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Regulator Sues Comparison Website Choosi for Alleged Misleading of Insurance Customers
ByAinvest
Tuesday, Jun 3, 2025 3:07 am ET1min read
Choosi, a comparison website, is facing legal action from the corporate regulator for allegedly misleading customers searching for insurance. The regulator claims the website made false or misleading representations to customers.
The Australian Securities and Investments Commission (ASIC) has filed a lawsuit against insurance comparison provider Choosi Pty Ltd, alleging that the company misled prospective customers through its funeral and life insurance comparison services. ASIC claims that from at least July 2019 to the present, Choosi only compared policies issued by a single insurer, with all policies distributed by Greenstone Financial Services Pty Ltd, a company associated with Choosi [1].The regulator alleges that Choosi made false or misleading representations, claiming to offer a range of insurer options when in reality, customers were limited to a single provider. This has led to the sale of at least 4,225 funeral insurance policies and 9,478 life insurance policies, with Choosi receiving $61 million in commissions during this period [1].
ASIC Deputy Chair Sarah Court stated, "We allege Choosi misled thousands of consumers into thinking they were comparing options from a range of insurers. We will contend people were led to believe they were making a sensible decision by comparing policies; however, they were denied genuine choice" [1].
The lawsuit follows other recent consumer-focused actions by ASIC, including against Snaffle, Resimac, and Hollard Insurance. The maximum penalty for a single contravention of the relevant provisions is $16.5 million [1].
The legal action highlights the importance of transparency and genuine choice in financial services. While comparison websites can be useful, they must provide a meaningful service and not operate solely as a sales channel [1].
References:
[1] https://asic.gov.au/about-asic/news-centre/find-a-media-release/2025-releases/25-092mr-asic-sues-choosi-for-allegedly-misleading-customers-through-its-insurance-comparison-service/
[2] https://invezz.com/news/2025/05/27/citgo-auction-deadline-extended-until-june-2-as-legal-uncertainty-clouds-bidding-landscape/
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