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Federal Court dismisses ACCC allegations against Medibank

Posted: 31 August 2017 10:01 am


Court rules that "Medibank had not engaged in misleading and deceptive or unconscionable conduct".

The Federal Court has dismissed proceedings brought by the ACCC against Medibank.

The ACCC case stemmed from allegations that Medibank and it's subsidiary brand ahm engaged in unconscionable behaviour by failing to notify members of its decision to limit benefits for in-hospital pathology and radiology services.

"We took this case because we believed that Medibank’s failure to advise customers of the changes to their cover for in-hospital pathology and radiology services affected vulnerable consumers," said ACCC chairman Rod Sims.

However, Justice O’Callaghan dismissed all allegations, finding that Medibank had not engaged in deceptive, misleading or unconscionable behaviour.

Medibank CEO Craig Drummond said the company welcomed the court's decision.

“We are pleased that the court has dismissed the ACCC’s case, as we firmly believe that our actions were not unlawful. [The] decision means we can continue to focus on all of our customers and understand how we can better meet their health and wellbeing needs,” he said.

While the Medibank is happy with the outcome of the proceedings, Drummond said Medibank that there is always more that can be done to provide its customers with greater value and service.

“We must continue to meet the needs and expectations of our customers and hold ourselves to a very high standard. I am committed to leading that change,” Mr Drummond said.

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