Latest news with #CHOICE
West Australian
21-05-2025
- Business
- West Australian
‘Making it harder': Energy providers accused of deceptive practice
Australian consumers are getting ripped off $171 a year on their power bills due to remarkably simple trick by the electricity providers. According to research by Choice, Australians are getting ripped off by their power company due to deliberately confusing names. Choice alleges electricity providers are using the same name on two different energy plans, meaning unexpected Aussies are paying more for their power than they need to. Choice chief executive Ashley de Silva said it shouldn't be this hard to know if you're being ripped off on your energy bill. 'The potential impact of this practice is significant,' says De Silva. 'Choice estimates that reusing identical names for plans with differing prices could, in aggregate, be costing consumers approximately $65 million in savings.' In a lodgement to the ACCC the consumer group claims electricity providers deliberately make it harder for Australians to switch plans. The Australian Energy Regulator added a requirement in September 2023, forcing the energy retailers to make it easier for consumers to understand. As part of these changes power companies have to tell customers on their bills if they have a cheaper plan available and how much they could save by switching. The guideline requires a compulsory 'better offer' statement on the first page of the bill, under the heading 'Could you save money on another plan?' Choice claims to have collected almost 400 energy bills from January to March 2025, finding 64 energy plans have identical names. As such, Choice alleges Australians believe they are on the cheapest plan possible and are paying more than they should for electricity. 'Across these 64 examples, people could have saved an average of $171 annually had they switched to the cheaper plan, even though it had the same name. 'The highest potential savings amongst these examples was $588 per year.' Ms De Silva said the energy market is already difficult for Aussie households to navigate without the need for misleading practices such as using the same name on plans. 'At a time when we're all looking for ways to save, energy companies are making it harder and harder to know what you're paying and why,' De Silva said. 'This practice is extremely confusing, and potentially misleading or deceptive. 'Supporters who shared their bills with CHOICE often thought that the offer to save money by switching to a plan with an identical name was a mistake, and likely missed out on significant savings.' The submission to the ACCC comes on the eve of millions of Australians paying more for their power. Australian Energy Regulator (AER) has released its latest default market offer (DMO) draft determination in April which is the maximum households living in NSW, South Australia and South East Queensland will be paying. Under the draft, households' power bills could rise between 2.5 and 8.9 per cent depending on where a person lives. Small business customers could see rises between 4.2 and 8.2 per cent.
Sky News AU
21-05-2025
- Business
- Sky News AU
Energy retailers accused of misleading customers with 'sneaky' price tactics in landmark complaint lodged to ACCC
Consumer watchdog CHOICE has lodged a "super-complaint" with the ACCC targeting Australia's energy retail sector. In July 2024, CHOICE, alongside the Consumer Action Law Centre and the Council of Small Business Organisations Australia, was recognised by the federal government as one of the first organisations in Australia authorised to file a 'designated complaint'- a grievance similar to the UK's 'super complaint' - with the Australian Competition and Consumer Commission. The consumer watchdog argues energy retailers' "complicated and confusing" price tactics are the 'stuff of nightmares' and are intended to keep people 'as confused as possible.' The action marks the first designated complaint from CHOICE and only the second example of this kind of action in Australian history. The 'super-complaint' flagged concerns over 'potentially misleading' tactics, namely advertisement of new plans that are cheaper yet have an identical name, suggesting customers who were under the impression they were already on the best deal are unknowingly stuck with a higher price. Ahead of lodging the complaint, CHOICE reviewed 382 energy bills issued between January and March 2025, 64 of which advertised a legally required 'best' or 'better offer' with the same names as the ones customers were already on. CHOICE CEO Ashley de Silva said customers were led to believe they were already on the best plan because of the duplicate names. 'Across these 64 examples, people could have saved an average of $171 annually had they switched to the cheaper plan, even though it had the same name. The highest potential savings amongst these examples was $588 per year," Mr de Silva said. "The potential impact of this practice is significant. CHOICE estimates that reusing identical names for plans with differing prices could, in aggregate, be costing consumers approximately $65 million in savings.' A 2024 review by the ACCC found that 81 per cent of consumers could have saved money by switching offers. "It shouldn't be this hard to know if you're being ripped off on your energy bill," Mr de Silva said. "We're calling on the ACCC to enforce the law with strong court action to put an end to these dodgy practices costing consumers money." In addition to the identical names, CHOICE has urged the ACCC to probe whether energy retailers are breaking the law by using names and descriptions that imply savings for poor-value plans, as well as encouraging consumers to switch to plans the customer is not eligible for. "CHOICE can only submit one designated complaint each year, and much like the Shonky Awards, we only use it for the most serious issues we see. We are calling on the ACCC to urgently investigate these sneaky tactics used by energy retailers to confuse and potentially mislead consumers," Mr de Silva said. The ACCC must publicly respond to the complaint within 90 days.
Yahoo
12-05-2025
- Health
- Yahoo
The CHOICE program's next phase: Medicaid diversion
Indiana's CHOICE program will formally have a "Medicaid diversion" pilot as part of its mission to extend senior independence. (Getty Images) For decades, Indiana's Community and Home Options to Institutional Care for the Elderly and Disabled program — CHOICE, for short — has sought to keep Hoosiers out of long-term care facilities through home modifications and services like meal delivery or transportation. After the 2025 legislative session, it will also become a 'Medicaid diversion program' in two pilot areas. CHOICE's supporters don't see the new duty as an expansion of the program, but rather codifying something it's already doing. 'The CHOICE program has always been a Medicaid diversion program,' said Rep. Ed Clere, R-New Albany. 'This year's legislation makes that explicit.' Created in 1987, CHOICE is funded entirely with state dollars, but pivoted in 2014 to focus on preventative services with updated eligibility guidelines. Additionally, the program offers services on a sliding scale, meaning that there are no income restrictions on eligibility. 'I don't think it should be the policy of the state to wait until people are on the brink of losing independence and in poverty before we help them try to stay in their home or in another community-based setting and avoid institutionalization,' said Clere. '… since its inception, the CHOICE program has helped countless Hoosiers maintain their independence and, as a result, their quality of life.' Dollars are funneled through the state's Area Agencies on Aging, which are scattered around the state. The two pilot areas will be in the eastern and western parts of the state, in areas surrounding Richmond and Terre Haute, respectively. Thrive West Central, in Terre Haute, will spend the next year setting the pilot up and identifying ways to prolong a Hoosier's independence, with a special focus on fall prevention and chronic disease management. 'We think this is a fascinating study and we think it's great for older Hoosiers,' said Ryan Keller, the executive director of Thrive. 'We think this could change the trajectory of our folks, of our aging people, going on Medicaid.' Other important provisions of the new law, which goes into effect in July, add dementia education services for caretakers and allows the overseeing agency to study the feasibility of realigning Indiana's senior care organizations. The state currently has 15 providers covering 16 areas, but the geographic area and population of each varies widely. Nursing homes and other institutional forms of long-term care made up 19% of the state's Medicaid expenses in 2024, despite the fact that only 2% of the state's enrollees used those services. According to the 2025 CHOICE report, the annual cost of a CHOICE enrollee is $5,203 per year. In comparison, the average nursing home resident costs the state $28,343 annually — though such care is the most expensive form of long-term care. Of the 5,631 Hoosiers who used CHOICE in 2024, 3,439 were Medicaid eligible. Earlier this year, student teams at Butler University analyzed Medicaid patient data provided by the Family and Social Services Administration with the goal of identifying underlying cost drivers. The students identified falls as a major health concern, concluding that more than 30% of Indiana's seniors experienced falls annually. Injuries from such events are one of top reasons why someone transitions from independent living to institutional care. As outlined in a release from collaborator Parkview Health, if half of the state's seniors participated in annual fall assessments, that alone could save the state an estimated $115 million and prevent 41 deaths each year. To Hannah Carlock, a vice president with RJL Solutions currently serving as interim CEO of the AAAs association, CHOICE is a natural solution to reduce Medicaid enrollment and costs. 'We're seeing more and more people declining on Medicaid, so why don't we really bolster the CHOICE program?' she asked. '… it's very cost effective and, clearly, being at home you have a better quality of life.' In particular, CHOICE has been used as an option to prolong someone's independence before they might need Medicaid waiver services — an especially crucial offering as thousands continue to languish on the state's waitlists. In addition to falls, the Medicaid diversion pilot program seeks to target chronic disease management, such as heart disease or diabetes. 'Even though you may have chronic, congestive heart failure or you have diabetes … those diseases can be managed to a certain degree,' said Keller. Carlock, Keller and Clere pointed to specific, small interventions that can help aging seniors such as: Eliminating trip hazards like throw rugs Putting grip pads under rugs on slippery surfaces, like tile Putting washers and dryers on the main floor so people don't have to carry heavy laundry baskets down a flight of stairs Grab bars in bathrooms Methods to track medication usage Connecting someone to transportation and meal services 'Those two key categories just seem very natural, very intuitive, and they're all things that are controllable in our environment,' Keller said about the Medicaid diversion pilot. 'This is where we feel like we have the greatest control to go and start a dedicated diversion program so we can slow, delay or prevent folks from having these kinds of preventable accidents.' 'We really do believe that, with small interventions on the preventative side of things, that it can have huge, lasting echoes of cost savings on the backend,' he continued. Evaluating the effectiveness of the program, and the final report, will be done by Notre Dame University's Wilson Sheehan Lab for Economic Opportunities, with specific parameters set to be defined in the coming weeks. Clere's House Enrolled Act 1391 didn't initially include 'Medicaid diversion' specifically, but emerged after discussions with Clere's peers in the General Assembly. The prospect of decreasing the state's Medicaid commitment — Indiana's fastest-growing and second-largest expense — became even more appealing in the last week of session after lawmakers learned of a $2 billion budget shortfall. But, like nearly every other spending category, CHOICE got a 5% cut in the final budget — falling from $48.8 million each year to $46.2 million. AAAs got $29.3 million of those dollars in 2024. CHOICE is overseen by a board that meets every other month and will convene on Thursday, May 15 at 1 p.m. To learn more about the board, including its vacancies, livestreams and meeting minutes, visit the state's website. The senior care organizations charged with overseeing the pilot program will have to work within their existing budgets to get the project off the ground — though private partnerships could buoy their efforts. Keller pointed to one potential avenue for funds: the nearly $2 million AAAs left unspent in the last year. Such a reversion occurred due to the 'unpredictability' of a community's needs, Keller said, as demand varied from month-to-month. But AAAs will also have the chance to save some needed funds under another part of Clere's bill: striking the requirement for some service providers to be Medicaid approved. With the change, 'CHOICE dollars will go five times as far,' Keller said. Keller used building a ramp as an example. Though his community, and many others, have volunteer groups to provide free labor, they're not approved as a provider by Medicaid. That means no CHOICE dollars can be used to purchase the needed materials. A Medicaid-approved provider might charge somewhere between $15,000 and $20,000 for a job that another group would do for $3,000, he said. 'Nothing's different … it's the same boards, the same screws, same everything. But that's the cost difference,' Keller said. Clere said that identifying which services to decouple from Medicaid approval and partnering with Notre Dame was part of the collaborative legislative process, noting that the proposal was amended a handful of times before becoming law. 'I'm confident (decoupling) will lead to a lot more options and competition, which will provide opportunities for additional cost savings,' said Clere. Clere, who has been a member of the CHOICE program's board for well over a decade, admitted that it'd become a 'big part of (his) legislative focus and work.' 'I'm very passionate about it. I've seen the difference it can make in the lives of individuals and families,' he said, '… I'm excited about HEA 1391 and everything it represents and all of the good things that are going to come from it.' SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX
SBS Australia
04-05-2025
- Business
- SBS Australia
Aussie shoppers in home brand shift — but is there a catch to lower prices?
Coles suggests that one in three customers are buying more home brand products to save at the check-out. But why are they so cheap? Source: Getty / Jacobs Stock Photography Ltd As grocery prices continue to climb, amid a broader , Australians are looking for any way to save. And it turns out that might mean re-entering the sometimes stigmatised territory of buying home brand alternatives. The latest quarterly update from supermarket giant Coles found that one in three customers were buying more home brand products to save at the checkout. But what is a home brand product — and does the lower price come with a catch? Home brand groceries — or private labels — are items made specifically for supermarkets and sold under their branding. In some cases, the exact same factory might produce a fancier brand of tinned tomatoes and a supermarket's home brand variety. "That doesn't mean the product is always exactly the same as the 'branded' product; it just means it was made at the same factory," Sarah Megginson, media spokesperson at financial comparison site Finder, told SBS News. "In some cases, the product is indistinguishable from the brand name, and in other cases, it tastes or works completely differently," she said. There are a few reasons why home brand products cost less than branded ones. Megginson points to reduced packaging costs, fewer or no margins for intermediaries in the supply chain, and sometimes lower ingredient or formulation costs. But the biggest factor? Minimal marketing spend. "Brands not only invest huge dollars in brand development and marketing campaigns for their products out in the world, but they also spend a small fortune with Woolworths to secure 'shelf space' in the prized eye-level shelves or end of aisles," she said. "Home brand products are obviously not investing in this — they're happily sitting on the bottom shelves, out of the way of their more expensive counterparts." "They are almost always cheaper than brand names and when budgets get tight, they're a great option if they do the job on a taste — or in the case of cleaning products, a performance — basis," Megginson said. Kate Browne, head of research at Compare Club, says home brand quality in Australia is "very good". The only thing you might miss is a range of options. A home brand pasta sauce might just have tomatoes in it, she says, while a branded version could include basil, garlic, or other flavours. Sometimes, price differences also come down to extras — like whether your tinned tomatoes have a ring-pull lid or not. According to CHOICE, the answer is yes — often better than you'd expect. The consumer advocacy group has tested a number of home brand products over the years and says they frequently outperform pricier alternatives. "We've found this happens across a number of categories, including tea bags, coffee, ice-cream, dishwasher detergent, toilet paper, and more," a CHOICE expert told SBS News. "For example, our most recent tea bag test found that Aldi's Just Organic Black Tea was the highest scoring overall out of 32 tea bag brands. At just 6 cents per bag, we found they were a cheaper and better-tasting option than brands like Lipton, Twinings, Tetley, and T2." For supermarkets, home brand products can be more than a budget-friendly option for shoppers — they're also a profit booster. "Supermarkets love home brands because they own those brands," Browne said. "We've seen a huge shift in the way our supermarkets in Australia retail. Ten or 12 years ago, there were a lot more name brands. Now we've seen a huge shift to more and more supermarket-owned brands, and that is purely for profit." Browne explains that when supermarkets deal with name brands, they have to manage external retailers and suppliers, which can cost more. With home brands, they cut those ties — and keep more of the margins. While it can mean less choice for consumers, it often results in lower prices and more control for the retailers. As cost of living remains front of mind for many Australians, our shops are now looking a little different. A January survey from CHOICE found 84 per cent of households are concerned about the cost of food and groceries. "Due to rising costs, many people are switching to cheaper products to save money on their grocery bills," CHOICE said. A January Finder survey of 1,013 people found that 39 per cent are switching to cheaper brands due to financial pressure. Similarly, Compare Club research found that 80 per cent of Australians are experiencing high or extreme levels of bill stress, with half of them cutting back on essentials like food and fuel. "We're seeing a lot of shift in behaviour. Concerningly, we're seeing people rely on buy-now-pay-later to buy groceries in some scenarios," Browne said. "But we're also seeing people being a lot more agnostic around brands. People are looking for the cheapest." She also says people are now shopping around at multiple stores before heading to the big supermarkets in a bid to save some cash. "They're looking for the best possible deal and they're trying new brands." Once considered a last resort, home brand products are now a regular feature in many households — and the stigma is fading. "We've seen a real big shift over the last couple of decades around home brands," Browne said. "There was a bit of a stigma back in the day, but now we've seen them become a real game changer in the market."
Yahoo
20-03-2025
- Business
- Yahoo
Australia's best hot cross buns crowned and they're just $1.40 each: 'Perfect'
Long gone are the days when hot cross buns were merely offered in the fruit or no fruit variety. These days, they come in every flavour under the sun and are available in supermarkets pretty much all year round (much to the chagrin of some shoppers). So, how are we to know which of these tasty treats are worth our hard-earned money and which are better off left on the shelf? And how do we know whether to head to Coles, Woolworths, Aldi or someplace else to stock up on our Easter goodies? While spending a day tasting hot cross buns is a tough job, someone has to do it, and this year, a panel of three CHOICE judges spent hours meticulously blind testing 19 varieties of hot cross buns to bring Aussies their number one. 'We assessed appearance, aroma, flavour and texture and we tasted the hot cross buns toasted and untoasted,' Brigid Treloar, Food Consultant and CHOICE judge told Yahoo Lifestyle. 'We also made an overall comment on each sample about whether we liked it or not and why. It's a very good process. The three judges don't talk so you don't know what the others score and then the CHOICE team put the results together to work out the winners.' RELATED: New $5.50 Woolworths sweet treat wows taste testers: 'They've nailed it' Coffee from Coles, Woolies at '30c a cup' beats premium ground in CHOICE taste test Coles, Aldi ice cream from $6.50 beats gourmet brand in CHOICE taste test This year, the Hot Cross buns came from Coles, Woolworths, IGA, Aldi, Bakers Delight and Costco. 'With the cost of living, I think they went mainstream and focused on hot cross buns that are available everywhere. Those little artisan bakers just aren't able to compete on price,' Treloar explained. But, as in previous years, they still tested a range of different styles and rated traditional fruit, chocolate and gluten-free hot cross buns. Taking the win with a 75% score, Coles' Luxurious Fruit Hot Cross Buns impressed the judges across the board. The experts praised the buns - which retail for $5.50 for a pack of 4 - for their great array of fruits, which produced interesting flavours and textures. 'The winner was perfect for toasting and eating uncooked which doesn't always happen,' Treloar said. Coming in a close second the delicious Aldi Bakers Life Fruit Hot Cross Buns had a score of 72%. Coles took another spot on the podium with its Coles Bakery Easter Traditional Fruit Hot Cross Buns, which the judges handed 66%. Treloar told us they eat so many hot cross buns during the tasting day that by the end of it all she's desperate for something salty. She also admits that since the blind tests weeks ago she hasn't eaten a single bun. Easter ruined, right there! 'You have to taste each bun at least twice – toasted and untoasted and then if the fruit isn't evenly distributed you might need another bite to make sure you've tasted that. I'll have a bigger bite if I do like it and there is a spit bucket if you don't. It does sometimes get to that.' There was no spitting out the chocolate buns but Treloar said there was quite a variation of aroma and chocolatey flavour in the ones they tasted. Coming in first again was a Coles product: the Coles Bakery Easter Choc Chip Hot Cross Buns, which retail for just $4.40 for a pack of 6. With an an impressive score of 82%, the experts were pleased with the amount of chocolate chips, noting the chocolatey smell was evident. If you prefer a chocolate hot cross bun, the CHOICE experts recommend trying this one. At 67 cents per bun the Aldi Bakers Life Chocolate Hot Cross Buns with Milk Chocolate Chips was a winner on price as well as taste. In its only placement in the top spots Woolies took out third with its Bakery Hot Cross Buns made with Cadbury Milk Chocolate Chips. If you're unable to eat gluten for health or personal preference reasons, there is no need to miss out on some Easter fun! SHOP: 💸 Kmart, Bunnings shopper's simple $4 trick for saving hundreds each year: 'Worth it' 🧸 Aussie brand's 'amazing' new range to help bad sleepers: 'Perfect solution' ☕️ 'Love it': $2.25 item the secret to perfect at-home coffee Treloar noted that the hot cross buns in the gluten-free category were getting better each year but for 2025 the winner was Aldi Bakers Life Gluten Free Fruit Hot Cross Buns which received a score of 68%.
