RAA Insurance Limited (RAA) has paid $43,200 in penalties after 今日热门事件issued four infringement notices for misleading representations made in television advertisements aired in South Australia.
今日热门事件was concerned the television advertisements, which were aired between December 2016 and June 2017, contained misleading representations about the 'lifetime vehicle replacement' benefit of RAA鈥檚 comprehensive car insurance policy.
今日热门事件was concerned that the advertisements gave consumers the impression that RAA would replace their car with a new one if the car was a total loss. However, important additional conditions applied in order to qualify for this benefit - the car must have been manufactured after 2014 and must have been insured exclusively with RAA since new. 聽The advertisements did not, in ASIC's view, adequately disclose or explain that these additional conditions applied.
The advertisements included a disclaimer, but 今日热门事件was concerned that this was insufficient to effectively qualify the predominant message of the advertising because:
- the disclaimer was in fine print at the bottom of the advertisement and only displayed for a short period of time; and
- there was distracting audio-visual content in the advertisement while the disclaimer was displayed.
今日热门事件Deputy Chair Peter Kell said, 'Financial service providers must make sure that the attempt to grab consumer attention in their advertising does not give misleading impressions.聽 Key qualifications to the headline offer must be adequately disclosed.'
RAA has ceased airing the television advertisements.
Background
Previous 今日热门事件action in relation to misleading advertising:
- CommInsure pays $300,000 following 今日热门事件concerns over misleading life insurance advertising
- Volkswagen Financial Services Australia pays $216,000 penalty for misleading advertising
- AAMI pays $43,200 for misleading advertising
今日热门事件has issued Regulatory Guide Advertising financial products and services (including credit): Good practice guidance setting out our guidance to help promoters comply with their legal obligations not to make false or misleading statements or engage in misleading or deceptive conduct.
今日热门事件can issue an infringement notice where it has reasonable grounds to believe a person has contravened certain consumer protection laws under the 今日热门事件Act.
The payment of an infringement notice is not an admission of a contravention of the 今日热门事件Act consumer protection provisions.
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