ASIC has commenced proceedings in the Federal Court against Clark Family Pty Ltd (Clark Family), alleging it misled consumers on its websites by claiming it compared rates and options from multiple providers and tailored recommendations to consumers' needs, when in fact consumers' enquiries were sold to the highest bidding broker.
ASIC alleges that, between September 2020 and September 2026, Clark Family operated up to 70 websites offering consumers free online assessments for loans and insurance products.
ASIC alleges the websites represented that consumers could compare rates, quotes and options from multiple insurance providers and lenders, and receive tailored recommendations suited to their needs and circumstances.
ASIC contends those representations were false and misleading because Clark Family did not compare financial products or provide tailored recommendations. Instead, it sold consumer enquiries through an internal bidding process, with the highest bidding broker receiving the lead and contacting the consumer directly.
ASIC’s Chair Sarah Court said, ‘We allege Clark Family promoted its websites as providing comparisons and tailored options when, in reality consumer enquiries were simply sold to the highest bidder.
‘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.’
ASIC alleges Clark Family contravened sections 12DB and 12DF of the Australian Securities and Investments Commission Act 2001.
ASIC is seeking declarations, pecuniary penalties, an adverse publicity order and injunctive relief.
ASIC’s Moneysmart website has guidance for consumers for how to use comparison websites for insurance and other financial services.