ASIC sued RACQ Insurance for misleading 570,000 customers with false premium comparisons from 2019 to 2024.

The Australian Securities and Investments Commission (ASIC) has sued RACQ Insurance over allegations it misled over 570,000 customers from 2019 to 2024 by using inflated "last period premium" figures in renewal notices. These comparisons often showed smaller increases than actual rates, misleading consumers about costs, especially during a cost-of-living crisis. The practice affected multiple insurance types and continued despite early complaints, with no corrective action for years. ASIC claims the false comparisons hindered fair competition and consumer decision-making. RACQ admitted the issue, said it self-reported after a media inquiry, apologized, and is cooperating with regulators. The case seeks penalties, declarations, and publicity orders.