Federal Court dismissed ACCC proceedings against Medibank

The Federal Court today dismissed the proceedings that were brought by the Australian Competition and Consumer Commission (ACCC) against Medibank in June 2016.

Justice O'Callaghan found that Medibank had not engaged in misleading and deceptive or unconscionable conduct with respect to the communication of changes made to arrangements with some in-hospital diagnostic service providers in 2014.

Medibank defended the case because it firmly believed it had not acted unlawfully or unconscionably nor had it misled or deceived its customers.

Medibank Chief Executive Officer Craig Drummond said the company welcomed today’s decision.

“We are pleased that the court has dismissed the ACCC’s case, as we firmly believe that our actions were not unlawful. Today’s 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.

“Since I joined Medibank just over one year ago, we have made significant changes to our business to improve both the service for all of our customers and provide them with greater value.

“We are making good progress but there is always more to be done.

“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.