NDIS providers face regulator crackdown on misleading advertising

NDIS providers have been put on notice: the Australian Competition and Consumer Commission (ACCC) is on the lookout for misleading advertisements in this sector.

What’s the background?

This is the latest move in a crackdown on dodgy Australian Consumer Law (ACL) practices in the NDIS sector.

• This is an ACCC priority, with ACL compliance for NDIS providers being listed on the ACCC’s compliance and enforcement priorities for 2024/25. ?
• The NDIS taskforce targeting pricing and consumer complaints received 2,800 reports since being established in December 2023. Businesses have since been referred to the ACCC for potential misconduct under the ACL, with the ACCC investigating multiple providers and anticipating enforcement action soon.

What does this mean for me as an NDIS provider?

Among other things, the ACCC is taking aim at NDIS providers who suggest that certain products or services are “NDIS approved”, “NDIS funded” or otherwise endorsed by the NDIS.? The wording is crucial. While businesses can apply to become a registered NDIS provider, the NDIS does not approve or endorse any products or services and doesn’t engage in affiliations or endorsements with businesses themselves.

Other conduct to look out for are advertisements that:

• promote items which are no longer funded by the NDIS following changes to the NDIS Act from October; ?
• suggest the NDIS will cover things like ‘all inclusive’ holidays or meal delivery services when they are not covered; or ?
• are misleading about pricing, particularly where pricing is different for NDIS participants compared to people not on the NDIS (a current focus for the NDIS taskforce).

Ultimately, making sure that your advertisements aren’t misleading will depend on the overall impression created to the target audience, being participants in the NDIS (who may also be experiencing financial hardship or vulnerability). The answer will always depend on the specific characteristics of the advertisement and how it’s received. ?And the stakes are high, with maximum penalties for false or misleading representations starting from $50 million.

NDIS providers support people with disabilities to live enriching, fulfilling lives. But it is important to be aware of what you can and can’t do when advertising, as the space is highly regulated, with regular changes to NDIS legislation and a new focus on consumer law compliance in the industry.

Questions? Give us a call.