Slip 5 · The Australian Consumer Law
Honest claims in ads
Any claim a business makes about its products or services must be truthful and accurate, with reasonable grounds behind it, and it makes no difference whether the business meant to mislead. Fake or misleading reviews are against the law too, whether a business writes them or arranges for others to.
General information, not legal advice. The ACCC enforces the Australian Consumer Law; its pages on false or misleading claims and online reviews are the places to check.
Where the rule reaches
The ACCC says the rule applies to any communication by a business. Read for a lead campaign, that takes in the ad, the landing page and what the person is told afterwards. The ACCC’s own list:
- Advertising
- Packaging
- A quotation
- What staff say or write
- Social media
- Testimonials
- Websites
It covers information on prices, images and descriptions, claims about value, benefits, quality or performance, and shipping and delivery times. Any statement that creates a false impression can be breaking the law.
Claims that commonly go wrong
| The kind of claim | What the ACCC says |
|---|---|
| Something offered “free” | An ad that says “free” while the fine print mentions an extra payment is likely to be misleading. Fine print must not conflict with the overall message of the ad. |
| A sale price, or “was / now” | A “was” price may mislead if the product was never sold at the higher price, or sold at it only in a limited amount just before the sale. |
| “Storewide” or “all products” | Exclusions tucked into the fine print may also be misleading. |
| A comparison with others | Misleading if the comparison is inaccurate or does not compare products fairly. |
| A prediction or projection | The business must have reasonable grounds when it makes the claim, and is responsible for showing that it did. |
| Saying nothing | Leaving out important details a person needs for their decision can be misleading in some circumstances. |
| Wild exaggeration | Vague, wildly exaggerated claims no one could take seriously, such as the “best steaks on earth”, are generally not considered misleading. |
The prediction row is the one this guide would flag for anyone selling a lead service, since promises about results are claims about the future. The ACCC also lists, among things a business shouldn’t do, making promises it can’t keep or predictions without solid evidence.
What the ACCC says a business should do
- Give current and correct information, in language that is easy to understand
- Check that the overall impression is accurate
- Be specific, and back claims up with facts and evidence
- Note important limitations or exemptions
- Be prepared to prove claims
Reviews and testimonials
Under the Australian Consumer Law, it is illegal to create or arrange for a fake or misleading review. The ACCC describes several ways reviews can mislead:
- Reviews by family, employees or people paid in some way, without stating the connection
- Reviews by someone who has not used the product or service
- Reviews edited or changed by someone else after they were written
- Suppressing, editing or removing genuine negative reviews
- Not disclosing commercial relationships with a review platform that may affect what appears
business.gov.au says it is fine to ask customers for a review, after checking the review site’s rules and the law, and that an incentive is acceptable if it is offered for positive and negative reviews alike and clearly disclosed. The ACCC adds that businesses should show the context a reader needs, such as how many reviews a star rating is based on, and should have an adequate basis before removing a review they believe is fake.