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ASIC has launched Federal Court action against a business it alleges ran up to 70 websites falsely claiming to compare loans and insurance products, when it was actually selling consumer enquiries to the highest-bidding broker.
What Happened
ASIC is suing Clark Family Pty Ltd, alleging that between September 2020 and September 2026 the business operated up to 70 websites offering free online “comparisons” and “tailored recommendations” for loans and insurance. ASIC alleges these claims were false and misleading, because the business did not actually compare financial products or provide tailored advice. Instead, it allegedly ran an internal bidding process, with the highest-bidding broker receiving the consumer’s enquiry and contacting them directly. ASIC is seeking declarations, pecuniary penalties, an adverse publicity order and injunctive relief.
Why It Matters
This action follows a separate case in which the Federal Court found comparison service Choosi misled consumers by claiming to compare insurance from a range of insurers when the products were overwhelmingly sourced from a single insurer. Together, these cases confirm a genuine pattern: not every site presenting itself as a “comparison” service is actually comparing the market, and some exist primarily to sell consumer enquiries to the highest bidder.
Who Is Affected
Any Australian household that has used, or is considering using, a comparison website to shop for loans, insurance or similar financial products.
What to Do / What to Watch
Before relying on a comparison website, check what it actually discloses about how many providers it compares and how it is paid. Use more than one comparison site to get a fuller view of the market, and do independent research beyond what any single site shows you. Read the site’s terms before entering your details, since some sell your enquiry on to third parties rather than genuinely comparing products for you. ASIC’s Moneysmart website has further guidance on using comparison sites safely.
Official Source / Verification
This article is based on ASIC media release 26-221MR, ASIC sues lead generation business over alleged misleading comparison claims.
This article is general information only and does not constitute financial advice. Allegations in ongoing court proceedings are not yet proven.
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