prohibits National from misleading consumers into believing their existing water heater is unsafe or that it is eligible for a no-cost upgrade and requires the implementation of a corporate compliance program.