Australia’s corporate watchdog has launched legal action against insurance comparison provider Choosi, alleging the company misled thousands of consumers seeking funeral and life insurance options.
The Australian Securities and Investments Commission (ASIC) filed proceedings in the Federal Court, accusing Choosi of making false or misleading claims about its insurance comparison services, in breach of sections 12DB and 12DF of the Australian Securities and Investments Commission Act 2001.
According to ASIC, since at least July 1, 2019, Choosi marketed itself as offering comparisons across a range of funeral and life insurance providers. In reality, the regulator claims Choosi only compared policies from a single insurer, with limited exceptions. All policies were distributed by Greenstone Financial Services, a company closely linked to Choosi.
During the period in question, ASIC alleges that Choosi facilitated the sale of at least 4,225 funeral insurance policies and 9,478 life insurance policies—generating approximately A$61 million (US$39.4 million) in commissions.
“We allege Choosi misled thousands of consumers into thinking they were comparing options from a broad selection of insurers,” said ASIC Deputy Chair Sarah Court. “In truth, they were denied genuine choice and may have purchased more expensive or less suitable policies than were available elsewhere.”
Court emphasized that comparison services must provide meaningful insights, not merely function as marketing tools for affiliated companies. “Comparison websites must not be disguised sales channels. Misleading conduct in this space undermines consumer trust and transparency,” she added.
ASIC also pointed to multiple channels where it believes misleading claims were made, including Choosi’s website, social media, television advertisements, and advertorials.
While platforms offering life insurance quotes and insurance guides can help consumers make informed decisions, ASIC advises Australians to use these tools as part of a broader research strategy when evaluating financial products.
The case serves as a warning to the broader industry about maintaining transparency, especially for businesses offering trustworthy insurance comparisons.
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