Health Insurance Comparison Choosewell Pty Ltd

The Australian Competition and Consumer Commission (ACCC) has accepted a court enforceable undertaking from Health Insurance Comparison Choosewell Pty Ltd (HICC) for the purposes of section 87B of the Competition and Consumer Act 2010.

HICC, a subsidiary of Compare Club Australia Pty Ltd, operates an online comparison service for consumers via its website www.compareclub.com.au. HICC’s service compares certain health insurance services. Specifically, the services provided by HICC’s partnered health insurance products.

HICC engages third party lead generators who initiate contact with consumers on behalf of HICC and then either transfer customers directly on the phone to HICC or provide HICC with the consumer’s contact details.

Referrals from lead generators are typically the result of unsolicited telephone calls to consumers where the consumer has not invited the lead generator, or HICC, to contact them.

From at least October 2014 until December 2021 HICC, acting as a dealer, entered into negotiations with consumers via unsolicited telephone calls with a view to making agreements for the supply of health insurance services.

Before making the agreements, HICC did not inform consumers about:

• their statutory right to terminate the agreement during the relevant termination period in the ACL;
• the way in which they could exercise their right to terminate the agreement; and
• that for a period of 10 business days after the agreement is made, the private health insurance supplier must not require payment, accept payment or supply health insurance services.

HICC did not provide consumers with this information over the telephone and this information was not subsequently provided in writing.

In response to the ACCC’s concerns, HICC admits that for the above stated period, its conduct contravened section 76 of the ACL, including that:

• it entered into unsolicited consumer agreements with consumers via telephone;
• before entering into such agreements, it failed to inform consumers over the telephone of their right to terminate the agreement during the termination period, the manner in which consumers could exercise their right to terminate the agreement, and the fact that, for a period of 10 business days after the agreement is made the relevant health insurance provider must not require or accept payment or supply the services; and
• after entering into an agreement, it failed to inform consumers of the above information in writing in a manner that complies with the Competition and Consumer Regulations 2010 (the Regulations).

To resolve the ACCC’s concerns, HICC provided the ACCC with a section 87B undertaking that it will:

• not make an unsolicited consumer agreement with a person unless, before the agreement is made, the person is given information as to:
  • the persons right to terminate the agreement during the termination period;
  • the way in which the person may exercise that right; and
  • all such other matters as prescribed by the Regulations including that for a period off 10 business days after the agreement is made, the health insurance provider must not require payment, accept payment or supply health insurance services;

• provide the above information in writing following the telephone call in a way which complies with the ACL and the Regulations;
• develop a process to notify the relevant health insurance provider when an agreement is an unsolicited consumer agreement; and
• undertake to implement a Competition and Consumer Compliance Program and maintain this for a period of three years from the date of the Undertaking.

HICC also agreed to pay an Infringement Notice, with a penalty of $13,320, issued by the ACCC under section 134A of the Competition and Consumer Act 2010 (CCA) for the alleged contravention of section 76(c) of the ACL. On 26 August 2022, HICC paid this penalty.