IAG Faces Class Action Over Pricing
IAG faces a class action by Slater and Gordon over claims of overcharging loyal customers with a pricing algorithm, amidst an ongoing ASIC case.
June 3, 2024
IAG Faces Class Action for Pricing Practices
Insurance Australia Group (IAG) is facing legal troubles as Slater and Gordon Lawyers have filed a class action lawsuit against them. The lawsuit claims that IAG utilized a pricing algorithm to secretly impose higher prices on loyal customers. This "loyalty penalty" resulted in charges that sometimes surpassed the discounts offered for customer loyalty.
In a related case, the Australian Securities and Investments Commission (ASIC) is also pursuing IAG for similar reasons. The ASIC allegations suggest the same algorithm could have been used to identify and charge higher renewal prices to customers deemed more likely to accept elevated premiums.
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