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The encyclopedia · Advertising & PR · Marketing decision · 2024

Hokkaido Electric's '5% cheaper' bundle needed a monthly login to be worth it

Leaflets promised ~¥6,000–¥20,000 a year for switching gas to the bundle. The savings included points that needed monthly logins and weekly reading.

Hokkaido Electric Power · 2024-12-03

What happened

Hokkaido Electric Power wanted households to switch their city gas from Hokkaido Gas and bundle it with electricity. In December 2020 and again from June to December 2021, leaflets slipped in with meter-reading slips ('Anata no Denki'), newspaper inserts and direct mail promised specific annual savings for making the switch: 'approx. ¥6,000 savings', 'approx. ¥20,000 savings', '5% cheaper'.

The numbers were padded with points. The advertised savings included the value of the Ene-Toku point plan — points that were only granted to customers who joined the point service, logged in every month and read a weekly column. Simply signing the bundle contract, as the ads implied, did not deliver the advertised benefit.

On 3 December 2024 the Consumer Affairs Agency issued a surcharge order: ¥33,980,000, calculated on ¥1,132,930,036 of supply transactions reached by the displays, payable by 4 July 2025. The ruling treats loyalty points as part of the price claim — if the saving needs effort to collect, the ad must say so.

Why it happened

  • Ads promised fixed annual savings of ~¥6,000–¥20,000 or '5% cheaper' for bundling electricity and gas.
  • The savings figures included loyalty-point value that required joining a service, logging in monthly and reading weekly columns.
  • The Consumer Affairs Agency counted the points as part of the price claim: undisclosed conditions made the saving misleading.
What it cost¥33.98M surchargecostly

The lesson

A saving that needs homework must be advertised as one: Hokkaido Electric's bundle discounts rested on points earned by monthly logins, and Japan charged ¥33.98M.

Aftermath

The surcharge order of 3 December 2024 required payment of ¥33,980,000 by 4 July 2025. Hokkaido Electric Power acknowledged receipt of the order in a public notice the same day.

Sources

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