Regulatory Alerts2025-09-23
ASIC takes court action alleging RACQ sent half a million misleading insurance renewal comparisons
The Australian Securities and Investments Commission has commenced Federal Court proceedings against RACQ Insurance Limited, alleging the insurer sent over 570,000 renewal documents containing false or misleading 'last period premium' comparisons between September 2019 and December 2024. ASIC Deputy Chair Sarah Court states that RACQ ignored customer complaints regarding these distorted pricing representations for more than five years, thereby depriving consumers of accurate information needed to compare insurance costs during a cost-of-living crisis. The regulator is seeking declarations, civil penalties, and publicity orders for contraventions of section 12DB of the ASIC Act, marking a significant enforcement action within its 2025 priorities to ensure insurers deal fairly with customers.