Misleading and Deceptive Conduct in New South Wales
Reviewed by the Commoner Law Editorial Team. Sourced from Commonwealth Acts of Parliament, federal regulations, and official government guidance. State-level information reflects each state's own Acts and court decisions. Written in plain language for general understanding — this is educational content, not legal advice. Our editorial standards
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 to Do If an Australian Business Misled or Deceived You
- 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.
How New South Wales differs from federal law
The prohibition on misleading or deceptive conduct under section 18 of the ACL is enforced in NSW by both NSW Fair Trading and the ACCC. It is the most commonly litigated consumer protection provision in Australia.
- A business must not engage in conduct that is misleading or deceptive, or is likely to mislead or deceive. This covers advertising, sales practices, product labelling, online representations, and silence (failing to disclose important information).
- NSW Fair Trading regularly takes enforcement action against misleading conduct, particularly in real estate, motor vehicles, health products, and online retail.
- In NSW, misleading conduct claims can be brought in NCAT (for smaller claims), the NSW Supreme Court, or the Federal Court. Remedies include injunctions, compensation, and orders to correct misleading conduct.
- The ACL also prohibits specific forms of misleading conduct including false representations about goods and services (s 29), bait advertising (s 35), and testimonials by persons who do not hold the claimed views (s 34).
Additional Steps in New South Wales
Report misleading conduct to NSW Fair Trading (13 32 20) or the ACCC (accc.gov.au). Keep evidence including screenshots, receipts, and correspondence. For personal losses, seek legal advice about lodging a claim in NCAT or court. NSW community legal centres provide free consumer law advice.
Relevant Law: Australian Consumer Law (Cth), ss 18, 29-37; Fair Trading Act 1987 (NSW); Competition and Consumer Act 2010 (Cth), s 137
Common Questions
When does misleading and deceptive conduct 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 I do if a business in Australia made false or misleading claims that caused me loss?
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 mistakes should I avoid with misleading and deceptive conduct?
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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