Australia’s Federal Court fined ACBF Funeral Plans A$3.5 mn for falsely representing that the funeral expenses insurance provider was Aboriginal-owned or managed when it was not.
This A$3.5 mn penalty comes in addition to a A$1.2 mn penalty imposed in September 2023 for misrepresenting to consumers that they would receive a lump sum payment when they were only reimbursed for funeral-related expenses up to the benefit amount upon providing proof, the Australian Securities and Investments Commission stated.
At that time, the court determined ACBF misled plan holders by claiming they would receive a lump sum of their chosen benefit amount.
Instead, they were eligible only for reimbursement of actual funeral expenses up to that amount, ASIC noted.
ACBF, now in liquidation, was wholly owned by Youpla Group. It offered, promoted, and sold the Aboriginal Community Funeral Plan primarily to Aboriginal consumers, who paid premiums so their nominees, such as family members, would be covered for funeral-related expenses up to a selected benefit amount.
The Federal Court agreed with ASIC’s argument that ACBF’s claims of Aboriginal ownership or management were deliberate, callous, and involved egregious conduct.
ASIC Chair Joe Longo stated the penalty sends a strong deterrent to anyone attempting to mislead Aboriginal consumers by falsely claiming Aboriginal ownership or management, adding that addressing misconduct targeting First Nations people remains a key ASIC priority.
The penalty followed ASIC’s successful appeal to the full Federal Court, which in February 2024 overturned part of an earlier Federal Court decision concerning ACBF and Youpla.
The matter was sent back to the Federal Court to determine the appropriate penalty.
ASIC began proceedings in October 2020, alleging four misrepresentations by ACBF, including claims that it was owned or managed by an Aboriginal person or persons, and that Youpla was involved in those misrepresentations.
ASIC clarified it did not enforce either penalty without the court’s decision because ACBF is in liquidation.
