FED: ACCC says rebate ads misleading

AAP General News (Australia)
04-23-1999
FED: ACCC says rebate ads misleading

CANBERRA, April 23 AAP - Federal government ads promoting its 30 per cent private health
insurance rebate were misleading, the consumer watchdog said today.

But the Australian Competition and Consumer Commission (ACCC) said it would take no action
against the government as it had removed the ads, while there were doubts that the Trade
Practices Act even applied to government ads of this kind.

"The commission has carefully examined the government advertising in question and is
concerned that representations such as 'Private health cover will now be 30 per cent cheaper
for all Australians' could potentially mislead the public," ACCC chairman Allan Fels said in a
letter to shadow assistant treasurer Kelvin Thompson.

Mr Thompson had asked the ACCC earlier this year to investigate the ads after receiving
complaints from constituents.

Professor Fels said the ads were potentially misleading because a significant number of
people were eligible to receive a rebate under the means-tested scheme which the 30 per cent
scheme replaced on January 1.

As well, people who are insured with an organisation which is not a registered health
benefits organisation or who are not eligible to receive Medicare benefits will not receive
the 30 per cent rebate.

The ACCC raised its concerns with the Health and Aged Care Department, which advised that
print and television ads had ceased and that billboard advertising would be removed by the end
of March.

The department also agreed to issue a circular alerting health funds to the issues the ACCC
had raised.

"In light of the action taken by the department ... the commission does not intend to take
further action in respect of this matter at this time," Prof Fels said.

AAP kaw/sc/was

KEYWORD: INSURANCE

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