Do Australian Consumer Law advertising rules apply to WA social media posts?

Yes. The same rules apply to social media advertising as to other advertising. Business posts, paid promotions and incentivised influencer content must be accurate, truthful and not misleading.[S3]

Can a business offer a discount for a customer review?

An incentive should not depend on the review being positive. The incentive should be available for positive or negative feedback and clearly disclosed to consumers.[S2]

What evidence should a business keep for advertising claims?

The evidence depends on the claim, but may include pricing records, product specifications, testing, supplier information, stock records and promotion terms. A business must be able to prove its advertised claims.[S1]

Can fine print fix a misleading headline discount?

Not necessarily. Important exclusions or conditions may not cure a headline such as “storewide” or “everything” if the overall impression remains misleading.[S1]

Is a business responsible for misleading comments on its social media page?

Businesses should set posting rules, monitor content and remove or respond to comments and reviews that may be false or misleading.[S3]

WA Advertising Compliance: A Practical Guide to Reviews, Discounts and Social Media Claims

WA businesses must ensure advertising is accurate, provable and not misleading. Learn how to check discounts, reviews, promotions and social media claims.

The basic rule for WA businesses

Businesses in Western Australia must take care that advertising and promotional statements are accurate, truthful and unlikely to mislead consumers. The same Australian Consumer Law rules apply whether a claim appears in a shop, on a website, in an email, on packaging or through social media.[S1]

A claim can create legal risk even where the business did not intend to mislead. The practical question is how an ordinary consumer is likely to understand the overall impression created by the advertisement, including its headline wording, images, price and conditions.[S1]

Keep evidence before publishing

A business must be able to prove claims it advertises, and claims should be based on reasonable grounds.[S1] Evidence may include product specifications, testing records, supplier information, pricing history, stock records, qualifications, performance data or written terms for a promotion.

A useful internal check is to ask:

What exactly is the advertisement promising?
What evidence supports that promise?
Does the evidence apply to the product, service, location and period being advertised?
Could a customer reasonably take a broader meaning from the headline than the business intended?
Are important qualifications visible and clear enough to understand?

If staff, contractors, agencies or influencers make the claim for the business, the business should apply the same approval process before publication. Social media content is not exempt because it is informal, short-lived or posted by someone else.[S1]

Discounts, savings and promotional prices

Discount language can mislead when it suggests a saving that consumers cannot realistically obtain. Businesses should ensure that advertised sale prices, reference prices and savings claims are genuine and supported by the relevant pricing history or other evidence.[S1]

A claim such as “50% off everything” may be misleading if significant products or brands are excluded, even if exclusions appear in fine print.[S1] Similarly, “storewide”, “sitewide”, “lowest price” and “was/now” statements should match what customers can actually buy and pay for.

Before publishing a discount, check:

The reference price was a real price at which the product was offered, rather than an inflated or artificial comparison.
The advertised percentage or dollar saving is mathematically correct.
Exclusions, minimum spends, membership requirements and geographic limits are prominent and understandable.
The advertised stock is available in reasonable quantities for a reasonable period where the promotion relies on attracting customers with a low price.
The business can supply any promised cashback, gift, prize, rebate or other promotional benefit on the stated terms.[S1]

Terms should not quietly undermine the main message. A prominent “20% off” claim followed by a difficult-to-find condition that most products are excluded may leave consumers with a misleading overall impression.[S1]

Vouchers, gifts and prizes

Cashback offers, prizes, gifts, gift cards and discount vouchers can involve additional requirements. Businesses should state important conditions clearly, including eligibility, expiry, redemption limits, participating locations and any steps the consumer must take.[S1]

The business should also confirm that it can provide the advertised benefit as promised. Offering a free item or prize without intending to supply it, or failing to provide it in accordance with the promotion, can create compliance problems.[S1]

Reviews and testimonials

Online reviews should be independent, genuine and reflective of the reviewer’s actual experience with the product or service.[S1] This applies to reviews on a business website, social media account and third-party review platform.[S1]

Businesses must not create fake or misleading reviews or arrange for others to do so.[S1] Risky practices can include writing reviews for customers, publishing invented testimonials, using reviews from people who did not use the product, or presenting manipulated ratings as authentic customer feedback.

Incentives need particular care. Offering a discount, free product or gift in return for a positive review risks misleading consumers. If customers are rewarded for leaving reviews, the incentive should apply regardless of whether the review is positive or negative, and the incentive should be clearly disclosed.[S2]

A practical review policy should:

Invite feedback without requiring praise.
Keep records showing who received an incentive and what disclosure was used.
Avoid editing reviews in a way that changes their meaning.
Avoid selectively presenting reviews if doing so creates a misleading impression.
Have a process for identifying and addressing fake, abusive or inaccurate content.

A business can respond to criticism, but a response should not imply that a reviewer had a different experience unless the business has a proper basis for saying so.

Social media advertising

Australian Consumer Law applies to social media advertising in the same way as other advertising.[S3] This includes a business’s own posts, paid advertisements, promoted content and posts made by influencers who receive incentives from the business.[S3]

Statements on social media should be true, accurate and capable of proof.[S3] Businesses should check captions, images, hashtags, videos, replies, linked landing pages and any claims made by an influencer. A short post can still communicate claims about price, performance, availability, health effects, environmental benefits or customer results.

Influencer arrangements should include clear instructions about approved claims, required disclosures, evidence and correction or removal of non-compliant content. Paying for a post or providing free products does not transfer responsibility for misleading representations away from the business.[S3]

Comments and community content

Businesses may also have responsibilities for misleading comments and posts made by others on their social media pages.[S3] Businesses should set clear posting rules, display them prominently, block users who breach those rules and remove or respond to posts or reviews that may be false or misleading.[S3]

This does not mean every negative comment must be removed. The focus is on managing content that could mislead consumers, particularly where the business knows about it, encourages it or leaves it uncorrected while using it to promote sales.

A simple pre-publication checklist

Before an advertisement goes live, confirm that:

1. Every factual claim has a named evidence source.

2. The overall impression matches the offer customers will receive.

3. Prices, savings and comparison prices are accurate.

4. Conditions and exclusions are clear and prominent.

5. Stock, timing and redemption arrangements are realistic.

6. Reviews and testimonials are genuine and properly disclosed.

7. Influencers and agencies have compliance instructions.

8. Social media comments and reviews are monitored and corrected where necessary.

9. Expired promotions and inaccurate posts are removed or updated.

10. Records of approvals, evidence and promotion terms are retained.

This checklist is not a substitute for legal advice, particularly for regulated products, complex promotions or campaigns involving health, finance, children or vulnerable consumers. However, it can help a business identify the most common problems before consumers see the claim.