The Australian Securities and Investments Commission (ASIC) has commenced proceedings in the Federal Court against 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 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.
These websites, the regulator alleges, were represented such that consumers could compare rates, quotes and options from multiple insurance providers and lenders, as well as 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.
“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 Chair Sarah Court.
As a result, ASIC alleges Clark Family contravened sections 12DB and 12DF of the Australian Securities and Investments Commission Act 2001.
The regulator is seeking declarations, pecuniary penalties, an adverse publicity order and injunctive relief.