The Federal Court ruled Choosi “falsely conveyed” to consumers that it compared life and funeral insurance policies from “a broader range of insurers than it in fact did” in a decision handed down last week. 

“Through the Choosi website, and each of the impugned advertising materials … Choosi conveyed that its comparison service had a quality (in the sense of an attribute, virtue or property) which it did not possess,” the ruling said. 

The Australian Securities and Investments Commission launched legal action last year against the comparator, alleging it misled prospective customers through its funeral and life insurance comparison services. 

ASIC said Choosi only compared funeral insurance policies issued by a single insurer, Hannover Life Re of Australasia, from July 2019. 

For life insurance, it only compared policies issued by Hannover and a single policy issued by Swiss Re Life & Health Australia between July 2019 and June 30 2023. 

From July 1 2023, it only compared life insurance products issued by Hannover. 

ASIC chair Sarah Court says the outcome “sends a strong message that businesses must be transparent about the products they compare and the choices they offer consumers.” 

Choosi says it has “reviewed [its] website and advertising and made changes to ensure … communications are clear and accurate” after ASIC raised its concerns. 

“Once we have fully considered the judgment, if further changes are required to our communications, we will make them,” Choosi said in a statement to insuranceNEWS.com.au. 

“We respect the court's findings, and we accept that our communications did not clearly reflect the nature of the service we were providing. We are sorry for any confusion this caused our customers. 

“We are committed to engaging constructively with ASIC and the court on any further required steps.” 

The matter will return to the court for submissions on penalty and other relief sought by ASIC.