Asic launches proceedings against operator of finance comparison sites
Clark Family, the company behind dozens of financial assessment and comparison websites, is heading to court, prosecuted by the Australian Securities and Investments Commission (Asic) for misleading consumers.
According to Asic, the company operated up to 70 websites offering consumers free online assessments for loans and insurance products between September 2020 and September 2026.
The websites claimed consumers could compare rates, quotes and options from multiple insurance providers and lenders, and receive tailored recommendations suited to their needs and circumstances.
ASIC alleges such claims were false, as the company did not compare financial products but instead sold enquiries through an internal bidding process, with the highest bidding broker receiving the lead and contacting the consumer directly.
The commission said the practice contravenes the Australian Securities and Investments Commission Act 2001.
“Where businesses represent that they compare products or identify options that suit a consumer’s needs, those claims must accurately reflect the service being provided,” said Asic’s chair Sarah Court.
The regulator is seeking declarations, pecuniary penalties, an adverse publicity order and injunctive relief.
- Further reading: Harvey Norman and Lattitude fined $55 million after Asic probe.
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