A door-to-door salesman spruiking AGL's electricity and gas services in the Melbourne suburb of Coburg in late 2011 has cost the energy giant nearly $1.5 million in penalties for lying to consumers. The $1.48 million penalty against AGL Sales and another penalty for $70,000 against AGL South Australia follow legal action by the Australian Competition and Consumer Commission in the Federal Court in Melbourne. AGL said today it had stopped using doorknockers in March to sell its products because it was a "risky sales technique." Although contractors were responsible for the contraventions, AGL was fined because it was the supplier on behalf of which negotiations were being conducted. The court found that the salesman engaged by CPM to sell gas and electricity door-to-door in Victoria "made false representations and engaged in misleading and deceptive conduct during uninvited calls on consumers," the ACCC said. The representative claimed he was from an "Investigations Department" and that Mr G had been overcharged for electricity and could reclaim the money. "In order to avoid being overcharged for the supply of retail electricity and/or retail gas, it was necessary for Mr G to obtain retail electricity and/or retail gas from the distributor of those products [and] if AGL was Mr G's retail electricity supplier his retail electricity bill would be between $100 and $120 per quarter," Justice Middleton wrote. AGL Sales was fined $1.48 million for breaching two sections of the Australian Consumer Law, while AGL SA was fined $70,000. The two sections breached relate to misleading and deceptive conduct, and dealers clearly identifying themselves and advising consumers they have a right to ask the dealer to leave immediately. Both companies must print notices in local newspapers and send all customers a list of a their rights when approached by door-to-door sales people. AGL's general manager of retail energy, Stephen Mikkelsen, expressed regret the breach had occurred and called on the rest of the energy industry to stop door knocking. Doorknocking also preys on susceptible segments of the community, such as the elderly and migrants. Those companies still undertaking the practise are doing harm to the energy sector's reputation. EnergyAustralia, formerly TruEnergy, stopped door knocking on February 25 this year. In March, the ACCC launched legal action against EnergyAustralia in the Federal Court for misleading and deceptive conduct in 2011 and 2012. A trial is due to start in the second half of this year. The conduct related to behaviour by employees of third parties. "Customers have given us clear feedback that door knocking is not their preferred way of dealing with energy retailers," the group executive manager of retail at EnergyAustralia, Adrian Merrick, said at the time. Reasons for this have ranged from inconvenient timing, through to individual cases of poor customer experience. Meanwhile, the only major energy retailer still using door-to-door sales people is Origin Energy. A spokesman said it was "currently undertaking a review of the residential door to door sales channel, the results of which will inform the company's future involvement in the [sales] channel."