Some hearing aid providers are using high pressure sales tactics such as touting hearing tests and pushing the most expensive brands, to maximise hidden commissions to elderly locals.

Chain stores such as Bay Audio and Audika are ‘vertically integrated suppliers’, which means they are sales-driven and have commercial and preferred supplier arrangements with specific hearing aid manufacturers. Current hearing aid prices range from $1,500 to $10,000 a pair.

Bay Audio is now trading in the Kiama Village, 150 metres from Audika Kiama and Hearing Sound Solutions on Terralong Street.

HEARING SOUND SOLUTIONS

Kiama Audiologist Stacey Clark owns Hearing Sound Solutions on Terralong Street. She said there was a significant difference between her independent and Australian-owned clinic and the rest.

“Ethically, patients should be offered a full range of hearing devices that are tailored to their needs and budget.”

Ms Clark said Audiologists were accredited clinicians with a Master's degree in Audiology whereas Audiometrists have a diploma qualification from TAFE.

“Hearing Sound Solutions is the only local private practice with a fully qualified clinical Audiologist in Kiama. We are not aligned with or owned by a hearing aid manufacturer,” Ms Clarke said.

“This gives us the advantage of offering, prescribing and fitting the most comprehensive range of technologically advanced hearing aids from all brands to suit each individual.”

The President of the Independent Audiologists Australia, Dr Tegan Keogh, warned consumers that the hearing industry was not regulated by the Australian Health Practitioner Regulation Agency and some businesses used commissions, targets and incentives for their clinical and front-of-house staff.

“This might result in patients feeling pressured to engage with a particular service provider, or purchase a specific device, and in our opinion that is not appropriate for a healthcare setting,” Dr Keogh said.

In 2017, an ACCC investigation found commissions, incentives and other mechanisms to drive sales created conflict with clinical independence and professional integrity.

“This conflict is particularly troubling in the sale of hearing aids, given that consumers who require hearing devices are often disadvantaged or vulnerable due to their hearing loss, age or other medical conditions.”

The ACCC was critical of the use of undisclosed sale commissions as high as 15 per cent, in a healthcare setting where consumers expected to receive impartial advice.

National Seniors criticised some retailers upselling hearing aids without their members having an understanding of the comparative cost benefit of the product being sold.

“Older people can feel pressured to purchase more expensive hearing aids if an audiologist claims that the less expensive model is not adequate. Some of our members are concerned there is an emphasis on selling the product rather than assisting with hearing health,” a National Seniors spokesperson said.

AUDIKA KIAMA

Audika's head office in Sydney did not reply to questions about the ownership structure of the Audika Kiama business or the rate of sales commission.

The Kiama store is part of a chain of more than 300 Australian stores owned by Demant in Denmark.

Audika has an interest-free payment plan with a 20 percent deposit using direct debit.

BAY AUDIO KIAMA

Bay Audio in Kiama ejected this reporter from its office and did not wish to be part of the story.

According to its website, Bay Audio sales staff participate in profit-sharing based on sales. It’s job advertisements on Seek state sales staff ‘must meet daily and monthly targets’.

Its staff are now touting for business in the Kiama Village, where people are asked to take a free hearing test.

Bay Audio is owned by Amplifon and has preferred supplier agreements with Starkey, Oticon, Resound and Signia.

Some sales-driven hearing centres are asking clients to take out loans to purchase hearing aids. Interest charges can be as high as 25.90 percent.

Prospective clients may be eligible for subsidised services and devices through the Australian Government Hearing Services Program and they can check their eligibility here.

Australians under 26 years of age and who are citizens or permanent residents, may also be eligible for services under the program.