ASIC has warned operators of credit comparison websites of the need to ensure they comply with their obligations under consumer protection laws as discussed in Regulatory Guide 234 Advertising financial products and advice services: Good practice guidance (RG 234) .

ASIC’s concerns with some comparison websites include:

• ensuring they are providing accurate information and not misleading consumers into acquiring unsuitable or more expensive products than they need;
• only comparing a limited number of brands/products from a limited number of providers. This may not be clearly disclosed which creates the impression that the extent of comparison is much broader than it actually is;
• using ‘ratings’ and ‘rankings’ for products without a clear explanation of the basis for those ratings and rankings;
• referring to ‘special offers’ and ‘featured products’ without properly explaining the basis of selection of certain products.
• for credit comparison websites that advertise loan products, not disclosing comparison rates as required under the National Credit Code.