Misleading advertising targeting National Disability Insurance Scheme (NDIS) participants has prompted a warning from the Australian Competition and Consumer Commission (ACCC).
ACCC Deputy Chair Catriona Lowe said the organisation was working with the National Disability Insurance Agency and NDIS Quality and Safeguards Commission to identify advertising which may be in breach of the Australian Consumer Law.
Ms Lowe said misleading practices uncovered included advertising which suggested NDIS funds would cover “all inclusive” holidays, when general costs associated with holidays would not be covered by NDIS funding.
“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,” she said.
Ms Lowe said changes to the NDIS clarifying the supports NDIS participants could spend their funding on came into effect on October 3.
“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.”
She said there were no categories of goods or services which were automatically NDIS approved or funded for all NDIS participants.
Ms Lowe said other examples of concerning advertising included:
- Meal delivery services suggesting the cost of meals is covered by the NDIS, when the NDIS does not cover food expenses.
- Advertising that provides instructions on how to use NDIS funding codes to cover costs of recreational services that are not covered by the NDIS – for example, going to the movies or a theme park.
- Advertising that suggests a business is affiliated or endorsed by the NDIS, by using NDIS in its business name or in the description of its services, for example ‘NDIS therapies’.
She said if an NDIS participant believed a business had made false or misleading statements about products or services, including whether they were funded by the NDIS, they could make a report to the ACCC.
Goods and services that can and cannot be claimed can be found at the NDIS website.
