In Australia, the central advertising rule is that you must not mislead or deceive customers, whether through what you say, what you show or what you leave out. The ACCC, which enforces the Australian Consumer Law (ACL), says intent is irrelevant and that you must be able to back up your claims. This article is general information, not legal advice. For a specific campaign, especially in a regulated industry, speak to a lawyer.
The core principle: accuracy, not intent
The ACCC states that it makes no difference whether a business intends to mislead. Information about prices, product images, benefits, performance and delivery must be truthful and based on reasonable grounds. Leaving out relevant detail can mislead even when everything you said is true. And claims must be substantiated: for predictions, you need reasonable grounds at the time you make the claim and must be able to show them (ACCC).
The ACCC also notes that obvious exaggeration, the kind no one would take literally, is generally acceptable. A cafe calling its coffee “the best in town” is different from a supplement promising a measured health result.
Where businesses get into trouble
The ACCC lists common problem areas, including:
- Price claims such as “free” offers with hidden conditions, misleading sale prices, or prices that exclude GST.
- Fine print that contradicts the headline message.
- Inaccurate or unfair comparisons with competitors.
- Bait advertising for products that are unavailable or in very limited supply.
- Premium claims about safety, ethics, nutrition, environment or origin that are not specific and provable.
A pre-publication checklist
- Can I prove each factual claim with documents today?
- Does the headline still hold once the fine print is read?
- Is any condition (dates, exclusions, quantities) shown as prominently as the offer?
- Would the image mislead about size, colour, performance or what is included?
- Have I avoided absolutes I cannot support, such as “guaranteed” or “proven”?
- Is the price shown the real price a customer will pay?
Prices: show one total
The ACCC says businesses must show clear and accurate prices and must not mislead consumers about them. It expects a single total price covering the lowest amount a customer could pay, including taxes, duties and any unavoidable or pre-selected fees. If you show a part price, such as a weekly instalment, the total must be just as prominent. It also describes drip pricing, where extra fees are added during checkout after an initial price is advertised, and advises that fees be disclosed at the start. If you display different prices for the same item, even by mistake, the ACCC says you must sell at the lowest price or stop selling until corrected (ACCC).
Prices shown only to other businesses do not need to include GST, according to the same page. Check the page for your own situation. For overseas customers, see pricing for international markets.
Reviews and testimonials
The ACCC’s guidance for businesses says that it is against the law to create fake or misleading reviews or to arrange for others to do so. Reviews by family, employees or people you pay are misleading unless the connection is disclosed. Suppressing, editing or removing genuine negative reviews can mislead, and you should remove or edit a review only when you have a reasonable basis to believe it is fake. Incentives for reviews must be offered whether the review is positive or negative, and the incentive disclosed. It also recommends showing the total number of reviews behind a star rating (ACCC).
In practice: publish a review policy, respond to criticism publicly, and never write your own five-star reviews.
Social media and influencers
The ACCC says consumer law covers your own posts, paid advertising, and posts by influencers you pay or incentivise. You are also responsible for false or likely misleading comments and posts others make on your pages, including reviews. It advises setting clear posting rules, blocking users who break them, and checking pages regularly (ACCC).
For AI-generated or heavily edited imagery, the same accuracy principle applies to what the picture implies. See disclosing AI in advertising for the wider trust and platform questions.
Putting it into your process
- Keep a claims register: each claim, its evidence and the date checked.
- Have one person review ads against that register before launch.
- Re-check pricing and availability whenever a promotion runs longer than planned.
- Brief agencies and influencers in writing on what they can and cannot claim.
This fits within a wider plan, see how to build a digital marketing strategy and organic social versus paid advertising.
Where Radiance Impact fits
Radiance Impact’s Growth & Marketing division works on campaigns and strategy, and can help you build a clearer process for substantiating claims in your creative. It does not give legal advice. To discuss a campaign, see /growth or contact us at /contact.
Sources
- False or misleading claims, ACCC
- Displaying prices, ACCC
- Online reviews for product and services, ACCC
- Social media promotions, ACCC
