The corporate regulator has sued lead generator Clark Family, accusing the entity of misleading consumers about its insurance comparison services. 

The Australian Securities and Investments Commission alleges the misconduct extends to credit facility products and that the false representations occurred from September 2020 to this month. 

“ASIC alleges … Clark Family operated up to 70 websites offering consumers free online assessments for loans and insurance products,” the commission said in a statement.

The commission says the websites “represented that consumers could compare rates, quotes and options from multiple insurance providers and lenders, and receive tailored recommendations suited to their needs and circumstances. 

“ASIC contends those representations were false and misleading because Clark Family did not compare financial products or provide tailored recommendations. 

“Instead, it sold consumer enquiries through an internal bidding process, with the highest bidding broker receiving the lead and contacting the consumer directly.” 

The Clark Family website says the business is a digital platform management company, specialising in finance, insurance, and niche online services. 

It publishes websites focused on various lines of general and life insurance.

“On the consumer side, we simplify access to essential financial and insurance products, while on the business side, we provide effective lead generation and marketing solutions to our partners,” the website says.

ASIC's concise statement can be read here.