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Misleading advertising in Australia is against the law. Under the Australian Consumer Law (ACL), businesses must not engage in conduct that is misleading or deceptive, make false or misleading claims about goods or services, or advertise specials they can’t reasonably supply (bait advertising). It doesn’t matter whether the business meant to mislead: what counts is the overall impression the ad creates. This guide explains the rules in plain English for business owners.
What does the Australian Consumer Law say about advertising?
The Australian Consumer Law is Schedule 2 of the Competition and Consumer Act 2010. The sections most relevant to advertising are:
| Section | What it covers |
|---|---|
| Section 18 | A general ban on misleading or deceptive conduct in trade or commerce |
| Section 29 | False or misleading representations about goods or services, such as price, quality, testimonials, sponsorship or approval |
| Section 35 | Bait advertising: advertising goods or services at a price you can’t supply in reasonable quantities for a reasonable time |
The Australian Competition and Consumer Commission (ACCC) enforces these rules nationally, alongside state and territory consumer protection agencies.
What is false advertising?
False advertising is any ad, post or claim that gives customers a wrong impression about what you’re selling. The ACCC says any information or claim about a product or service must be accurate, truthful and based on reasonable grounds, and that this applies to advertising, packaging, quotes, what staff say, social media, testimonials and websites (ACCC: false or misleading claims).
The overall impression matters, not just the literal words. An ad can be misleading through:
- False statements: claiming a product does something it can’t.
- Misleading images: photos that show something customers won’t get.
- Fine print: conditions hidden in small text that contradict the headline.
- Silence: leaving out important information a customer needs to decide.
- Price claims: “was” prices that weren’t actually charged, or prices that leave out unavoidable fees.
- Fake reviews or testimonials: reviews written by the business or people posing as customers.
Is puffery misleading?
Generally not. The ACCC describes puffery as wildly exaggerated, vague claims no one would take seriously, such as a restaurant claiming the “best steaks on earth”. But a specific, measurable claim (“the fastest broadband in town”) needs evidence.
What is bait advertising?
Bait advertising is promoting a price, often a sale price, on products that aren’t available or are available only in very limited quantities. The ACCC says it isn’t misleading if you’re upfront that stock is limited or the offer is for a limited time. If you advertise a special, make sure you can supply a reasonable amount, or say clearly how many are available.
Is false advertising illegal?
Yes. Misleading or deceptive conduct and false or misleading representations are prohibited under the ACL. The ACCC can require businesses to back up their claims, investigate, and take compliance or enforcement action, including court action.
What are the penalties for misleading advertising?
Only a court can set the penalty in a case. According to the ACCC, for conduct on or after 28 March 2026, the maximum penalty for each breach of provisions such as false or misleading representations is, for a corporation, the greater of $100,000,000, three times the benefit obtained, or 30% of adjusted turnover during the breach period, and for an individual, $2,500,000. The ACCC can also issue infringement notices, which in many cases are $21,840 for a corporation and $4,368 for an individual (ACCC: fines and penalties, checked November 2026).
What are some misleading advertising cases in Australia?
A well-known example from the ACCC: in June 2022, the Federal Court ordered Samsung Electronics Australia to pay $14 million in penalties for misleading water resistance claims about its mobile phones. Its ads showed phones being used in pools and the sea, but pool and sea water could damage the phones’ charging ports. The lesson for any business: images and lifestyle scenes are claims too.
Can a company be sued for false advertising?
Yes. Besides ACCC action, consumers and competitors who suffer loss because of misleading conduct may be able to take legal action for remedies such as damages. Businesses can also be ordered to run corrective advertising. If you’re unsure about a claim, get legal advice before you publish it.
How do you keep your advertising honest?
Based on the ACCC’s guidance, before you publish an ad, post or web page:
- Check every fact and keep evidence for claims about results, performance or comparisons.
- Read it as a customer would: does the overall impression match reality?
- Show the full price, including unavoidable fees, and only use “was” prices you actually charged.
- Keep conditions near the claim, not buried in fine print.
- Use real images of what customers will get, or label illustrations clearly.
- Be careful with testimonials and reviews: use genuine ones, don’t edit their meaning, and disclose any incentive.
- Don’t promise what you can’t control, such as particular rankings, sales or results.
- Update or remove ads when prices, stock or details change.
How do you deal with misleading advertising in Australia?
If a competitor’s ads seem misleading, or a customer says yours are, the ACCC suggests contacting the business first to explain the problem. If that doesn’t resolve it, you can report the conduct to the ACCC or your state or territory consumer protection agency. The ACCC uses reports to guide its work but doesn’t resolve individual disputes or give legal advice.
How we approach honest marketing
We aim to make every campaign, website and ad accurate: prices shown with GST added, claims backed by facts, real photos where possible and no promised results we can’t control. Our copywriting services and Google Ads management follow the same rules, and our marketing partnerships (from $4,500 + GST a month for 28 hours) keep your marketing consistent across channels. We aren’t lawyers, so for legal questions about your own advertising, speak to a lawyer.
Frequently asked questions
Do the rules apply to social media posts?
Yes. The ACCC says the rules apply to any communication by a business, including social media, websites and testimonials. Influencer posts and paid partnerships should be clearly disclosed.
Does it matter if I didn’t mean to mislead?
No. The ACCC says it makes no difference whether a business intends to mislead or not.
Can I compare my business with a competitor?
Yes, if the comparison is accurate, fair and you can back it up. Comparing selectively in a way that creates a false impression can be misleading.
Where can I learn more?
The ACCC publishes a guide to advertising and selling for business, along with pages on online reviews and social media promotions.
The short version
Misleading advertising in Australia breaks the Australian Consumer Law, whether or not you meant it. Make every claim accurate and provable, show full prices, keep conditions clear, don’t bait with specials you can’t supply, and use genuine reviews. When in doubt, get legal advice before you publish.
If you’d like marketing that’s effective and honest, book a free 30-minute discovery call.
