‘Putting businesses on notice’: Watchdog targeting misleading NDIS advertising
The Australian Competition and Consumer Commission (ACCC) is “putting businesses on notice”, saying that it is focusing in on problematic advertising practices which target participants in the National Disability Insurance Scheme.
On Wednesday, the ACCC confirmed that it has been working with the National Disability Insurance Agency (NDIA) and NDIS Quality and Safeguards Commission to identify advertising which may be in breach of the Australian Consumer Law.
“Businesses must not make false representations regarding access to the NDIS, and consumers must be able to rely on statements being made by NDIS providers as being true and accurate,” ACCC deputy chair, Catriona Lowe, said.
“The ACCC is concerned that many businesses continue to advertise goods or services that appear on the list of ineligible supports in a way that suggests NDIS funding can be used to purchase them.
“We are also concerned that many NDIS providers are claiming that certain products or services are ‘NDIS approved’, ‘NDIS funded’ or otherwise NDIS endorsed when this is not the case.”
According to the watchdog, there are no categories of goods or services which are automatically NDIS approved or funded for all NDIS participants.
Examples of concerning advertising that may be false or misleading include the use of the words ‘NDIS approved’, advertising suggesting NDIS funds will cover “all inclusive” holidays, when general costs associated with holidays would not be covered by NDIS funding, and meal delivery services suggesting the cost of meals is covered by the NDIS, when the NDIS does not cover food expenses.
“Whether particular goods and services will be approved or funded under an individual NDIS participant’s plan will depend on the needs and goals identified in their plan,” the ACCC said.
The NDIS also does not provide specific approval or accreditation for any particular goods or services in general.
“When NDIS participants are induced into buying support goods or services that are not claimable under their plans, they can be left with substantial personal debts,” Lowe said.
“These participants may also be experiencing financial hardship or vulnerability and may not have the means to pay for these goods and services.
“The ACCC is actively investigating multiple NDIS providers for contraventions of the Australian Consumer Law and anticipates taking public enforcement action in the near future.
“NDIS providers should be aware that we are closely monitoring and responding to how they advertise their products and services to consumers, and that we will not hesitate to take appropriate enforcement action if we consider advertising is false or misleading.
“All businesses supplying goods and services to NDIS participants should urgently review their advertising and ensure they are acting in compliance with the Australian Consumer Law.”
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