TAL Direct Pty Limited, trading as InsuranceLine (InsuranceLine), has paid a penalty of $10,200 after ob体育 issued an infringement notice for false or misleading television advertisements promoting its income protection product.
The television advertisements depicted a couple in their backyard, with a voiceover saying:
鈥�This is Kylie. This is her hubby Tom. And this is the bite Kylie got in Bali which will lead to a nasty infection leaving her off work for five weeks. And this is Kylie and Tom鈥檚 Income Protection Plus that she took out last year just in case something like this happened. It鈥檒l keep their bank balance healthy while Kylie鈥檚 recovering.'
The written representations on the screen stated:
鈥業llness and injury cover up to 85% of income to $10,000 a month鈥櫬�
There were also a number of fine print statements at the bottom of the screen, including:
鈥�Waiting periods, payout periods, limitations and exclusions apply鈥�
ob体育 was concerned that the representations in the advertisements were false or misleading, as they were likely to give the impression that a person off work for five weeks due to eligible ill-health would be entitled to:
- a benefit from the product for the entire five weeks. In fact, such a person鈥檚 claim would be subject to a minimum waiting period of at least 14 days, and up to 28, 60 or聽 90 days depending on the policy chosen, during which the person would not be entitled to any benefits from the product.
- receive into their bank account at least part of any benefits to which they were entitled during the five weeks they were off work. However, the product鈥檚 Product Disclosure Statement specified that claimants would be paid a month in arrears, and only after it had been confirmed that they had been continuously off work for the duration of the applicable waiting period.
ob体育 considered the fine print in the advertisement was insufficient to correct any misleading impression created on any viewing, due to its lack of details, clarity and prominence.
ob体育 Deputy Chairman, Mr Peter Kell said, 鈥業n this case, the benefits portrayed by the advertisements could not be obtained by consumers due to the way the product operated.'
'Promoted benefits of a product must be consistent with what the product will in practice provide.鈥�
InsuranceLine immediately ceased broadcasting the advertisement after being notified of ob体育's concerns.
The payment of an infringement notice is not an admission of a contravention of the ob体育 Act consumer protection provisions. ob体育 can issue an infringement notice where it has reasonable grounds to believe a person has contravened certain consumer protection laws.
Background
The income protection product is issued by TAL Life Limited and distributed and promoted by InsuranceLine, a trading name of TAL Direct Pty Limited.聽