Misleading Consumer Claims in Western Australia: A Practical ACL Guide for Businesses

Incorrect warranty wording, discount claims and statements about customer rights can mislead consumers and expose WA businesses to Australian Consumer Law action.

The Australian Consumer Law (ACL) applies in Western Australia and sets minimum standards for businesses selling goods and services. Businesses can face regulatory action when advertising, warranty documents, refund policies or staff statements create a false impression about a customer’s legal rights.[S1]

The risk is not limited to deliberately false statements. A claim can be misleading if its overall impression is inaccurate, even where individual words are technically defensible. The safest approach is to test every customer-facing statement from the perspective of an ordinary consumer and correct anything that could create confusion.

Consumer guarantees come first

Businesses must meet automatic consumer guarantees when they sell products or services. Depending on the circumstances, a customer may be entitled to a repair, replacement, refund, cancellation or compensation when a guarantee is not met.[S1]

For goods, guarantees can include acceptable quality, fitness for a stated purpose and correspondence with description. Services must generally be provided with reasonable care and skill, be fit for a stated purpose and be supplied within a reasonable time where no time has been agreed.[S1]

A business cannot avoid these obligations by calling a sale “final”, directing customers only to the manufacturer, or imposing a short deadline that wrongly suggests the customer’s statutory rights have expired. Consumer rights cannot be taken away by a business’s wording or conduct.[S1]

Check warranty wording carefully

A warranty is an additional promise about a product, service or the way a problem will be handled. Once given, the warranty becomes a legal right and the business must honour it.[S1]

Warranty wording should therefore be specific, operational and consistent with the ACL. Avoid statements such as “this warranty replaces all other rights”, “claims must be made within 72 hours” or “refunds are never available” unless the wording accurately describes a lawful limitation that applies to the particular situation. A warranty cannot replace, change or remove consumer guarantees.[S1]

Businesses should distinguish clearly between:

• Consumer guarantees: automatic legal rights that apply to qualifying purchases.
• Manufacturer or store warranties: additional promises made voluntarily by a business or manufacturer.
• Commercial policies: internal processes that cannot reduce a customer’s legal rights.

Train frontline staff to use the same distinction. A well-drafted website policy will not protect a business if employees later tell customers that no remedy is available.

Discount and pricing claims must be genuine

Businesses may set prices and offer discounts, but advertising and pricing claims must be clear, accurate and truthful.[S2]

A “was/now” claim can mislead if the higher reference price was not a genuine selling price, was used only briefly, or was inflated before the discount. Similar risks arise with claims such as “half price”, “lowest price”, “always on sale”, “closing down”, “limited time” and “buy one, get one free”. The conditions and limitations should be prominent enough for consumers to understand the real offer before buying.[S2]

Before publishing a promotion, keep records showing:

• the reference price and when it was charged;
• the number and duration of sales at that price;
• stock availability and any exclusions;
• the start and end of the promotion;
• whether the offer is limited to particular customers or channels; and
• the basis for comparative claims such as “cheapest” or “best”.

A discount is not made safe merely by adding small-print qualifications. If the headline creates a strong impression that the qualification later contradicts, the overall advertisement may still mislead.

Do not misstate customer rights

Statements about refunds, returns and remedies deserve special attention because consumers may rely on them when deciding whether to buy or complain. It is unlawful to mislead consumers about their consumer-guarantee rights.[S1]

Risky wording includes:

• “No refunds under any circumstances.”
• “Faulty goods must be returned within seven days.”
• “The manufacturer is solely responsible.”
• “Sale items have no consumer rights.”
• “You must pay for return shipping even where the product is faulty.”

A business can explain its preferred returns process, but the process must not imply that a customer has fewer rights than the ACL provides. Policies should also explain that voluntary change-of-mind returns are different from remedies for defective, unsafe or incorrectly described goods.

Build a compliance process

A practical compliance system should cover the entire customer journey, not just formal terms and conditions.

Before publication

Identify every representation made in advertisements, product pages, packaging, invoices, receipts, social media, scripts and automated messages. Check whether each claim is accurate, current and supported by evidence. Confirm that qualifications are visible and understandable.

At the point of sale

Ensure staff can explain consumer guarantees without promising an outcome that depends on the facts. Checkout systems should not automatically reject lawful complaints because an item is discounted, a receipt is unavailable or a stated internal deadline has passed.

After a complaint

Escalate potential ACL issues promptly. Preserve the advertisement, transaction record, product information and staff notes. A consistent complaint process can reduce repeated errors and reveal whether a broader correction is needed.

When a mistake is found

Stop the misleading claim, correct digital and physical materials, notify relevant teams and consider whether affected customers should receive clarification or a remedy. Legal advice may be appropriate where the claim was widespread, involved many customers or concerned an important consumer right.

A final review checklist

Before launching a promotion or policy, ask:

• Does the statement accurately describe the product, service or offer?
• Is any comparison price genuine and supported by records?
• Does the wording preserve consumer guarantees?
• Could a reasonable customer read the statement as excluding a lawful remedy?
• Are important conditions clear before purchase?
• Do staff scripts match the written policy?
• Can the business prove the factual basis for each claim?

For WA businesses, preventing misleading claims is usually cheaper and simpler than correcting them after complaints or regulatory scrutiny. Accurate advertising, carefully drafted warranty language and staff training provide a practical foundation for ACL compliance.