Youi is facing 15 charges under the Fair Trading Act for allegedly misleading practices. The Commerce Commission filed the charges in the Auckland District Court, alleging the insurance company used misleading tactics to sell policies to people who were only interested in a quote.
The commission alleges Youi:
- made false or misleading representations on its website regarding consumers’ ability to obtain a quote online
- made false or misleading statements during telephone sales calls with consumers, including telling them bank or credit card details were required to generate a policy quote
- asserted a right to payment for unsolicited insurance policies by sending letters demanding payment and/or debiting consumers’ bank or credit card accounts without their express permission or knowledge
- sent invoices to consumers in relation to unsolicited insurance policies that did not specify that the consumer was under no obligation to pay for the policies.
The charges are representative and related to alleged misleading claims made between July 2014 and February 2016.
The commission said Youi intended to plead guilty to the charges.