The Australian Competition and Consumer Commission (ACCC) outlined a range of concerns related to the sale of hearing devices, including instances of consumers re-mortgaging their homes or entering into finance plans to pay for high-end hearing aids.
Hearing aids range in price from around $1,500 to over $15,000 per pair, but many consumers are unaware that sales are being driven by sales targets and performance bonuses, a report released on Friday said.
“Some hearing clinics encourage clinicians to sell more expensive hearing aids by setting sales targets, paying commissions to clinicians, having arrangements that favour certain brands or are owned by companies that manufacture hearing aids,” ACCC Commissioner Sarah Court said.
The ACCC report said commissions of up to 15 percent per hearing device were being paid to some clinicians, with major clinics often offering sales training to employees.
The watchdog also raised concerns that several of Australia’s largest clinics were owned by hearing aid manufacturers, some of whom were offering “inducements to clinicians to sell their products, including all-expense paid travel to overseas conferences and consumer electronics.”
“Hearing clinics should be conscious of the incentives they offer and consider remuneration structures that reward service and quality advice ahead of sales,” Ms Court said.
The consumer watchdog has requested hearing clinic operators review their incentive programs and performance measures.
Audiology Australia, the peak professional body for audiologists with over 2,500 member, said it took the ACCC’s claims very seriously.
“We encourage any member of the public who has concerns regarding the clinical services provided by an audiologist to contact Audiology Australia,” chief executive Dr Tony Coles said in a statement.
Exploitive practices
Hearing loss affects one in six Australians, with prevalence rates the highest among people older than 70, according to the Australian Department of Health.
Customers who are suffering from hearing impairment, age-related health issues, disability, or on low incomes were the most vulnerable, the ACCC said.
The commission spoke with 59 consumers for the report, some of whom said they felt pressured into buying unnecessarily expensive hearing aids by hard-sell tactics.
Others reported being advised to purchase hearing aids and later learning their hearing impairment was the result of an undiagnosed, treatable medical condition.
In one instance, a pensioner with dementia was placed on a two-year finance plan after buying a pair of $13,000 hearing aids at a free seminar run by a clinic.
The hearing aids turned out to be unsuitable for him and are not used, but the finance plan could not be cancelled, the report said.
The ACCC spoke with 10 of Australia’s largest clinics, as well as clinicians and consumers for the report.
