The Australian Competition and Consumer Commission (ACCC) has issued a clear warning to NDIS providers - misleading advertising will not be tolerated.
In November 2024, the ACCC issued a warning to NDIS providers that it would be focusing on advertising practices that target NDIS participants. A copy of the warning can be found here. Since then, the ACCC has issued infringement notices to NDIS providers for making false and misleading claims when advertising to NDIS participants.Two recent cases, Bedshed and Thermomix, are examples of circumstances where the ACCC may issue an infringement notice for making false or misleading claims about products being endorsed or approved by the National Disability Insurance Scheme. In both cases, the company paid a penalty.
What Types of Claims Are Considered Misleading?
The ACCC has provided several examples of advertising that may breach consumer law, including:
Using the words “NDIS approved” as the NDIS does not approve or endorse specific goods or services.
Suggesting NDIS funds will cover “all inclusive” holidays, as general costs associated with holidays would not be covered by NDIS funding.
Suggesting that the cost of meals delivered by a meal delivery service could be covered by the NDIS, when the NDIS does not cover food expenses.
Advertising that provides instructions on how to use NDIS funding codes to cover the costs of recreational services that are not covered by the NDIS, for example, going to the movies or a theme park.
Implying any endorsement or affiliation with the NDIS, including using “NDIS” in a business name or when describing services, for example as “NDIS therapies”.
While these examples are helpful in highlighting the types of advertising that might breach consumer law, this should not be considered an exhaustive list. It is important to audit your own advertising and marketing activities and satisfy yourself that no express or implied messaging could amount to misleading and deceptive conduct. If you are unsure it is important to seek legal advice.
What Should You Do?
To avoid breaching Australian Consumer Law, we recommend taking the following steps:
Review all advertising materials: this includes your website, social media content, printed brochures, email campaigns, and any third-party listings.
Remove any misleading statements: if you identify any language that could be interpreted as false or misleading, remove or amend it immediately.
Seek legal advice: if you're uncertain about whether a particular claim crosses the line, it’s best to get tailored legal guidance.
Need Help?
Our team specialises in regulatory compliance for NDIS providers and businesses operating in the disability sector. We can help you review your advertising materials and ensure you're meeting your obligations under consumer law. To find out more about how we can help, contact us today at info@kinnylegal.com or 02 9199 4563.
This blog post does not constitute legal advice and should not be relied upon as such. It is a general commentary on matters that may be of interest to you. Formal legal or other professional advice should be sought before acting or relying on any matter arising from this communication.
Subscribe
Sign up with your email address to receive news and updates.