Court confirms Youpla lied about being Aboriginal-owned

First Nations advocacy groups welcome the ruling, saying it sets an important precedent.

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Last updated: 4 Mar 2024

The Appeal Court has confirmed what advocates have long alleged – that dodgy funeral insurance provider the Aboriginal Community Benefits Fund (ACBF) had no Aboriginal ownership.

The company, also known as Youpla, has been found to have misrepresented themselves to consumers in selling their products.

A formal acknowledgement of the harm caused

The court overturned an earlier ruling that said there was insufficient evidence provided by the corporate regulator, the Australian Securities and Investments Commission (ASIC), on the matter of whether the company had any Aboriginal ownership between 2015 and 2018.

“ASIC brought this case in 2020 after consulting with First Nations advocate groups and because of the harm that we believed the ACBF and Youpla business had caused to Aboriginal peoples,” ASIC deputy chair Sarah Court says.

Youpla has been found to have engaged in numerous misleading and deceptive sales practices

“Today’s decision provides some formal acknowledgment of that harm and will be a deterrent to anyone who tries to mislead Aboriginal consumers about whether a business is Aboriginal owned or managed,” she adds.

Youpla has been found to have engaged in numerous misleading and deceptive sales practices by the Australian Financial Complaints Authority. The company went into liquidation in March 2022, leaving thousands of First Nations policy holders stranded with no way to pay for their funerals.

The federal government last month announced an ongoing scheme for over 13,000 policy holders to receive some of their money back.

ASIC has also commenced separate civil proceedings against director Ron Pattendon and four other former directors of Youpla/ACBF for breaches of their duties, a case which is ongoing.

“We hope this decision will deter other businesses”

Mark Holden, Dunghutti man and Aboriginal senior solicitor at Mob Strong Debt Help says the Appeal Court decision is vindication for what advocates have been arguing for decades, that ACBF engaged in “systemic deception” of their customers.

“The ACBF decision sets an important precedent on misrepresentation of First Nations ownership or ‘black-cladding’,” he says.

“In the future we will be able to identify and take action against black-cladding so legitimate First Nations-owned organisations are able to flourish and support their community. We hope that this decision will deter other businesses,” Holden adds.

The trial judge will determine the penalty at a later date.

Jarni

I started journalism at the Malaysian online news organisation Malaysiakini in 2013, before returning to Australia to study a Bachelor of Communications (Journalism) at RMIT in Melbourne. Before joining CHOICE, I worked for four years with SBS News as investigative journalist, digital journalist, cadet and South Australian correspondent. I've worked internationally in Malaysia and Indonesia and on a freelance basis for Al Jazeera English, ABC 730, Radio National, Reuters, BBC World Service and Deutsche Welle. I was winner of the Walkley Foundation's Young Journalist of the Year student category award in 2016 and the recipient of a Melbourne Press Club Michael Gordon Fellowship in 2022. In 2023 I was a Highly Commended finalist in the Quill Awards and I was a winner at the 2024 Excellence in Civil Liberties Journalism Awards. I am a proud member of the journalist's union the MEAA and in 2024 I was elected to serve on the Federal Council (National Media Section). You can find me on Twitter and LinkedIn. Recent articles by Jarni Groceries cost more than twice as much in remote First Nations communities Drive one of these car brands? This is how much of your data they're tracking Medical centres forcing patients to share their personal data Facial recognition technology in use at major Australian stadiums First Nations people missing tens of millions in super