Retailer Bedshed has been fined for falsely claiming certain products were approved by the National Disability Insurance Scheme (NDIS).
ACCC Chair Gina Cass-Gottlieb said the bedding franchise paid $39,600 in penalties after being issued with two infringement notices for “allegedly making false or misleading representations to consumers through advertising that suggested certain products it sold had been evaluated or approved by NDIS”.
Ms Cass-Gottlieb said the ACCC alleged that Bedshed advertised on its website and Google Ads that some of its mattresses, furniture and bedding accessories were “NDIS approved” and “NDIS permitted”.
“The NDIS does not approve any specific goods or services and to suggest otherwise is misleading and risks taking advantage of vulnerable consumers,” she said.
“Each NDIS participant has unique needs, and what’s funded under their plan is determined individually, not through a list of approved products.”
Ms Cass Gottlieb said targeting consumers experiencing vulnerability or disadvantage with misleading advertising was particularly concerning.
“We are continuing to investigate companies making similar claims.”
She said examples of concerning advertising that may be false, or misleading included:
- The use of the words “NDIS approved” as the NDIS did not have the function of approving or endorsing particular goods or services.
- Advertising suggesting NDIS funds would cover “all inclusive” holidays, when general costs associated with holidays would not be covered by NDIS funding.
- Meal delivery services suggesting the cost of meals were covered by the NDIS, when the NDIS did not cover food expenses.
- Advertising that provides instructions on how to use NDIS funding codes to cover costs of recreational services that were not covered by the NDIS – for example, going to the movies or a theme park.
- Advertising that suggested a business was affiliated or endorsed by the NDIS, by using NDIS in its business name or in the description of its services, for example “NDIS therapies”.
