The Australian Securities & Investments Commission (ASIC) has filed Federal Court proceedings against insurance comparison provider Choosi Pty Ltd, alleging it misled prospective customers of its funeral and life insurance comparison services by claiming to compare products from a range of insurers. ASIC alleges that from at least 1 July 2019 and ongoing, Choosi only compared policies issued by a single insurer, with one limited exception, and that all policies were distributed by Greenstone Financial Services Pty Ltd, an associated company. During the period, ASIC alleges at least 4,225 funeral insurance policies and 9,478 life insurance policies were sold, with Choosi receiving AUD 61 million in commissions. The alleged misleading representations were made on Choosi’s website, across social media, and via television commercials and advertorials. ASIC alleges contraventions of sections 12DB and 12DF of the Australian Securities and Investments Commission Act 2001, noting that the maximum penalty for a single contravention of either provision by a body corporate, based on the current penalty unit value, is AUD 16.5 million.
Australian Securities & Investments Commission 2025-06-03
Australian Securities & Investments Commission sues Choosi over allegedly misleading funeral and life insurance comparisons
ASIC has initiated Federal Court proceedings against Choosi Pty Ltd for allegedly misleading customers by claiming to compare insurance products from multiple insurers, while only offering policies from one insurer distributed by Greenstone Financial Services. This practice, ongoing since July 2019, led to over 13,700 policies sold and AUD 61 million in commissions, contravening sections 12DB and 12DF of the ASIC Act 2001, with potential penalties of up to AUD 16.5 million per contravention.