Watchdog puts bite on iSelect

THE consumer watchdog says price compare website iSelect misled customers for two years by recommending energy retailers that paid it higher commissions.

The Australian Competition and Consumer Commission alleged yesterday that since at least November 2016, iSelect claimed consumers using its website would benefit from iSelect comparing all energy plans available from its partner retailers in a specific location.

The ACCC said that during this period, the listed comparison site also claimed it would recommend the most competitive plan to consumers.

“But we claim they were actually favouring some partner retailers over others, such as those on its Preferred Partner Program who were allowed to have more plans available on the iSelect website that excluded and targeted certain consumers,” chair Rod Sims said.

“These preferred retailers paid iSelect higher commissions.”

In a statement to the ASX, iSelect said it took its obligations under Australian consumer law very seriously and had processes in place to ensure compliance.

“iSelect has worked co-operatively with ACCC throughout its investigation,” it said.

iSelect shares closed at 63c yesterday, continuing a slide from a high of $2.20 in July 2017.

The ACCC said it was seeking pecuniary penalties, injunctions, declarations, correctives and costs in the Federal Court.

The ACCC alleges some partner retailers offered cheaper plans that were not made available in comparison results.

The cheaper plans were accessible via the Australian Government’s Energy Made Easy website, which shows all energy plans available in a consumer’s area.

“Free commercial comparison sites are often driven by business relationships with retailers that impact their recommendations,” Mr Sims said.

“This needs to be very clearly disclosed to consumers so they can make an informed decision about whether to use these services.” iSelect’s