ASIC keeps focus on advertising
The Australian Securities and Investments Commission (ASIC) has continued to focus on the claims made by financial services providers in advertising, with Woolworths set to change its advertisements for car insurance after the regulator expressed concern they were potentially misleading.
The advertisements for Woolworths Car Insurance, which ran online in late 2012 and early 2013 - and as outdoor marketing and on buses - claimed that purchasers of the insurance saved an average of $240. The claim was based on a sample of 109 Woolworths’ customers who purchased a comprehensive car insurance policy from the company in August and September last year, and compared the premium with that of their previous policy.
ASIC stated the comparisons were not equal, with Woolworths’ customers potentially insuring their vehicles for a lower agreed value as a result of its insurance product having a lower agreed value range than that offered by some other insurers.
Despite the adverts carrying a disclaimer by Woolworths stating the cover and benefits might differ between the policies being compared, ASIC said this was not prominently displayed and was unlikely to correct any misleading impressions created by viewing the savings claim.
“When comparing products in an ad, the products should have sufficiently similar features to make the comparison relevant and not misleading. The more that a qualification is required to balance the information contained in the headline claim, the clearer and more prominently placed the qualification should be,” ASIC Deputy Chairman Peter Kell said.
The change by Woolworths is the second time this week that ASIC has required financial services providers to alter advertising. ASIC had requested that HSBC and Commonwealth Bank change adverts deemed as potentially misleading.
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