Avoid misleading customers about products or services

Consumers have the right to expect your business won't mislead or deceive them. Your advertising should never lead a customer to believe something that's not true about the value, capability or quality of your goods or services.

You could be breaking the law if you give customers a false or misleading impression about:

  • price and usual value
  • standard, quality or grade
  • age and history
  • country of origin
  • what the product is made of and the model
  • any included accessories
  • how the goods or services work
  • any benefits they offer
  • how much the customer needs the product or service (including whether it's legally required)
  • whether it's approved for use
  • whether repair facilities or spare parts are available
  • any guarantees, warranties or conditions you make.

You must also be honest about any testimonials, affiliations or approvals and sponsored endorsements.

Types of misleading or deceptive conduct

It's illegal to mislead consumers when advertising goods and services.

It's possible to mislead or deceive without intending to—it's your actions and statements that matter, not your intentions. Beware of these traps.

Penalties for misleading conduct

The maximum penalties for false or misleading conduct are $100 million for a corporation and $2.5 million for an individual.

Exaggeration in advertising

Some advertisements make claims that are clearly over the top. They may use wildly exaggerated, fanciful or vague statements or images. This is called 'puffery' and businesses are allowed to advertise this way.

There is no legal distinction between puffery and misleading or deceptive conduct. A court would need to decide if a reasonable person would believe that conduct is misleading.

For example, someone sees an advertisement for a deodorant showing users becoming more attractive and desirable. They buy the deodorant but notice no change in themself. In court, the deodorant business successfully argues that the claims were so fanciful the person was unreasonable for taking them seriously.

Offensive advertising

Contact Ad Standards if you think an advertisement is offensive because it:

  • discriminates against somebody's race, nationality, sex, age, sexual preference, religion, disability or political beliefs
  • shows strong violence
  • uses strong or coarse language
  • portrays sex, sexuality or nudity
  • demonstrates poor health or safety
  • may cause alarm or distress to children.

More information

Office of Fair Trading

Go back to Office of Fair Trading home.

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