ACCC to look at whether Compare the Market should have to change its name because it doesn’t compare the market
Compare the Market’s website jokes that Aleksandr the meerkat owns the business. In fact, the company and most of the insurance brands it flogs have the same owners. Should it have to change its name?
NSW
Don't miss out on the headlines from NSW. Followed categories will be added to My News.
The Australian Competition and Consumer Commission has revealed it is going to look at whether Compare the Market should have to change its name because so many of the insurance products it compares are sold by its parent company.
Today, ACCC chair Gina Cass-Gottlieb will deliver a speech in Sydney outlining the regulator’s enforcement priorities for 2024-25, including a crackdown on influencer marketing, online reviews and – in bad news for Aleksandr Orlov the Russian meerkat – comparison sites.
According to a draft of Ms Cass-Gottlieb’s speech, the move is part of an array of actions by the commission designed to “make a difference to cost of living challenges,” which includes a supermarket pricing inquiry and a push to promote competition in electricity, gas and financial services.
“We will … be looking closely at price comparison websites,” the speech says.
“These tools can be an important mechanism to inform consumers about price and suitability of products and services.
“However, we are concerned that these tools can also mislead consumers, and not convey the extent of sponsorship and commercial incentives received from suppliers who are featured in the tools.”
Compare the Market is part of the same business as six of the 10 car insurance brands it compares. The six brands are arranged for Auto & General Insurance Company Limited.
The Compare the Market website jokes that the meerkat Mr Orlov is the owner of the company. But in fact, the largest shareholder is a company called Reef Holdings Limited, which is based in the tax haven of Guernsey.
While the Auto & General website says “we’re part of a global network of businesses, connected through membership of the Reef Investment Consortium.
“Our businesses in Australia include the underwriting and distribution of insurance products … as well as the separate online comparison business Compare the Market.”
In a briefing with journalists ahead of the launch of the ACCC’s enforcement priorities, The Daily Telegraph asked Ms Cass-Gottlieb if Compare the Market should change its name.
She replied: “I think that is an important question for us to look at.”
Another well-known comparison website, iSelect, also has Reef Holdings as its biggest investor. Four out of nine car insurance brands it compares are part of the same group of companies as iSelect.
Compare the Market CEO Rob Clancy said it was about to add two new car insurer brands.
“We really pride ourselves on the integrity of our comparison service and always take a fair and consistent approach to presenting policies,” Mr Clancy said.
“All brands compete on a level playing field. We never play favourites with the brands we compare or promote sponsored listings.”
The ACCC’s enforcement priorities also include scrutiny of potentially misleading or deceptive advertising inside video games primarily played by children.
“Far too often we hear concerns about consumers incurring huge purchases because of in-app offerings that have inadequate safeguards, or in some cases, deliberately target and nudge or confuse consumers,” Mr Cass-Gottlieb will say in her speech to the Committee for Economic Development of Australia.
The biggest bill a parent has reported their child ran up was $12,000.
Meta the worst for fake ads: ACCC boss
Facebook and Instagram’s parent company Meta is the worst at removing online scams such as those that have targeted billionaire Andrew Forrest and TV star Larry Emdur, the nation’s top consumer cop says, as she seeks the power to penalise digital platforms that don’t take down fake ads fast.
At a briefing with the media, Australian Competition and Competition Commission chair Ms Cass-Gottlieb was questioned about which digital platform had performed most poorly in tackling scams. She answered: “Meta.”
She noted that the ACCC had commenced related, ongoing Federal Court action against Meta in March 2022 but two years on “we do not see rapid take-down of celebrity fake ads on the Meta properties.”
“It’s why we think we need a mandatory code” that is enforceable and backed by penalties, Ms Cass-Gottlieb said. Such a code would be enshrined in law and cover not just digital platforms but banks and telecommunications companies.
Federal Treasury recently ran consultation on a mandatory code, with Meta submitting that the industry should draft the rules instead. Consumer groups want mandatory codes.
It is yet to be determined how long digital platforms would have to take down scams after being notified.
For systemic, repeated misconduct, the penalties would be “in the millions of dollars,” Ms Cass-Gottlieb said.
A Meta spokeswoman said “scammers present a challenge in many environments, including social media, and they are constantly finding new ways to deceive people.
In the final quarter of 2023, we removed 691 million fake accounts globally, she said.
“We continue to work with the National Anti-Scam Centre and across industries to identify new ways to stop scammers. We also encourage people to use our in-app reporting tools when they see any suspicious activity.”
Do you have a story for The Daily Telegraph? Email tips@dailytelegraph.com.au
‘Density done well’: Fate of $120m super development imminent
Developers of a sprawling $120m development on the South Coast could soon break ground, with locals urged to have their say before submissions close.
Sibling revival: Restoration on the ‘Three Sisters’ begins
Almost 150 vacant public housing units in northwest Sydney will be refurbished after a $2bn project to demolish the buildings and replace them with almost 5000 dwellings was dumped.