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Monday 28 October 2013

13-291MR ASIC concerns result in changes to online advertising by Insure 247

Insure 247 Pty Ltd (Insure 247) has made changes to its online insurance websites following ASIC concerns they contained misleading or deceptive advertising.

ASIC was concerned the websites, www.quotesonline.com.au, www.insure247.com.au, www.greatchoice.com.au and www.ezisure.com.au, gave the impression consumers were accessing an online tool which compared the features and the cost of different insurance products (eg ‘Greatchoice and our partners compare thousands of Insurances from fifty different insurers’). ASIC’s review found there was no evaluation or comparison of the products.

Further, ASIC found Insure 247 displayed the logos of insurance providers that were not offering quotes for the product featured on that page of the website. For some insurance products, only one insurance provider received consumer details through the website when consumers were likely to think their details would be passed on to many insurers.

Deputy Chairman Peter Kell said, ‘Operators of websites must take care to ensure they accurately portray the features and limitations of the services they advertise’.

In response to ASIC's concerns, Insure 247 changed the content of its websites to now prominently state, on the home pages and every product page, that it is not a market comparison service. Insure 247 has also corrected the use of logos and made it clear to consumers that when seeking an insurance quote, only one quote may be provided for some products.

Background

ASIC has previously warned operators of insurance and credit comparison websites of the need to ensure they comply with their obligations under consumer protection laws (refer 12-304MR)

One of the insurance providers advertised on the websites is The Hollard Insurance Company Pty Ltd (trading as Real Insurance), which is a related company of Insure 247. The websites now disclose this relationship.

Last updated: 28/10/2013 12:00