The Australian Consumer Law (contained in the schedule to the Competition and Consumer Act 2010) protects you from false, misleading or deceptive selling practices.
It is unlawful for businesses to make false or misleading representations about goods or services in promotions or advertising.
The law says businesses must not make false or misleading representations about:
the standard, quality, value or grade of goods or services
the composition style, model or previous history or use of goods
whether the goods are new
a particular person agreeing to acquire goods or services
testimonials by any person relating to goods or services
the sponsorship, performance characteristics, accessories, benefits and uses of goods and services
the price of the goods or services
the availability of repair facilities or spare parts for goods
the place of origin of goods (for example, where it was made or assembled)
a buyer's need for the goods or services
any condition, warranty or guarantee on the goods and services
the requirement to pay for a contractual right that a person has under law or any condition, warranty or guarantee on the goods or services.
Examples of false or misleading representations
Whether a representation is considered false or misleading will depend on the circumstances of each case. A representation that misleads one group of consumers may not necessarily mislead another group.
Some examples of false or misleading representations include:
a jewellery store promoting that a watch 'was' $200 and is 'now' $100 when the store never sold the watch for $200
a manufacturer selling socks labelled as ‘pure cotton’ when the socks were not pure cotton,
a mechanic advising that more repair work is needed on a car than was necessary
a company misrepresenting the possible profits of a work-at-home scheme, or other business opportunity
Representations about the sale or interest in land
A business must not make false or misleading representations about the sale or grant of an interest in land.
For instance, a business must not make false or misleading representations about the:
nature of the interest in the land
price, location, characteristics or use that can be made of the land
availability of facilities associated with the land.
For example, a real estate agent would be misrepresenting the characteristics of a property if advertising 'beachfront lots' that did not front the beach.
It is also unlawful for the person making the claims about the land to represent that he or she has a sponsorship, approval or affiliation when this is not the case.
Representations about employment
It is unlawful for businesses to make representations that could mislead persons seeking employment about the availability, nature or terms and conditions of employment or any other matters relating to the employment.
Representations about price
The price of a good or service is often a good indication of its quality or its availability. Price comparisons can also give you an indication of whether you are getting a good deal or a bargain.
There are also special laws relevant to price advertising and promotions. A business risks breaching the law if it:
makes inaccurate or misleading price comparisons (for example 'was' and 'now' prices)
represents that an advertised price is the total price that you will have to pay when it is not
advertises products at a specific price when it does not have a reasonable supply for consumers to purchase. This is called bait advertising.
See our page on misleading pricing for more information about bait advertising and misleading claims about prices.
Need help?
If you think that you have been misled, contact the trader first – see the ACCC's how to complain page for guidance.
If you are unable to resolve your complaint with the trader, you can contact the ACCC or your local consumer protection agency for more information on your consumer rights and options. Your local consumer protection agency may also offer conciliation services to help you resolve your complaint with the seller.
If your problem relates to financial services, contact the Australian Securities and Investment Commission, the regulator for financial products and services. You can also visit ASIC's consumer website, MoneySmart, for tips and guidance about managing your money.
