Customers of failed funeral insurance company Youpla—previously known as the Aboriginal Community Benefit Fund (ACBF)—will be compensated by the federal government at a cost of almost $100 million (US$64 million).
The company was allowed to deduct premiums from customers’ Centrelink payments for 16 years, between 2001 and 2017, despite being brought before the courts on multiple occasions for false and misleading conduct, and for breaking anti-hawking laws, which prohibit unsolicited marketing and sales of financial products.
For instance, in 1999, the Australian Securities and Investment Commission (ASIC) alleged ACBF had been “unconscionable, misleading and deceptive” to Indigenous customers, including by having salespeople visit Indigenous communities without appropriate permission and using the Aboriginal flag to falsely represent that it was Indigenous-owned.
This was settled out of court, and the company was ordered to change its marketing material to include a disclaimer stating that it was a private company not connected with any Aboriginal or government organisation.
