Powered by MOMENTUM MEDIA
subscribe to our newsletter
Virgin Money fined for misleading advertising

Virgin Money fined for misleading advertising

Virgin Money (Australia) Pty Limited has paid $30,600 in penalties after ASIC issued three infringement notices for misleading online and television advertising.

Each infringement notice attracted a penalty of $10,200, according to the corporate watchdog.

The misleading representations related to the promotion of Virgin Money’s ‘Quick & Easy’ life insurance product and appeared on television up until May 2013, and online up until March 2014.

Advertisement
Advertisement

ASIC was concerned that the advertising contained the following misleading representations about the process involved in applying for ‘Quick & Easy’ and the life insurance coverage provided under the product:

  • ‘No health or lifestyle questions’ would be asked by Virgin Money when in fact, the ‘Quick & Easy’ application form contained specific health and lifestyle questions, such as queries around smoking habits. Responses to these questions were then used to calculate premiums
  • ‘Weight is not a factor that affects coverage of the Product’, when in fact weight could be a relevant factor in determining coverage offered under ‘Quick & Easy’

“Purchasing life insurance is an important decision and consumers should be able to confidently rely on representations made to them in advertising,” ASIC deputy chairman Peter Kell said.

The payment of an infringement notice is not an admission of a contravention of the Australian Securities and Investments Commission Act 2001 consumer protection provisions.

ASIC can issue an infringement notice where it has reasonable grounds to believe a person has contravened certain consumer protection laws.

Virgin Money fined for misleading advertising
mortgagebusiness
  • 23
    Days
  • :
  • 07
    Hours
  • :
  • 54
    Minutes
  • :
  • 01
    Seconds

EARLY BIRD CLOSING SOON
Have you secured yours?

Latest News

Stagnant housing market activity is expected to prolong the stay of borrowers in arrears, with the forecast fall in home values to be among...

The non-bank sector is expected to “lead the way” in 2019, after issuing more than 60 per cent of new home loans in 2018, according to S...

The volume and value of new residential buildings fell in the September quarter 2018, reflecting the “softening” housing market the HIA ...

FROM THE WEB
podcast

LATEST PODCAST: How a softening property market will impact the mortgage sector

Is enough being done to ensure responsible lending?