What ‘Misleading and Deceptive Conduct’ Really Means for YourBusiness

Misleading and Deceptive Conduct: A Guide for Australian Businesses

When you’re marketing your business, the goal is simple: grab attention, create desire, and convert leads into paying clients. But there’s a legal line that can’t be crossed, and that line is called misleading and deceptive conduct.

This is not just a risk for big corporates. The Australian Consumer Law (ACL) applies to almost every business in Australia, from solo consultants to large-scale e-commerce stores. And the standard is high: it’s not about what you intended to do, but what impression your words, images, and actions actually create in the mind of a reasonable customer.

In this guide, we’ll explain what misleading and deceptive conduct really means, why it matters, the consequences of getting it wrong, and what you can do right now to keep your marketing both persuasive and compliant.

What Does Misleading and Deceptive Conduct Mean?

Misleading and deceptive conduct is one of the most far-reaching provisions of the ACL. In simple terms, it means doing anything - through words, images, actions, or even silence - that is likely to mislead a reasonable person.

This doesn’t just mean outright lying. It can include:

• Half-truths: Giving only part of the information so the overall impression is inaccurate.

• Silence: Failing to mention something that a consumer would expect to know before making a purchase.

• Overstating results: Using testimonials or case studies that suggest guaranteed outcomes.

• Implied claims: Images, graphics or language that create a false sense of urgency or scarcity.

For example, if you run a course and advertise “only 3 spots left” when you actually have unlimited capacity, that statement could be considered misleading, even if you meant it as clever marketing.

Common Problem Areas for Small Businesses

Small businesses often accidentally engage in misleading conduct because they don’t know the rules. Here are some of the most common problem areas:

1. Pricing and Discounting

Listing a “was $499, now $199” price when the higher price was never actually charged is a common breach. The ACL requires that any comparative price claims be genuine and based on a real, recent price history.

2. “No Refunds” Statements

Blanket “no refund” policies often mislead customers into believing they have no rights if something goes wrong. The ACL gives consumers automatic rights to a remedy for faulty goods or services not delivered with due care, regardless of what your contract says.

3. Testimonials and Social Proof

If you use client reviews or before-and-after images, you must ensure they are accurate, not fabricated, and not cherry-picked in a way that gives a false impression of typical results.

4. Silence or Hidden Terms

Failing to disclose significant conditions, fees, or limitations can be misleading. For example, if your coaching program requires participants to buy additional software to get full value, you must say so upfront.

Why This Matters in 2025

The ACCC has made clear that enforcement of the ACL is a priority, and misleading conduct is a particular focus. Businesses of all sizes have been penalised for misleading claims, from large travel booking sites to individual influencers.

Penalties can be significant. For companies, the maximum penalty is the greater of $50 million, three times the value of the benefit obtained, or 30% of adjusted turnover. For individuals, fines can reach $2.5 million per breach.

Even if the ACCC never comes knocking, a breach can damage your reputation. Customers are quick to share negative experiences online, and a single refund dispute can escalate into public complaints, chargebacks, and lost trust.

How to Protect Your Business

The best way to avoid misleading conduct is to make transparency a core part of your business model.

• Audit Your Marketing: Review your website copy, social media posts, ads, and sales funnels regularly. Ask yourself whether each claim is factually accurate and backed by evidence.

• Be Clear Upfront: Disclose key conditions and limitations before a customer purchases, not buried in the fine print after payment.

• Use Genuine Proof: Ensure testimonials, case studies and claims about results are honest, up-to-date and representative.

• Align Legal Documents: Your website terms, disclaimers, and refund policies should reflect your obligations under the ACL.

Final Thoughts

Misleading and deceptive conduct is one of the easiest ways for a small business to accidentally breach the law, but it’s also one of the easiest problems to fix with the right processes in place.

When your marketing and legal documents work together, you not only stay compliant, but you build trust with your customers and protect your reputation.

Next Step: If you haven’t reviewed your website and marketing recently, now is the time. Book a 1:1 strategy call to go through your copy and offers.

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This blog is intended for general information purposes only and does not constitute legal advice. The content is based on Australian law and may not be current at the time you read it. Legal requirements may vary depending on your circumstances. Always seek independent legal advice tailored to your specific situation before acting on any information provided.