Full federal court dismisses ACCC case

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Medibank welcomed the full federal court's decision to dismiss proceedings brought against the insurer by the ACCC.

The regulator initiated the proceedings in June 2016. It alleged Medibank had engaged in misleading and deceptive or unconscionable conduct in 2014 with respect to the communication of changes made to arrangements with some in-hospital diagnostic service providers.

Justice O'Callaghan dismissed the proceedings in 2017. The ACCC appealed to the full federal court but Justices Perram, Murphy and Beach, dismissed the case late last year.

"Medibank defended the ACCC’s appeal because it firmly believed it had not acted unlawfully or unconscionably nor had it misled or deceived its customers," said the insurer in a statement.

According to CEO Craig Drummond, “We are pleased that the Court has again dismissed the ACCC’s case, as we firmly believe that our actions were not unlawful.

“These proceedings, which were initially brought against Medibank in June 2016, relate to the communication of changes made to arrangements with some in-hospital diagnostic service providers in 2014.

“Over the past 2 years we have continued to focus on delivering for our customers, responding to their needs and improving our offering. Today’s decision means we can continue to focus on our customers.

“The progress in our company is pleasing but we must learn from this and ensure that in every decision we make we are prioritising the interests of our customers.”

The ACCC said it was "carefully considering" the decision.