Consumers duped by price comparison websites, ASIC warns

The corporate watchdog has issued a warning against price comparison websites for allegedly misleading consumers.

ASIC has launched multiple court actions regarding the range of products offered and sites promoting multiple leads from a single brand.

The watchdog also warned consumers about service agreements, ensuring they don't sign away private data.

Australians hunting bargains on comparison websites risk being duped by sites that only offer a selection of preferred providers.

The corporate watchdog has issued a warning after launching multiple court actions against websites for allegedly misleading consumers about the range of financial services and products on offer and, in some cases, promoting multiple leads from a single brand.

While comparison websites are a good place to start for prices and services information, consumers should conduct deeper research, Australian Securities and Investments Commission (ASIC) commissioner Alan Kirkland said.

"The products that are listed by many comparison sites are selected and ordered based on what the product providers pay to the comparison sites, and they may not give you a full view of the market," Mr Kirkland said.

The Federal Court recently found comparison site Choosi — which offers life, funeral, income protection and health insurance products — misled consumers over four years from mid-2019 after claiming to compare a slew of funeral and life insurance policies, when Hannover Life Re issued all but one of the policies offered.

Every single policy in question was distributed by Greenstone Financial Services, a company linked with Choosi.

The court has not set a date to hand down Choosi's penalty, but an administrative hearing will be held later on Tuesday.

The watchdog launched a case on Friday against lead-generating business Clark Family Pty Ltd, which offers free online assessments for loans and insurance products.

The commission alleges up to 70 of its websites misled consumers by claiming to compare rates and options from multiple providers and providing consumers "tailored" recommendations.

"In reality, consumers' inquiries were (allegedly) sold to the highest-bidding broker," Mr Kirkland said.

With Australians already struggling with cost-of-living pressures and stubborn inflation, the court actions are a warning shot across the bow to the price comparison platform market.