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ISCOVER
Staff Reporter
ASIC has warned operators of insurance and credit comparison websites that they need to meet their obligations under consumer protection laws or face significant repercussions.
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According to a new statement, ASIC is looking to crack down on comparison websites in light of their growing popularity among consumers.
ASIC has already identified a number of concerns with some comparison websites, including that some of the websites only compare a limited number of brands/products from a limited number of providers. This may not be clearly disclosed, creating the impression that the extent of comparison is much broader than it actually is.
In addition, ASIC has found that in some instances, comparison websites use ‘ratings’ and ‘rankings’ for products without a clear explanation of the basis for those ratings and rankings.
Finally, some websites refer to ‘special offers’ and ‘featured products’ without properly explaining the basis of their selection.
ASIC also reminded operators that websites that allow consumers to obtain and/or compare insurance quotes will generally be providing financial services. If so, these operators need to be licensed or be an authorised representative of a licensee.
“ASIC recognises that consumers can benefit from the increasing opportunities to research and compare financial products online,” ASIC commissioner Peter Kell said.
“For this to occur, operators of comparison websites must take care to ensure they accurately portray the features and limitations of the products compared. They also need to ensure that any information they provide, including quotes, is reliable, accurate and up-to-date.
“We will be targeting this area of the market and we will take regulatory action where necessary to ensure that operators of financial product comparison websites comply with the law.”
