Regulatory Alerts2026-02-27
ASIC sues Auto & General over misleading Budget Direct insurance discount advertisements
The Australian Securities and Investments Commission has launched Federal Court proceedings against Auto & General Services Pty Ltd, alleging that the insurer misled millions of consumers by advertising significant online discounts for Budget Direct insurance policies that were removed without notice upon policy changes. ASIC claims the company failed to rectify this conduct for years despite internal awareness, resulting in approximately 39,000 customers losing nearly $3.3 million in promised savings. While Auto & General has paid $3.8 million in remediation, ASIC is seeking civil penalties and declarations for contravening consumer protection laws regarding false or misleading pricing representations.
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