The Federal Court has ordered a $3.5 million penalty against ACBF Funeral Plans Pty Ltd (in liquidation) (ACBF) for misrepresenting that funeral expenses insurance provider ACBF was Aboriginal owned or managed when it was not.
The $3.5 million penalty handed down today comes in addition to the $1.2 million penalty ordered in September 2023 over another misrepresentation that consumers would receive a lump sum payment when this was not the case. This brings the total penalties ordered against ACBF to $4.7 million.
ASIC Chair Joe Longo said, 'Today's penalty is a strong deterrent to anyone who tries to mislead Aboriginal consumers by falsely claiming Aboriginal ownership or management.
'It is one of ASIC's enduring priorities to tackle misconduct targeting First Nations people and our work in this case shows exactly why.'
In handing down his decision, Justice Goodman agreed with ASIC's submission that the making of the representation that ACBF was Aboriginal owned or managed when it was not was deliberate and callous and involved egregious conduct.
Today's penalty decision comes after ASIC's successful appeal to the Full Federal Court overturning part of an earlier Federal Court decision in relation to ACBF and Youpla Group Pty Ltd (Youpla) handed down on 29 February 2024. The matter was remitted to the Federal Court for a decision on the appropriate penalty which was delivered today.
ASIC is not to enforce either penalty without leave of the Court because ACBF is in liquidation.
