In Australia, one misleading ad could cost your business millions – as well as your brand’s reputation.
Whether you’re launching a new campaign, working with influencers, or running a seasonal promotion, every claim, image and testimonial must comply with strict advertising laws.
This article, by our marketing and advertising law team, outlines the legislative framework, recent enforcement trends and practical steps your marketing team can take today to keep campaigns on the right side of the law.
Key Takeaways
Misleading ads can trigger massive fines and damage your brand
Substantiate all claims – especially price, health, and environmental statements
Disclose influencer and sponsored content clearly (#ad, etc.)
Monitor and remove misleading social media comments quickly
Pre-launch legal reviews and staff training are essential safeguards
Why Legal Compliance in Advertising Matters
Australian regulators are cracking down on:
False claims about pricing or product benefits (such as through comparative advertising)
Greenwashing and sustainability exaggerations
Misleading influencer content
Non-transparent promotional tactics
Failure to comply doesn’t just risk penalties, it damages trust with your audience.
What Laws Apply to Australian Advertising?
Here’s a breakdown of the key laws and codes businesses and marketers must follow:
1. Australian Consumer Law (ACL)
Under the ACL (Schedule 2 of the Competition and Consumer Act 2010), your advertising must not be misleading or deceptive, or likely to mislead. This includes:
False price comparisons or “was/now” pricing
Misstatements about performance, origin, or quality
Bait advertising (where goods are advertised at a low price but aren’t actually available)
Remember: Maximum civil penalties can exceed $50 million – or 30% of annual turnover.
Learn whether the ACL applies to your online business in our article.
2. Industry-Specific Laws and Codes
AANA Codes (Self-Regulatory but Influential)
Although self-regulatory, the AANA Codes are influential and breaches often trigger ACCC or state fair-trading scrutiny:
Environmental Claims Code
Food & Beverage Marketing Code
ASIC Act 2001 – Financial Products
Applies to businesses advertising credit, insurance, superannuation, or investments. Claims must be clear, accurate, and not misleading.
Therapeutic Goods Act 1989 – Health & Wellness Claims
Applies to any advertising of vitamins, supplements, or skincare products with therapeutic claims. The TGA regulates approvals and enforces strict penalties.
Privacy Act 1988 (Cth) & Spam Act 2003 (Cth)
Applies to email, SMS and online direct marketing. You must:
Get express consent
Provide a working unsubscribe option
Follow the Australian Privacy Principles on personal data use
Learn more about the Spam Act in our article
Recent Enforcement Trends
Here are some recent cases that show where regulators are focusing their efforts:
Year | Regulator | Matter | Penalty / Outcome | Key Lesson |
2024 | ACCC | Greenwashing claims by energy retailer | $39 million civil penalty | Substantiate environmental claims with verifiable data |
2023 | ACCC | Kogan “tax time” discounts | $350,000 penalty + undertakings | Discount pricing must use genuine ‘was’ prices |
2023 | ASIC | Buy-now-pay-later advertising | $2.2 million infringement notices | Credit promotions must disclose fees and interest clearly |
2022 | TGA | Influencer promotion of prescription-only dermal fillers | 24 infringement notices totalling $1.9 million | Social influencers are “advertisers” under the Act |
Practical Advertising Compliance Checklist
Use this checklist to reduce risk before launching any new campaign:
- Map every campaign against relevant statutes and industry codes
- Collect objective evidence to substantiate for all claims, especially price, performance, health, or green claims before launch
- Ensure headline price claims include all unavoidable fees and charges
- Use a short form disclaimer in the ad and a longer form on the landing page (no reliance disclaimer)
- Keep a version-controlled approvals register signed by marketing and legal teams
- Monitor comments on your social media posts and remove misleading third-party statements within 24 hours
- Train marketing staff annually on ACL, Spam Act and privacy basics
- Maintain an incident response plan for regulator queries
Common Advertising Pitfalls
Environmental (“Greenwashing”) Claims
Avoid generic phrases like “eco-friendly” or “sustainable” unless they’re backed by objective, verifiable data – and clearly qualified.
Two-Price Advertising (e.g. Was $199, Now $149)
The “was” price must have been genuinely offered for a reasonable period, or you risk misleading conduct allegations.
Influencer & Native Advertising
Disclose paid partnerships clearly with tags like #ad or Paid Partnership. If followers can’t tell it’s an ad at first glance, it’s likely to be a problem.
Health or Performance Claims
Have proper evidence (such as clinical studies or test data) before promoting any health or product effectiveness claims.
Real-World Cases: Where Advertising Claims Go Wrong
Trivago
In April 2022, the Federal Court ordered Trivago to pay $44.7 million in penalties for misleading consumers by promoting hotel room rates that were not the cheapest available. Trivago’s algorithm favoured advertisers who paid higher fees, leading to deceptive representations about the best deals.
Clorox Australia
In April 2025, Clorox Australia Pty Ltd was ordered to pay $8.25 million for falsely advertising that certain GLAD kitchen and garbage bags were made from recycled ‘ocean plastic.’ The court found these representations misleading to consumers.
Frequently Asked Questions
What is considered misleading advertising under the Australian Consumer Law?
Any representation – written, spoken or visual – that creates a false impression about a product’s price, quality, origin or benefits
How much evidence do I need to substantiate a claim in an advert?
Sufficient objective data (studies, test results or empirical evidence) to satisfy a reasonable consumer that the claim is accurate
Are influencers liable for misleading statements they post?
Yes, influencers and the brand they promote can both be held liable for contraventions of the ACL
Can I legally use “was/now” pricing if the higher price was charged for only one day?
No, the previous price must have been offered for a reasonable period to avoid being misleading
Does the Spam Act apply to LinkedIn direct messages?
Yes, if the message is commercial in nature and sent electronically it must comply with consent and unsubscribe requirements under the Spam Act 2003
