ASIC has taken action against a company that said one thing in its headline advertising but another in its fine print.

Allianz Australia Insurance has compensated 740 Petplan insurance customers more than $231,000 after making “misleading” advertising claims, according to ASIC.

Allianz’s agent, Petplan Australasia, also corrected its advertising.

“Petplan’s website promoted the Petplan insurance product with a headline statement that the policy provided a 100% rebate on claims for veterinary bills,” ASIC said.

“A small-print disclaimer then qualified this by stating that the 100% rebate excluded a fixed excess and non-claimable items.”

ASIC deputy chairman Peter Kell warned businesses that they had to be honest in their advertising.

“Promotional claims that are made in absolute terms about a potential benefit must not create expectations that cannot be met,” he said.

“A misleading impression created by a headline claim cannot be corrected by a small-print disclaimer. When firms do not meet these standards ASIC will continue to take action to ensure better consumer outcomes.”