ACCC aims at NDIS ads
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The ACCC is cracking down on dodgy ads targeting vulnerable NDIS participants.
The Australian Competition and Consumer Commission (ACCC) says it has intensified its efforts to address misleading advertising practices targeting participants in the National Disability Insurance Scheme (NDIS).
Working with the National Disability Insurance Agency (NDIA) and the NDIS Quality and Safeguards Commission, the ACCC is investigating businesses that may be in breach of Australian Consumer Law by making false claims about NDIS funding and eligibility.
Recent updates to NDIS guidelines, effective from October, have clarified which goods and services can or cannot be funded through NDIS plans.
Despite this, some providers continue to advertise products and services that are explicitly excluded, suggesting that NDIS funds can be used to cover these costs.
The ACCC says it is particularly concerned about claims that certain goods or services are “NDIS approved” or “NDIS funded”, terms that can mislead consumers.
The NDIS does not approve or endorse any goods or services for all participants. Each funding decision depends on the needs and goals outlined in an individual’s plan.
Misleading advertising could leave participants facing unexpected personal debts, a serious issue given the financial vulnerability of many NDIS users.
The ACCC has also flagged examples of inappropriate advertising, such as promoting holiday expenses, food costs, or recreational activities like movie tickets as eligible for NDIS funding.
Some businesses are also misusing the term “NDIS” in their names or descriptions to imply affiliation or endorsement, which does not exist.
The regulator is currently investigating several providers for potential breaches of consumer law and plans to take public enforcement action soon.
NDIS participants who suspect false or misleading claims are encouraged to report these to the ACCC. Additional resources are available on the ACCC website to help participants understand their rights.
Violations of Australian Consumer Law can attract penalties of up to $50 million or significant fines based on the financial gains from non-compliance.
