Misleading and Deceptive Conduct Explained

The Australian Consumer Law contains provisions designed to promote fair trading and protect consumers.

One of the most important is the prohibition against misleading or deceptive conduct.

What Is Misleading or Deceptive Conduct?

Misleading or deceptive conduct occurs when a business makes statements or representations that create a false impression.

Importantly, the conduct does not need to be intentional.

Even statements made in good faith may be considered misleading if they lead consumers to the wrong conclusion.

Common Examples

Examples may include:

• Advertising claims that exaggerate product benefits
• Statements about pricing that omit important conditions
• Representations about product origin or quality

Businesses should ensure that marketing materials accurately reflect the goods or services offered.

Regulatory Enforcement

Regulators may take action where misleading conduct occurs, which can lead to penalties and reputational damage.

Businesses may benefit from understanding their obligations under consumer law.

Get clear, practical guidance on consumer law obligations with Clearscope Legal’s commercial law services.

Final Thoughts

Ensuring marketing and communications are accurate and transparent can help businesses maintain compliance with consumer law obligations.