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Misleading The Customer - Online search engines taken to task |
A company that recommends health insurance policies via an online search engine on its website and a call centre has been taken to task for engaging in misleading conduct in contravention of the Trade Practices Act. |
The company can arrange for consumers to purchase a policy which it recommends, and it receives a commission from insurance companies on the sale. |
Australia's consumer watchdog, the ACCC, was concerned that the company misrepresented the range of insurance policies it compared when recommending a policy to consumers. In particular, it was concerned that the company misrepresented that it compared all the health insurance covers available for consumers and could find the best-suited policy for a consumer's needs at the lowest price. |
Following ACCC action, the company has now made court enforceable under takings that for a period of three years it will not make such representations in specified circumstances where they may be misleading. It will also inform certain customers for whom it arranges the purchase of a health insurance policy of the range of policies it compared for them. It will also maintain a trade practices compliance program. |
The ACCC has also instituted legal proceedings against Google and Trading Post for alleged misleading and deceptive conduct in relation to sponsored links on the Google website. |
The case revolves around 'dynamic keyword insertion', a Google tool that automatically inserts an advertiser's chosen keywords into its ads. It has international implications for search engines as well as for all businesses, large and small, who make use of them to reach customers. |
