Youi to plead guilty to misleading sales charged, regulator says

Thursday 11th August 2016

Youi NZ will plead guilty to charges of using misleading sales practices when trying to sell insurance policies to potential customers seeking a quote, the Commerce Commission says.

The antitrust regulator said 15 charges under the Fair Treading Act have been laid against the local unit of the South African insurer, claiming Youi made misleading representations on its website over customers' ability to get a quote, during sales calls including telling clients they had to provide bank or credit card details, asserting a right to payment for unsolicited policies, and sending invoices to unsolicited customers without telling them they had no obligation to pay.

"Youi has cooperated with the commission's investigation and has indicated that it intends to plead guilty to the charges," the regulator said in a statement.

The commission completed its investigation into the insurer's sales techniques earlier this year after receiving a number of complaints.

Youi incorporated in New Zealand in 2013, launching a year later offering home, contents and vehicle insurance.

BusinessDesk.co.nz

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