A class action lawsuit has been filed against Arcare in federal court, alleging the company systematically charged residents at more than 50 aged care facilities for services they could not use or that the provider was legally obligated to provide at no additional cost. The alleged conduct occurred between July 2020 and July 2026, impacting facilities in New South Wales, Victoria, Queensland, and the Australian Capital Territory.

The statement of claim alleges a daily "additional services fee" was part of a "signature package" charged to residents, including fees for meals that providers are legally required to offer. Residents were allegedly told these signature packages were non-negotiable and that the additional services fee was a mandatory condition of admission. "The signature package included mandatory services that Arcare was obliged to provide … and could not lawfully charge for as additional services," the statement of claim says.

The claim alleges residents were charged for bundled fees such as high teas, menu choices, and alcoholic beverages even if they were on prescribed dietary regimes, received enteral nutrition, or lacked the capacity to make menu selections. Residents who could not operate a television, comprehend audio-visual content, or were unconscious were allegedly charged for Foxtel, newspapers, and wireless internet. Non-ambulatory residents or those confined to bed were charged for bus outings and exercise classes despite being unable to participate.

The class action was filed on behalf of Dianne Strickland, an 82-year-old former resident of Arcare Carnegie in Victoria. The claim alleges Strickland was physically unable to participate in or benefit from exercise classes and bus outings for which she was charged. She was also billed for in-room Wi-Fi, despite having no knowledge of how to use wireless internet technology and not owning a smartphone, tablet, or computer.

Damian Scattini, a partner at the law firm Quinn Emanuel Urquhart & Sullivan representing the applicants, stated it is estimated that about 7,500 residents were affected during the claim period. "That is not an oversight," Scattini said. "That is a systemic failure that caused real financial harm to people who had already placed their trust and wellbeing in Arcare's hands." "We are determined to hold Arcare to account and to recover what these residents are owed," Scattini said.

An Arcare spokesperson stated the company would not comment on the allegations or legal proceedings since the matter is before the court. The spokesperson said, "Arcare remains committed to providing high-quality care and services that support each resident's choice, independence and dignity."