Avoiding Misleading Claims in Your Online Advertising
Online ads move fast. A headline gets written, an image goes on and the campaign is live within the hour. That speed is useful, but it also makes it easy to publish a claim you cannot back up. In Australia, that can become a legal problem.
The Australian Consumer Law sets the rules for what businesses can say when they advertise. The Australian Competition and Consumer Commission, known as the ACCC, enforces it at a national level. This guide explains the main points in plain language for anyone writing ads, landing pages or social posts.
The basic rule for every claim
The ACCC says business claims must be accurate, truthful and based on reasonable grounds. You also need to be able to prove them. Your intent makes no difference. If an ad creates a false impression, it can still break the law.
The rule covers every channel. That includes websites, social media, packaging, quotes, testimonials and what staff say to customers. A promoted post is treated the same as a print ad. So is the copy on your product page.
The test looks at the overall impression of the ad. A statement can be technically true and still mislead if the whole message points somewhere else. Read your ad the way a busy customer would. If the quick takeaway is wrong, the ad needs work.
Fine print and “conditions apply”
Fine print is allowed, but it cannot contradict the main message. The ACCC guidance on false or misleading claims gives two examples. One is a “free” offer where an extra payment is only mentioned in small type. The other is a “storewide” discount with exclusions hidden at the bottom.
The fix is simple. Put any important condition near the claim it affects. If the offer has a minimum spend, say so in the headline area. If certain products are left out, name them clearly.
Space is tight in digital ads, so this takes some planning. A short headline can link to a landing page, but that page should repeat the conditions plainly. The customer should not need to hunt for them. Keeping the offer simple is often the easiest path.
Price and discount claims
The ACCC says businesses need to take extra care with prices. A price that leaves out GST or other costs can mislead. So can a “sale” price that never ends. A sale should be a real, temporary reduction.
Savings claims need the same care. An ad that says “was $275, now $149” may mislead if the product was never really sold at the higher price. It may also mislead if it was only sold at that price in small amounts just before the sale. Keep records of your past prices so you can show the comparison is genuine.
This applies to email campaigns too. A run of “last chance” emails can create pressure that is not real. If you send offers often, our article on how often to email your subscribers is worth a read. Fewer, honest offers tend to keep a list healthier.
Comparisons, stock and delivery promises
Comparing your offer with a competitor’s is common in advertising. It can mislead, however, if the comparison of price, quality or range is inaccurate or unfair. Compare like with like and keep evidence of the figures you use. Check the comparison again before an old ad runs for another season.
Ads for products in short supply need care as well. The ACCC says promoting limited stock is not misleading if you are clear about the short supply or the time limit. Problems arise when an ad suggests plenty of stock that does not exist. Be upfront about quantities and dates.
Delivery times are another common issue. The ACCC lists stock levels and delivery timeframes among the things a business must not falsely claim. Promise only what you can usually deliver. If times change, update your website and ads quickly.
Claims about quality, benefits and results
Claims about quality or benefits must be backed by evidence. The ACCC names safety, ethical, nutritional, environmental and therapeutic claims as examples. Vague wording can also fall short. The guidance says a phrase such as “against animal testing” may not tell customers what they need to know.
Predictions about the future need reasonable grounds at the time you make them. A claim that a product will save money or deliver a certain result counts. You carry the burden of showing those grounds. Explain any variables that could change the outcome.
Obvious exaggeration is treated differently. Claims that no one could take seriously, such as “best steaks on earth”, are generally not seen as misleading. This is often called puffery. The line can be fine, so keep specific claims factual.
Video ads and influencer content
Video makes claims too, through what it shows as well as what it says. The ACCC page describes a case where the Federal Court ordered Samsung Electronics Australia to pay $14 million in penalties in June 2022. The ads showed phones in pools and the sea, yet that water could damage the charging port. Visuals need the same checking as words.
Short clips are now a big part of many campaigns. Our look at short form video content explains why. Before a clip goes live, ask what a viewer would believe after watching it. If that belief is not true, change the footage or add clear context.
Building a simple approval habit
A short review step catches most problems before they go live. The ACCC’s good practice tips include using plain language and being specific. It also suggests backing claims with evidence and noting any limits. Updating customers when things change is part of the list as well.
- Can you prove every factual claim in the ad today?
- Do the headline and the fine print say the same thing?
- Does the price include GST and any fixed extra costs?
- Is any “was” price a genuine past price with records?
- Do the images and video show the product as it really performs?
Keep a folder of evidence for each campaign. It might hold test results, past price records or supplier details. If the ACCC asks you to back up a claim, you will have it ready. New business owners can find more setup advice in our guide to starting an online business.
Shared campaigns need clear sign off. If you run ads with another business, agree in writing who checks the claims. The same goes for freelancers or contractors who work on your ads. Our article on joint ventures for web designers covers some of the legal options for working with partners.
Frequently asked questions
Does the Australian Consumer Law apply to social media posts?
Yes. The ACCC says the rules cover social media, websites, ads and testimonials. A post that promotes your business is treated as advertising.
Can I use the word “free” in an ad?
Yes, if the offer is genuinely free. A “free” offer with hidden costs or conditions in the fine print can be misleading. Put any condition right next to the word.
What if I did not mean to mislead anyone?
Intent does not matter under the law. What counts is the impression the ad creates. That is why checking claims before launch is so useful.
Will the ACCC sort out my dispute with a customer?
No. The ACCC does not resolve individual disputes or give legal advice. It can investigate and take enforcement action against businesses.
This article is general information only and is not legal advice. The law and how regulators apply it can change. Please speak with a qualified lawyer about your own advertising.
