ANZ backs down on ad conditions after ASIC probe
ANZ has agreed to send out gift cards to income protection insurance customers after the banking regulator deemed the fine print on ANZ’s advertising potentially misleading.
The Australian Securities and Investments Commission (ASIC) raised concerns about newspaper ads that ran late last year offering ANZ Visa gift cards for customers who purchased the insurance.
However, the fine print stipulated they would only receive the gift card if they maintained their coverage for a year and paid all premiums on time.
ASIC said the conditions were not prominent enough to catch the consumer’s eye.
“What looked to be a simple offer turned out to have unexpected conditions attached,” ASIC Deputy Chairman Peter Kell said.
“Advertising of financial products should allow consumers to clearly understand what they are entitled to receive.”
ANZ has now agreed to send the gift cards to all 742 customers who applied for the insurance, including 170 who did not meet the conditions.
ASIC has a history of targetting “misleading” advertising, with GE Money, RAMS, HSBC and the Commonwealth Bank all changing advertising following concerns from the regulator.
AUTHOR
Kate Cowling
Recommended for you
Over half of wealth management clients in Asia-Pacific say they are looking for more advice in investment and financial planning services, according to EY, and may switch or add new providers to achieve this.
As artificial intelligence continues to reshape how the advice industry operates, Adviser Ratings unpacks which areas advisers are using the technology to improve the client experience.
Insignia Financial has appointed the former APAC head of a global asset manager to its board.
Financial advisers have been warned against advising clients to withdraw superannuation for medical or dental treatments as a new report highlights the long-term effect on balances at retirement.
