The encyclopedia · Advertising & PR · Marketing decision · 2026
Three Swedish power sellers advertised discounts — not the price jump after year one
The ads sold discounts and said they'd end after a year — not that prices would jump. Sweden's Patent and Market Court banned the marketing; SEK 2M vite each.
Elify Energy Group · 2026-04-27
What happened
Cheap Energy, Stockholms Elbolag and Svealands Elbolag — three companies in Sweden's Elify Energy Group — marketed electricity contracts with discounts and favourable prices. The marketing said the discount would expire after twelve months. What it did not clearly say was what came next: after the first year the electricity price would increase significantly. Customers who believed they had locked in a cheap deal were hit with shock invoices.
The Consumer Ombudsman took the companies to court, and on 27 April 2026 the Patent and Market Court ruled they had misled consumers about price in breach of the Marketing Act. The court prohibited marketing that misleads consumers regarding price, backed by a conditional fine of SEK 2 million per company.
For the group it was not a first: Stockholms Elbolag had been convicted by the same court in 2022 for calling consumers while pretending to be their existing electricity supplier. Deputy Consumer Ombudsman Kristofer Johannesson welcomed the clear ruling, saying correct and clear price information is what consumers rely on when choosing an electricity company.
Why it happened
- A half-told price misleads: telling customers the discount expires without telling them the price that follows hides the true cost of the contract.
- Shock invoices are a marketing failure: the deal was sold as a bargain and arrived as a complaint — the gap between promise and bill was created by the ads.
- The repeat pattern shaped the response: a 2022 conviction for fake-supplier calls showed the history, and this time the court attached a SEK 2 million conditional fine to each company.
The lesson
If a price comes in two halves, the ad must show both: selling a discount while hiding the jump that follows it misleads — and courts can attach a fine to every repeat.
Aftermath
The judgment of 27 April 2026 imposed the prohibition with SEK 2 million conditional fines per company. Stockholms Elbolag had earlier been convicted in 2022 for pretending to call from consumers' existing suppliers.
Sources
- Konsumentverket: three electricity companies convicted of misleading marketing (27 April 2026)
- Resumé: three electricity companies convicted of misleading marketing (27 April 2026)
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