ACCC investigates audiology clinic sales tactics

The commission is seeking public feedback after the ABC revealed audiologists in major clinics around the country were receiving commissions on their sales and lavish sales incentives, including international flights.

Better Hearing Australia has welcomed the investigation.

Chief executive Michele Barry told The Senior she regularly dealt with people who had been given unrealistic expectations of what a hearing aid could achieve.

"We hear many stories about the sales pressure many feel when they go to audiologists," she said.

"There are so many great audiologists who support so many, but the sector must be accountable for outcomes."

Since 2005 manufacturers have bought many of the country's smaller audiology clinics, leading to what some say have been pushy sales tactics which put the need to sell expensive equipment above a proper evaluation of the client's needs.

About one third of Australian audiology clinics are now owned by hearing aid manufacturers, and even at the government funded Australian Hearing audiologists receive a 5 per cent commission on the price of each device they sell, potentially leading to significant incentives to sell more expensive hearing aids.

Top hearing aids can cost thousands of dollars, meaning commission earnings for selling the top of the line products can be lucrative.

To access government funding, including subsidies for supplying pensioner hearing aids, audiologists must be members of Audiology Australia.

That organisation specifies in its code of conduct that members must disclose and take steps to avoid any actual, potential or perceived conflict of interest.

However a spokeswoman told the ABC receiving commissions did not necessarily breach the code, providing the benefits were disclosed to the customer.

Some audiologists told the ABC they had been pressured by the major companies to fit elderly people who responded to aggressive marketing campaigns with hearing aids even if their hearing was normal.

One qualified audiologist said she had attended a training session where a marketing expert took her certificates of qualification, tore them apart and said they meant nothing without sales techniques.

Audiology Australia released a statement saying there was no control over who could sell and fit hearing aids in Australia.

"Despite Audiology Australia making numerous entreaties to government to regulate the practice of hearing aid fitting to ensure clients are not exposed to questionable financial and health-related risks from other persons providing audiological services, hearing aid fitting remains unregulated," the statement says.

The Department of Health advises practitioners they should declare any financial arrangements that could cause a conflict to clients before they make a recommendation.

The ACCC's Isabelle Arnaud said the commission was now conducting preliminary enquiries to assess the nature and extent of the problem, and whether the practices of some audiology clinics raised consumer issues.

"We are assessing whether there are broader issues within the industry rather than resolving individual complaints," she said.

All information will be treated confidentially.

Submissions close on November 6.