NDIS Misleading Advertising and False Claims

Working with the NDIA and the NDIS Quality and Safeguards Commission, the ACCC is identifying ads that may breach Australian Consumer Law:

“Businesses must not make false claims about NDIS access. Consumers should trust that NDIS providers’ statements are accurate,” said ACCC Deputy Chair Catriona Lowe.

Not sure about the changes?

Changes to the NDIS from 3 October 2024 clarify what supports can be funded. Details are on the NDIS website.

Avoid False Claims

The ACCC is concerned some businesses still advertise ineligible goods or services as NDIS-funded. Some providers falsely claim their products are ‘NDIS approved’ or ‘NDIS funded.’

No goods or services are automatically approved for all NDIS participants. Approval depends on individual plans. The NDIS does not endorse specific goods or services.

Misleading participants into buying non-claimable items can lead to significant personal debts, especially for those already financially vulnerable.

The ACCC is investigating several NDIS providers for potential breaches of the law and expects to take action soon.

NDIS providers should ensure their advertising is accurate. The ACCC will act against false or misleading claims.

Misleading Advertising Examples:

  • Using terms like ‘NDIS approved,’ which the NDIS does not endorse.

  • Suggesting NDIS funds cover “all-inclusive” holidays, which they do not.

  • Claiming meal delivery costs are covered by the NDIS, which does not cover food expenses.

  • Providing instructions to use NDIS funding for recreational services not covered by the NDIS, like movies or theme parks.

  • Implying affiliation with the NDIS by using ‘NDIS’ in business names or service descriptions.

Penalties
The maximum penalty for breaching Australian Consumer Law is the greater of $50,000,000, three times the value of the benefit obtained, or 30% of the corporation’s adjusted turnover during the breach period.

General Enquiries or Report an Issue:

For general inquiries or to report an issue, contact the ACCC.

 

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