Opinion: Urgent Overhaul Required

03 Dec 2021

As originally published in the Australian Financial Review, Kyco Founder & CEO, Trond Smith discusses the hidden costs of comparison sites and how we can fix the services industry.

Every Australian household wants to save money. Whether it’s lower bills, cheaper groceries or bargain appliances, everyone wants more bang for their buck. So it came as no surprise when Roy Morgan research revealed three million Australians visit a commercial price comparison website each month, searching for a better deal on the likes of energy, internet and insurance. But here’s the kicker: many of these comparison sites don’t actually save consumers money. They don’t add any value to the services system, only higher costs, and consumers are the ones left with bill shock and financial uncertainty. This is the only system I know that harms the people it claims to service. Like a “comparasite”, it feeds off hidden commissions, surreptitiously draining genuine savings from unaware consumers. And those commissions are jaw-dropping. To find out who has been investigating these comparasites, read on here.