ANZ will send $100 gift cards to customers who weren't entitled to them after the bank's advertising of a promotion was ruled to have the potential to mislead.
The corporate regulator said it had concerns that consumers were deceived by ANZ's newspaper and online ads for income protection that offered a bonus $100 ANZ Visa gift card.
The fine print showed customers did not qualify for the gift card unless they maintained their policy for at least a year and paid all premiums when due.
But the Australian Securities and Investments Commission believed those terms were not sufficiently prominent to ensure consumers would not be misled.
"What looked to be a simple offer turned out to have unexpected conditions attached," ASIC deputy chairman Peter Kell said.
"Advertising of financial products should allow consumers to clearly understand what they are entitled to receive."
In response to ASIC's concerns, ANZ is waiving the conditions and sending gift cards to 742 people, including 170 who failed to adhere to the fine print.
