Misleading and Deceptive Conduct
Written in plain language for general understanding. This is educational content, not legal advice. Based on Commonwealth Acts of Parliament, federal regulations, and official government guidance.
Australian Federal Law
What is this right?
Section 18 of the ACL contains one of the broadest consumer protections in Australian law: a business must not engage in conduct that is misleading or deceptive, or is likely to mislead or deceive:
- What it covers: Advertising, product labelling, sales pitches, websites, social media posts, and even silence (failing to disclose important information).
- No intent required: A business does not need to intend to mislead you. If their conduct would mislead a reasonable person, it breaches the law.
- Specific prohibitions (ss 29–37): False claims about quality, price, origin, sponsorship, testimonials, or “was/now” pricing. Bait advertising (advertising a product at a low price without reasonable stock) is also prohibited.
- Penalties: Individuals face fines of up to $2.5 million. Companies face up to $50 million, three times the benefit obtained, or 30% of adjusted turnover (whichever is greatest).
The ACCC actively pursues misleading conduct cases, including against online businesses and social media influencers.
When does it apply?
- A business made a false or misleading claim in connection with the supply of goods or services.
- You relied on the claim and suffered loss or damage as a result (e.g., you bought a product you would not have otherwise purchased).
- Applies to all businesses operating in Australia, including online-only and overseas businesses selling to Australian consumers.
What should you do?
- Gather evidence — save screenshots, advertisements, emails, receipts, and any written claims the business made.
- Contact the business and ask for a remedy (refund, compensation, or correction).
- If the business does not cooperate, report the conduct to the ACCC online at accc.gov.au or call 1300 302 502.
- You may also be able to take private legal action to recover your losses through a court or tribunal.
What should you NOT do?
- Don’t delete evidence — keep all misleading material, even if the business later corrects it.
- Don’t assume “puffery” is always allowed — vague claims like “best ever” may be acceptable, but specific factual claims must be true.
- Don’t assume only big companies are covered — the law applies to sole traders, small businesses, and individuals in trade or commerce.
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