Australians using comparison websites have been urged to check whether the service covers the whole market or gives priority to providers that pay for referrals.
The Australian Securities and Investments Commission says consumers should understand how results are ranked, use more than one service where practical, and read privacy and service terms before providing personal details.
ASIC has also started Federal Court proceedings against Clark Family Pty Ltd. The regulator alleges that websites operated by the business made misleading comparison and tailored-recommendation claims while consumer leads were sold to brokers. The allegations have not been proven, and the court will determine the matter.
Comparison services can still be useful as a starting point, but a prominent ranking does not necessarily mean a product is the cheapest or best available. Users should confirm fees, exclusions and eligibility directly with a provider.
Sources: ASIC media release; ABC News.
Image disclosure: The featured image is an AI-generated conceptual editorial illustration and does not depict a real comparison service, provider or court exhibit.
